There are different types of banks. The need for the variety between these banks is because every bank is dedicated in their own field. Each bank has its own values and rules. Different rates of interests are too renowned among these banks. A bank is approved and regulated monetary institutions that loan money,allows deposits and take out other monetary dealings for its customers. Types Of Banks: As you identify, are monetary organizations that believe deposits from public and pay interest in return. Banks do this in variety of ways.
Different Types Of Banks
Saving banks are recognized to make saving habit between the people. These banks are cooperative for salaried people and low earnings groups. The deposits collected from customers are put in bonds, safeties, etc. At present the majority of the commercial banks take the functions of savings banks. Postal sections also do the purpose of saving bank.
Commercial banks are established with a purpose to help businessmen. These types of banks gather money from common community and give short-time loans to businessmen by technique of cash credit, overdrafts, etc. Commercial banks offer a variety of services like collecting cheques, bill of exchange,and remittance money from one position to another place. The strategies concerning deposits, loans, rate of interest, etc. of these banks are controlled by the Central Bank.
Federal or National Banks
These banks manage the principles and policies of other banks across the country. These banks are administrated and run by the government. This bank provides standard which other banks should chase.
Industrial development Banks
Industrial Development banks collect cash by issuing share and debentures and given that long-term loans to industries. The main objective of these banks is to give extensive-term loans for growth and modernization of industries.
These types of banks will be accessible in other than a single country. They offer services for the trade and selling of gold and silver;every transaction will be in foreign currencies.
These are customer friendly banks; they give confidence the consumer in trading profitable products and give choice for easy pay back of the loan amount.
Land Development’s Bank
These types of banks endorse growth in the food division, by giving credits to farmer at a comparatively minor interest charge. The loan is generally given on the base of land. If a farmer has lots of farming fields then the more will be the loan provided.