Admin Team
13 May

1. Comparative Classification of Banking Entities

Entity TypeRegulated by RBI?Main FunctionDeposit AcceptanceLoan FacilityPayment System AccessExamples
Public Sector BanksYesFull commercial bankingYesYesYesState Bank of India, Punjab National Bank
Private Sector BanksYesCommercial banking and retail financeYesYesYesHDFC Bank, ICICI Bank
Foreign Banks in IndiaYesInternational banking operationsYesYesYesHSBC, Standard Chartered
Small Finance BanksYesFinancial inclusion and small borrowersYesYesYesAU Small Finance Bank
Payments BanksYesSmall deposits and digital paymentsYes (limited)No major lendingYesPaytm Payments Bank
Regional Rural Banks (RRBs)YesRural banking and agriculture creditYesYesYesVarious RRBs
Urban Co-operative BanksYesLocal urban co-operative bankingYesYesYesMulti-state UCBs
NBFCsPartially supervisedFinancial lending servicesLimited/ConditionalYesLimitedBajaj Finance, Muthoot Finance
PACSMostly NoAgricultural rural creditLimited to membersYesNoVillage-level PACS
State Bank of SikkimNo direct RBI regulationTreasury and banking for SikkimYesYesLimitedState Bank of Sikkim
REPCO BankLimited RBI oversightBanking for repatriatesYesYesYesREPCO Bank


Entity TypeRBI RegulatedDeposit FacilityLoan FacilityCheque FacilityDemand Draft (DD)NEFTRTGSIMPSUPINet BankingATM/Debit CardCredit CardMain Focus
Public Sector BanksYesYesYesYesYesYesYesYesYesYesYesYesFull-service banking
Private Sector BanksYesYesYesYesYesYesYesYesYesYesYesYesCommercial & retail banking
Foreign BanksYesYesYesYesYesYesYesYesYesYesYesYesInternational banking
Small Finance BanksYesYesYesYesYesYesYesYesYesYesYesLimitedFinancial inclusion
Payments BanksYesYes (limited)No major loansUsually No cheque bookLimited/NoYesLimitedYesYesYesYesNoDigital payments
Regional Rural Banks (RRBs)YesYesYesYesYesYesYesYesYesBasic facilitiesYesLimitedRural banking
Urban Co-operative BanksYesYesYesYesYesYesYesLimitedLimitedBasic facilitiesYesLimitedCommunity banking
NBFCsPartially supervisedLimitedYesNoNoNoNoNoLimited wallet-typeLimitedNoSome issue cardsSpecialized lending
PACSMostly NoLimited (members only)YesNoNoNoNoNoNoNoNoNoAgricultural credit
State Bank of SikkimSpecial caseYesYesYesYesLimitedLimitedLimitedLimitedLimitedYesLimitedState treasury banking
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