Types of Banks. Types of Banks. Central bank Development Bank Investment Bank Cooperative Credit Bank Regional Rural Bank Non Banking Financial Companies. Central Bank.
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Types of Banks
The money market that acts as the central monetary authority of the country , serving as the government bank as well as the bankers’ bank is known as a central bank of the country.
Functions- The main functions of central bank of a country are functions of note issue, bankers to government, bankers bank etc.
The RBI as the central bank of the country is the centre of the Indian financial and monetary system. It has been guiding, monitoring, and regulating, controlling, and promoting destiny of the IFS. It is quite young compared with such central banks as the Bank of England, Risks bank of Sweden, and the Federal Reserve Board of the U.S.
As the central banking authority of India, the reserve Bank of India performs the following traditional functions of the central bank:
In addition to the traditional functions of the central banking authority, the Reserve bank of India performs several functions aimed at developing the Indian financial system:
Meaning:- Financial intermediaries that acquire the savings of people and direct these funds into the business enterprises seeking capital for the acquisition of plant and equipment and for holding inventories are called ‘investment banks’.
Features:-Long term financing, Security, merchandiser, Security middlemen, Insurer, Underwriter
Functions:- Capital formation, Underwriting, Purchase of securities, Selling of securities, Advisory services, Acting as dealer.
Meaning:- Institution that render wide range of services such as the management of customer’s securities, portfolio management, counseling, insurance, etc are called ‘Merchant Banks’.
Functions:- Sponsoring issues, Loan syndication, Servicing of issues, Portfolio, management, Arranging fixed deposits, Helps in merger& acquisition
The changes in banking structure and control have resulted due to
Indigenous bankers are those individuals or private firm who receives deposits and lend money or deals with funds.