CLASSIFICATION OF BANKS ON THE BASIS OF FUNCTIONS

Commercial banks: Commercial banks are opened for profit motive.commercial banks accept the deposits from general public and provide short term loans to manufactures and traders and commercial banks also performs a various agency functions for their customers.

IN INDIA,THERE ARE TWO TYPES OF COMMERCIAL BANKS

1. Foreign commercial banks:Foreign commercial banks are based in foreign countries but they also have a branch in India.
2. Indian commercial banks:Indian commercial banks are based in India like there are types of Indian commercial banks :

Public sector banks : Public sector banks are owned by government.

Private sector banks:Private sector banks are owned by Private sector.

Industrial development bank: Industrial development banks are those banks which gives medium term and long term loans to industries.

Agricultural bank:Agricultural banks are those banks which provides loan mainly for agricultural works.

Regional rural banks:Regional rural banks help to provide loan to small traders,small farmers and for the development of agricultural activities.