A Bank is a financial institution which collects money from the public and institutions to safeguard them and return to them when required; they also lend money to the public as the loan.
Different types of Banks
Development Banks / Industrial Banks: Development or industrial banks are those financial institutions which are connected in the promotion of industries, agriculture and other important sectors. The primary function of these banks is to provide long term loan to the industries for their development, expansion and modernization. Example Of Development Banks / Industrial Banks: IDBI (Industrial & Development Bank of India) , IFCI (Industrial Finance Corporation of India).
Central Bank: Central Banks are bankers to the other banks in all the countries. Primary functions of central banks are to issue paper currency, to control foreign currency, works as bankers of government etc.
Saving Banks: A saving bank is a financial institution whose primary purpose is to accept saving from the public. These banks are beneficial for the salaried and low income people. At present all commercial banks and postal department perform the function of saving banks.
Cooperative Banks: Functions of cooperative banks are similar to the commercial banks; these banks are registered under the cooperatives Societies Act, 1912. They gives loan facility to small farmers, small scale industries etc.
Exchange Banks: These banks are mainly involved in financing of foreign trade. Primary function of exchange banks are transfer of funds from one country to another, discounting foreign bills, buying and selling of goods from foreign.
Consumer’s Banks : These banks provides loan to consumers to buy consumer durables items such as T.V. , refrigerator , Washing machines etc.