Types of Bank
There are different types of banks, each with unique roles:
Central Bank
The Reserve Bank of India (RBI) is India's central bank. It supervises other banks, setting policies to ensure a stable economy.
Commercial Banks
Commonly used for daily banking needs like savings, loans, and payments. Public sector banks are government-run, while private sector banks are operated by private companies.
Cooperative Banks
These community-based banks serve specific groups or regions, offering support and services that meet local needs.
Specialized Banks
These include investment banks, which help companies raise money, and development banks, which support economic growth, such as EXIM and NABARD.
Small Finance Banks
Focusing on serving small businesses and low-income households, these banks provide basic banking services to underserved areas, especially in rural regions.
Payment Banks
Designed to offer digital banking services, they enable cashless payments and limited deposits, particularly benefiting remote or underserved communities.
Key Banking Products
Banks offer a wide range of products that cater to different financial needs:
Savings Account
A secure place to store your money while earning interest. Savings accounts use monthly compounding, so the interest you earn each month gets added to your balance.
Current Account
Mainly used by businesses and individuals with frequent transactions, current accounts offer higher transaction limits and features like overdraft facilities.
Fixed Deposit (FD)
This option lets you lock in a sum of money for a fixed period to earn higher interest than a regular savings account. FDs are ideal for those who want their money to grow but won’t need it immediately.
Recurring Deposit (RD)
Perfect for those who prefer to save regularly but in smaller amounts. You make a fixed deposit monthly, which earns interest over time, helping you build a savings habit and reach your goals.
Debit Card
Linked directly to your bank account, a debit card allows you to spend money you already have.
Credit Card
Unlike debit cards, credit cards let you borrow money from the bank for purchases. You repay this amount later, and timely repayments can help build a good credit score.
Third-Party Products (TPP)
Many banks also offer products like insurance and mutual funds through collaborations with other companies.
Banking Channels
Banks today offer multiple channels to make banking more accessible and flexible:
Bank Branch
The traditional bank branch still plays an important role. You can visit for help with transactions, financial advice, and personalized services. With self-service kiosks and digital features, branches are modernizing to improve customer convenience.
ATM Services
An Automated Teller Machine (ATM) is a self-service device that enables users to perform banking transactions such as cash withdrawals, balance inquiries, fund transfers, and bill payments without needing assistance from a teller. Accessible 24/7, ATMs allow individuals to manage their accounts conveniently beyond regular banking hours.
Internet Banking
With internet banking, managing your finances has never been easier. You can check balances, pay bills, transfer funds, and more – all online, 24/7, from the comfort of home.
Mobile Banking
Banking apps bring all your bank’s features to your smartphone, making it convenient to manage your money on the go.
WhatsApp Banking
A newer service, WhatsApp Banking, allows you to communicate with your bank through a simple chat, handling tasks like checking balances, downloading statements, and applying for products – all via the popular messaging app.
Call Center Assistance
For those who prefer speaking directly to someone, bank call centers provide 24/7 support.
Inside a Bank Branch
To understand how a bank branch operates, it helps to know the different roles of its employees:
1
Teller
Assists with deposits, withdrawals, and passbook updates.
2
Relationship Manager
The first point of contact for personalized advice and customer support.
3
Bank Sales Representative
Focuses on attracting new customers and encouraging them to open accounts.
4
Deputy Branch Manager
Assists the branch manager in overseeing day-to-day activities, ensuring compliance, and monitoring business growth.
5
Branch Manager
The leader of the branch, responsible for smooth operations, customer service, sales, and overall administration.
In the advanced module, we’ll explore topics such as types of banks, understand popular banking products, and learn about both savings and current accounts in more detail. Further, the banking service channels will be explained along with the functionality of bank branches and ATMs. We will also examine the role of RBI & recent regulatory changes happened in Banking sector.