Though there are various many different types of banks in the world, only the following are the different types of banks that are functional in India:
| Type of Bank | Meaning | Example |
| Central Bank | Regulates all banks, controls monetary policy, and issues currency. | Reserve Bank of India (RBI) |
| Public Sector Banks (PSBs) | Majority-owned by Govt. of India; provide nationwide banking services. | State Bank of India (SBI), PNB |
| Private Sector Banks | Privately owned profit-driven banks serving individuals and businesses. | HDFC Bank, ICICI Bank |
| Foreign Banks (Branches in India) | Global banks with physical branches in India for cross-border finance and services. | HSBC, Barclays |
| Foreign Banks (Wholly Owned Subsidiary) | Foreign banks set up as independent Indian entities. | DBS |
| Foreign Banks (Representative Offices) | Liaison offices that can’t do banking but promote parent bank’s business. | Bank of Indonesia (India Office) |
| Specialized Banks | Focused on specific sectors like industry, exports, agriculture, etc. | EXIM Bank, NABARD, SIDBI |
| Regional Rural Banks (RRBs) | Serve rural areas to promote agriculture and development. | Prathama UP Gramin Bank |
| State Co-operative Banks (SCBs) | Apex-level cooperative banks in each state supporting district cooperatives. | Maharashtra State Cooperative Bank |
| District Central Co-operative Banks (DCCBs) | District-level co-op banks providing credit to primary societies and rural clients. | Amravati DCC Bank |
| Co-operative Banks – Scheduled Urban Cooperative Banks | Urban co-ops listed under RBI’s 2nd Schedule; follow stricter rules. | Cosmos Bank |
| Co-operative Banks – Non- Scheduled Urban Cooperative Banks | Smaller urban co-ops not listed in RBI’s schedule. | Abhyudaya Bank |
| Local Area Banks (LABS) | Small private banks operating in 3 districts only, to serve local needs. | Coastal Local Area Bank |
| Payments Banks | Can accept deposits and offer basic services but can’t lend. | Paytm Payments Bank, Airtel Payments Bank |
| Small Finance Banks | Serve small businesses and low-income groups with loans and savings products. | AU Small Finance Bank, Ujjivan SFB |
