This document provides an overview of different types of banks and their functions. It discusses savings banks, commercial banks, cooperative banks, investment banks, specialized banks, and central banks. It notes that commercial banks can be further divided into public sector banks, private sector banks, and foreign banks. The primary functions of banks are accepting deposits and granting loans. Secondary functions include agency functions and various utility services. Popular bank accounts discussed include current accounts, savings accounts, recurring deposits, and fixed deposits.

1. By Compufild
Date: 26/6/2015

2. A Bank is “an establishment for custody of money
Which It Pays Out On Customer’s Order”
What is bank?

3. Features of Bank

4. Types of bank:
1. Saving Bank
2. Commercial Bank
a) Public Sector Banks
b) Private Sector Banks
c) Foreign Banks
3. Co-operative Banks
a) Primary Credit Society
b) Central Co-operative Banks
c) State Co-operative Banks
4. Investment Banks
5. Specialized Banks
6. Central Banks.

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Savings Banks : these banks functions with the intention to culminate saving
habits among the people, especially those who belong or low income groups or those who
are salaried. The money these people deposit in the banks are invested in securities, bonds
etc.
Commercial banks: these bank function to help the entrepreneurs and
Business . They give financial services to those businessmen like debit card, banks accounts,
short term deposits, etc. with the money people deposit in such banks . They also land
money to businessmen in the form of overdrafts, credit card, secured loans, unsecured loans
and mortgage various policies regarding the loans, rate of interest and loans etc are
controlled by the seserv bank. These days, the commercialized bank provide some services
given by investment bank to their clients
The commercial bank can be further classified as: public sector bank, private sector banks,
foreign banks and regional banks
1. The public sector banks are owned and operate by the government, who has A major
share in them. The major focus of this bank is to serve the people rather eam profits.
Some example of these banks include State Bank Of India, Punjab National Bank, Bank
Of Maharashtra Etc.

6. 2. The private sectors banks are owned and operated by private institute.
They are free to operate and are controlled by market forces. A greater share is held by private
players and not the government. For example, axis bank, kotak Mahindra bank.
3. The foreign banks are those that are based in a foreign country but have several
branches in India. Some examples of these banks includes ; HSBC, Standard chartered banks
Co-operative Banks:These banks are controlled, owned, managed and
operated by cooperative societies and came into existence under the Cooperative Societies Act
in 1912. these banks are located in the urban as well in the rural areas. Although these banks
have the same functions as the commercial banks, they provide finance to farmers, salaried
people, small scale industries, etc. and their rates of interest of interest are lower as compared to
other banks.
There are three types of cooperative banks in India, namely:
1. Primary credit societies: These are formed in small locality like a small town
or a village. The members using this bank usually know each other and the chances of
committing fraud is minimal.
2. Central cooperative banks: These banks have their members who belong to the
same district. They function as other commercial banks and provide loans to their
members. They act as a link between the state cooperative banks and the primary
credit societies. Compufield 29/6/2015 6

7. 3.State cooperative banks: These banks have a presence in all the states of
the country and have their presence throughout the state.
Investment banks: These are financial institutions that provide financial and
advisory assistance to their customers. Their clients can be individuals, businesses, or
government organizations. They assist their customers to raise funds when required. These
banks act as the underwriters for their customers when they want to raise capital by issuing
securities. In some cases, they also help their customers to issue securities.
When there is a merger or an acquisition, they provide their customers with the necessary
support like marketing, foreign trading, foreign exchange, sale of equities, fixed income
instruments etc. Apart from raising capital, these banks render valuable financial advise to their
customers and various kinds of businesses. Some examples of these banks include, Bank of
America, Barclays Capital, Citi Bank, Deutsche Bank etc.
Specialized banks: These provide unique services to their customers. Some
such banks include, foreign exchange banks, development banks, industrial banks, export
import banks etc. These banks also provide huge financial support to businesses and various
kinds projects and traders who have to import or export their goods or services.
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8. Central bank: The central bank is also called the banker's bank
in any country. In India, the Reserve Bank of India is the central bank. The
Federal Reserve in USA and the Bank of England in UK function as the
central bank. This bank makes various monetary policies, decides the rates of
interest, controlling the other banks in the country, manages the foreign
exchange rate and the gold reserves and also issues paper currency in a
country. The monetary control is the primary function of a central bank in
most countries and so they are considered as the lender of last resort to various
commercial banks.
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9. Compufield 29/6/2015 9
what are the functions of bank?

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What are the functions of bank?
FUNCTION
OF BANK
PRIMARY
FUNCTION
Accepting
deposits
Granting
Loans and
advance
SECONDARY
FUNCTIONS
Agency
functions
Utility
Functions
Saving deposit
Fixed deposit
Current deposit
Recurring deposit
Cash Credit
Bank 0ver Draft
Loans
Discounting Bills
Funds Transfer
Cheques Collection
Periodic
Payments/Collection
Portfolio Management
Other Function
Issue Of Draft, Letter Of Credits, Etc
Locker Facility
Underwriting Of Shares
Dealing In Foreign Exchange
Project Reports
Social Welfare Programmes
Other Utility Function

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1.Current account
2.Savings account
3.Recurring deposit
4.Fixed deposit

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CURRENT ACCOUNT: Current accounts are
Usually for businessmen and daily transaction. It doesn’t serve a
Purpose of saving your investment . The transaction facility to this
Account is so flexible that you can make innumerable transaction in
A day. Hence, the ban don’t pay any interest on your invested
Amount but it charges certain service charges on such accounts.

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SAVING ACCOUNT : saving account are
The most popular kind of individual accounts for personal purpose
Of saving your investments and getting interest rates. Saving
Account provides cheque facility along with flexibility for the
deposit
And withdrawal of funds from your account.

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RECURRING DEPOSIT: Recurring Deposits also
Known as RD accounts who wish to invest an average amount of
their
Saving on a monthly basis. These accounts gain interest on the
amount
Available in your account. These account is specially design for the
Working public who don’t want to invest a large amount at once
instance

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FIXED DEPOSIT: fixed deposits popularly known
As FD are available at various schemes with a tenure from 7
days to
10 years. This account is specially design who want to deposit
Their saving for a long term to gain good rate of interest. But the
Interest rate on