What Are the Different Types of Banks?

The different types of banks are as follows:

Let’s look at these banks in details: please note that the numbers mentioned in the table below are subject to market change

	Commercial banks	Small finance banks	Payments banks	Co-operative banks
What	For-profit banks	Provide services where commercial banks cannot reach	Accept deposits up to Rs. 1 Lakh	Operate on no-profit-no-loss basis
For whom	For individuals, for businesses	Small businesses, small and marginal farmers and the unorganised sector	Those who want to transfer funds, make online payments, use net banking, ATM and debit cards	Farmers, entrepreneurs, retirees, small businesses, urban self-employed
Interest On loans	6.75% to 11.75%	Around 11% to 17%	Do not offer loans.	13% to 15%
Interest On deposits	5% to 7%	3% to 7%	2% to 6%	8% to 9%
Risk factor	Low for deposits, Medium for Loans	Medium	Very low	Low for deposits, Medium for Loans
Types	a. Private-sector banks b. Public-sector banks c. Regional Rural banks	NA	NA	a. Rural co-operative banks b. Urban co-operative banks

Here are some examples of commercial banks:

Following are the examples of small finance banks:

These are examples of payments banks:

These are examples of co-operative banks:

All the online banking websites for banks in India can be found here

That was a comprehensive guide on the various types of banks. You can choose from one of them based on your requirements.

In the next section, let us look at what services do banks offer.