Types of banks and forms of banking


Types of Banks 

There are three kinds of banks in our country:


Commercial Banking 

These are banks that service individual customers. 

They offer loans, investment options, and even Demat accounts for stock trading. 


Corporate Banking 

These banks specialize in the complex financial needs of large institutions.

Corporate banking services include current accounts, checking accounts, escrow accounts, and credit facilities.


Central Banking 

These banks are the central regulatory authority of all banks in a country.

In India, banks are regulated by the Reserve Bank of India. 

 




Forms of Banking

Banking today exists in a myriad of forms, thanks to the advancement of technology.


Mobile Banking 

Banks today have a mobile app where account holders can make transactions, check balances, open deposits and more. 

Most people today prefer a mobile app over a physical bank branch for basic functions. 


Internet Banking 

Banks today also have a website where account holders can log in and carry out all the functions that previously required a visit to a bank branch.


Digital Banking 

Digital banking is a service offered by brick-and-mortar banks, to make transactions easier for their customers. 

Digital banking has become so popular that most people now prefer making payments through NEFT or IMPS, or the newly launched UPI. 


Neo banking

Neobanks operate entirely online with no physical presence at all.

Neobanks offer flexibility and ease of use that legacy traditional banks typically do not, or cannot offer.

Legal regulations have not yet caught up to these new-age banks, the RBI “is cognizant of the benefits that neobanks bring to the table”. 

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