Bank an establishment authorized by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial transactions, and provide other financial services to its customers. There are many types of bank. These are as bellow:-
1) Central Bank
The bank that acts as the central monetary authority of the country and serves the government is a central bank. The main functions of a central bank are: Issue of notes, Providing and conducting banking services to/for the Government, Providing banking services to other banks.
2) Commercial Bank
Commercial Banks comprise of public sector banks, private sectors banks and foreign banks which accept public deposits, advances loans to the public and offer other related services to earn profit.
3) Development Bank
It is a financial Institution concerned with providing all types of financial assistance to business units in form of loans, underwriting services, Investment and Guarantee Operations and Promotional Activities. It aims at industrial development and economic development in general.
4) Investment Bank/ Industrial Bank
These are Financial Intermediaries that acquire the savings of people and direct these savings into business enterprises seeking funds.
5) Cooperative Bank
These banks are concerned with mobilizing savings and stimulating agricultural investment in the country. It can be classified into three types of banks:
• State co-operative Bank
• Central Co-operative Bank
• Primary Agricultural Credit Societies.
6) Regional Rural Bank/Agricultural Bank
These banks are oriented towards meeting the needs of the weaker section of the society consisting mainly of small entrepreneurs, farmers, agricultural labourers.
7) Non-Banking Financial Institution (NBFI)
It means a financial institution which is a company and a non-banking institution, whose principal business is receiving of deposits under various schemes or arrangement or lending or in any other manner.
It can be classified into: Merchant Banks, Commercial Banks, Indigenous Banks
8) Exchange Bank
These banks are involves with Buying and selling of Foreign currencies and accepting foreign bills of exchange.