Banking Awareness: Banking Structure in India

Banking Awareness forms an important part of Bank exams. Study our Banking Awareness topics to excel in Bank exams.

Bank – A bank is a financial institution that accepts deposits from the public and grants loans. The difference of interest rate between this acceptance and deposit and grating of loan is a major source of income for the banks.

Types of Banks

Reserve bank of India – RBI is the central bank of India established in 1935.

Scheduled Banks and Non-Scheduled Banks– A scheduled bank is one that is listed in the second schedule of RBI Act, 1934. Banks having paid up capital of at least Rs 5 lakh are eligible for inclusion in the Second Schedule to the Reserve Bank of India Act, 1934.

Non- scheduled banks are those which are not included in the second schedule of the RBI Act, 1934. A non-scheduled bank doesnot have to maintain CRR with the RBI. Also it cannot lend money from RBI under LAF. 

Commercial Banks– Commercial banks are joint stock companies, incorporated as a banking company that operates for the profit motive. Cooperative banks are cooperative organisations and work for service motive. Cooperative Banks will be discussed in another post.

Public Sector Banks– These are banks where majority stake is held by the Government of India. It includes the 19 Nationalised banks, State Bank of India and IDBI Bank. (List in Annex I)

Private Sector Banks– These are banks majority of share capital of the bank is held by private individuals. Local Area Banks, Small Finance Banks and Payments Banks are Private Sector Banks.

Local Area Banks– In 1996 it was decided to allow the establishment of local banks in the private sector. These banks were expected to bridge the gaps in credit availability and enhance the institutional credit framework in the rural and semi-urban areas and provide efficient and competitive financial intermediation services in their area of operation. The minimum start-up capital of a LAB was fixed at Rs.5 crore.

Foreign Banks– These banks are registered and have their headquarters in a foreign country but operate their branches in our country.

Regional Rural Banks– Formed under Regional Rural Bank Ordinance 1975. (Replaced later by Regional Rural Bank Act, 1976(2) of 1976 of Government of India).

  • Regional Rural Banks (RRBs) were set up with a view to developing the rural economy by providing credit for the purpose of development of agriculture, trade, commerce, industry and other facilities, particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs.
  • The first Regional Rural Bank “Prathama Grameen Bank” was set up on October 2, 1975. Sponsor Bank- Syndicate Bank. Head Office- Moradabad
  • The Government of India, the concerned State Government and the sponsor bank contribute to the share capital of RRBs in the proportion of 50%, 15% and 35%, respectively.


(Annex I)

List of Regional Rural Banks
List of Regional Rural Banks in India
Sr. No. Name of the RRB
1 Andhra Pradesh Grameena Vikas Bank
2 Andhra Pragathi Grameena Bank
3 Chaitanya Godavari Grameena Bank
4 Telengana Grameena Bank
5 Saptagiri Grameena Bank
6 Arunachal Pradesh Rural Bank
7 Assam Gramin Vikash Bank
8 Langpi Dehangi Rural Bank
9 Bihar Gramin Bank
10 Madhya Bihar Gramin Bank
11 Uttar Bihar Gramin Bank
12 Chattisgarh Rajya Gramin Bank
13 Baroda Gujarat Gramin Bank
14 Dena Gujarat Gramin Bank
15 Saurashtra Gramin Bank
16 Sarva Haryana Gramin Bank
17 Himachal Pradesh Gramin Bank
18 Ellaquai Dehati Bank
19 Jammu & Kashmir Grameen Bank
20 Jharkhand Gramin Bank
21 Vananchal Gramin Bank
22 Kaveri Grameena Bank
23 Karnataka Vikas Grameena Bank
24 Pragathi Krishna Gramin Bank
25 Madhyanchal Gramin Bank
26 Narmada Jhabua Gramin Bank
27 Central Madhya Pradesh Gramin Bank
28 Vidharbha Konkan Gramin Bank
29 Maharashtra Gramin Bank
30 Manipur Rural Bank
31 Meghalaya Rural Bank
32 Mizoram Rural Bank
33 Nagaland Rural Bank 
34 Utkal Grameen bank
35 Odisha Gramya Bank
36 Puduvai Bharathiar Grama Bank
37 Malwa Gramin Bank
38 Punjab Gramin Bank
39 Sutlej Gramin Bank
40 Baroda Rajasthan Kshetriya Gramin Bank
41 Rajasthan Marudhara Gramin Bank
42 Pallavan Grama Bank
43 Pandyan Grama Bank
44 Tripura Gramin Bank
45 Allahabad UP Gramin Bank
46 Gramin Bank of Aryavart
47 Baroda UP Gramin Bank
48 Kashi Gomti Samyut Gramin Bank
49 Prathama Bank
50 Purvanchal Bank
51 Sarva UP Gramin Bank
52 Uttarakhand Gramin Bank
53 Bangiya Gramin Vikas Bank
54 Paschim Banga Gramin Bank
55 Uttarbanga Kshetriya Gramin Bank
56 Kerala Gramin Bank

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