Specialized Banks
Apart from the above types of banks, there are certain banks that were introduced to cater to the specific needs of the customers. These banks are called specialized banks. They are as follows:
1. SIDBI (Small Industries Development Bank of India)
The SIBDI provides loans for small-scale industries or businesses. Customers in need of financing their small businesses with modern technology and equipment, turn to the SIBDI for financial assistance.
2. EXIM Bank (Export-Import Bank)
The EXIM Bank is responsible for financing exporting and/ or importing goods by foreign countries. It is regulated under the Export-Import Bank of India Act of 1981 as a provider of export credit, reflecting the global Export Credit Agencies.
3. NABARD (National Bank for Agriculture and Rural Development)
The NABARD provides all kinds of financial assistance for rural, village, agricultural development, handicrafts, etc. Hence, it is considered as the apex regulatory body for the overall regulation of RRBs and cooperative banks in India. The NABARD is under the jurisdiction of the Ministry of Finance.
4. Small Finance Banks
These are another important type of bank that performs functions to aid micro industries, marginal farmers, and small artisans. Small finance banks provide loans and financial assistance to needy individuals in the unorganized sector of society.
These banks are regulated by the RBI. Some of the small finance banks currently operational in the country are AU Small Finance Bank, Suryoday Small Finance Bank, Capital Small Finance Bank, Northeast Small Finance Bank, and Jana Small Finance Bank.
5. Payments Banks
Payments Banks are a newly introduced form of banking conceptualized by the RBI. Such banks call for a deposit amount of up to INR 1 lakh and do not enable customers to apply for credit cards or loans.
Payments banks cater to the services of online banking, debit cards, mobile banking, etc. Leading payment banks in India are Airtel Payments Bank, NSDL Payments Bank, Jio Payments Bank, Fino Payments Bank, and so on.
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That’s all on Functions of Banks study notes. We hope the above study material is useful for candidates preparing for the banking and finance exams. For more such study resources, get our Testbook App and drive your exam preparations like never before!
