Commercial banks
An institution which accepts deposits, makes business loans,
and offers related services. Commercial banks also allow for a variety of
deposit accounts, such as checking, savings, and time deposit. These
institutions are run to make a profit and owned by a group of individuals, yet
some may be members of the Federal Reserve System. While commercial banks offer
services to individuals, they are primarily concerned with receiving deposits
and lending to businesses.
TYPES
OF COMMERCIAL BANKS:
1) Private banks
A private bank is owned by the people who put money into its
creation, or who subsequently invested in it by buying shares, etc.; any
profits it makes, minus taxes, go to the people who own it, and they are liable
for any losses (allowing for a limited liability company substantially limiting
the degree to which individuals can be made liable for losses).
2) Nationalised bank
a)A nationalized bank
is one that is operated by the government.
b)It would operate much the same as a commercial bank, but
because government has so many more rules and regulations applying to its own
(the government's) operation, it's usually unprofitable.
c)A nationalized bank is one of the systems under which
other governments operate. These systems are socialism, communism, and
dictatorships.
Cooperative bank
There are two main
categories of the co-operative banks.
(1) Short term lending oriented co-operative Banks - within
this category there are three sub categories of banks viz state co-operative
banks, District co-operative banks and Primary Agricultural co-operative
societies.
(2) Long term lending
oriented co-operative Banks - within the second category there are state
co-operatives and rural development banks.
TYPES
OF COOPERATIVE BANK:
1) District Central
Co-op Banks:
These are the
federations of primary credit societies in a district and are of two types –
those having a membership of primary societies only and those having a
membership of societies as well as individuals.
The funds of the bank consists of share capital, deposits,
loans and overdrafts from state co-operative banks and joint stocks. These
banks finance member societies within the limits of the borrowing capacity of
societies. They also conduct all the business of a joint stock bank.
2) State Co-operative
Banks:
he state co-operative
bank is a federation of central co-operative bank and acts as a watchdog of the
co-operative banking structure in the state. Its funds are obtained from share
capital, deposits, loans and overdrafts from the Reserve Bank of India.The
state co-operative banks lend money to central co-operative banks and primary
societies and not directly to farmers.
Development
Banks
Business often requires medium and long-term capital for
purchase of machinery and equipment,for using latest technology, or for
expansion and modernization. Such
financial assistance is provided by Development Banks. They also undertake
other development measures like subscribing to the shares and debentures issued
by companies, in case of under subscription ofthe issue by the public.
Industrial Finance Corporation of India (IFCI) and State FinancialCorporations
(SFCs) are examples of development banks in India.
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