What is Cryptocurrency A new word emerged in our lives two months after the beginning of the recession of 2008 and gradually transformed from a vague expression ("virtual coin") to the vocabulary used to characterize the new economy. On June 9, 2009 the first bitcoin was released by an anonymous person called Satoshi Nakamoto. For different reasons like the sub-prime crisis, Nakamoto, claimed he is a Japanese man in his 30's, said he gave the open protocol in 2007. Today the new coin is called a "Digital Asset" and decentralization is the principal idea behind it: there's no main institution responsible for regulating it. The most familiar and traded form of Blockchain's technology, Bitcoin, who has crossed the $15,000 lines way back and has shows an image of exponential increase in the past few months. The great advantage of blockchain technology is that it doesn't have to keep records for a large central computer or big managing company. With this ...
Classification of Banks-World
Banks have developed over time, many banks were founded to serve specific goals, some were founded to serve special category of people. So, it’s important to understand what are the types of banks or how are they categorized and how they perform.
We can categorize them into six sectors
- Commercial Banks
- Exchange Banks
- Industrial Banks
- Agricultural or Co-operative Bank
- Saving Bank
- Central Bank
Commercial Banks
Everyone is aware of this type, here anyone with an account can deposit, request loan, earn interest on deposit and other services of banks. They earn money from the interest of loans which they have provided to consumers. They also provide many services like ATM, CDM, electronic banking system, phone banking, etc.
Industrial and Commercial Bank of China is the largest commercial bank in the world with assets valuation of US$4027.44 Billion
Exchange Banks
Exchange bank facilitate import and export goods of their country, when someone imports goods from different country they receive that goods via exchange banks. They also finance movement of internal trade within their country. They also regulate the foreign currency exchange rate.
JP Morgan is the largest exchange bank in the world with market share of 9.81%
Industrial Banks
Industrial bank provides long term loan to companies, they usually have depositors who deposit funds for long term, as they provide loan for large span of time they require a capital of their own to function, mostly they are not regulated like other banks and are state-charted and owned by commercial firms.
Industrial and Commercial Bank of China is also the largest industrial bank in the world with assets valuation of US$4027.44 Billion.
Agricultural or Co-operative Bank
Main function of agricultural bank is to provide loans to farmers for agricultural activities, long term and short-term loans are provided by banks to consumers, short term loans are mostly finance by co-operative society and long term by high capital mortgage banks.
Saving Bank
Mostly all commercial bank has created a small sector in their bank as saving sector. Idea behind saving bank is to provide some benefit to depositor to help them earn some interest on their deposits, scheme such as these also attracts new deposits.
Central Bank
Central bank is bank of banks, it is owned by government and exist almost in every country around the globe, function of central bank is to issue currency, provide stability to banking structure, lender of last resort to commercial bank, lender of last resort to government and provide monetary policy.
Banks in India are classified into four different ways:
Commercial Banks
Public Sector Bank
They are nationalized banks and has maximum market share in the total banking business of India, there are 20 Nationalized banks in India. Examples: State Bank of India, Bank of India, Central Bank of India, Bank of Maharashtra, Andhra Bank.
Private Sector Bank
These banks have majority of there share held by private shareholder, all private sector bank works on regulations provided by RBI. Examples: HDFC Bank, ICICI Bank, YES Bank, Kotak Mahindra Bank.
Foreign Bank
These banks have their headquarters into their respective countries and operates in other countries as private entity. Foreign banks in India have to follow the guide line of RBI as well as their guidelines of their countries. Examples: Deutsche Bank, HSBC Bank, Bank of America, Citibank
Regional Rural Bank
These banks are established on purpose of providing loans to weaker section of society like farmers, labours, etc. They mostly operate around specified region and also provides all commercial banking facilities.
Small Finance Bank
These banks provide loans to sectors of society which cannot access loan, because of unorganized sector, MSME’s and small farmers. These banks also operate under the guideline of RBI. Example: Equitas Small Finance Bank Ltd, Ujjivan Small Finance Bank Ltd.
Payments Bank
They are very new banking system, emerged only 4-5 years to boost online payments, mobile-banking, net-banking, debit cards. They too operate under the guidelines of RBI and are restricted to operate under ₹1 Lakh per customer. Account opening procedure is made simple for them and can be finished within few minutes. Example: Paytm Payments Bank, Jio Payments Bank, Airtel Payments Bank.
Co-operative Bank
Urban Co-operative Bank
These banks are usually located in Urban and Semi-urban region and provide loans to small vendors and farmers. They follow guidelines of RBI. Majority of these banks are located in Andhra Pradesh, Gujrat, Maharashtra, Karnataka and Tamil Nadu
State Co-operative Bank
The state cooperative bank may be a federation of the central cooperative bank and acts as custodian of the cooperative banking structure within the State. Its funds are obtained from the social capital, deposits, loans and overdrafts of the Federal Reserve Bank of India. State-owned cooperative banks lend money to cooperative central banks and to primary companies and indirectly to farmers.
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