1. Commercial Banks: Commercial Banks are institutions dealing in money. These are governed by Indian Banking Regulation Act, 1949. There are two types of commercial banks, Public sectors and private sector banks. There are 20 nationalized bank. Public sector banks like SBi; PNB, IOB etc, and other private sector banks represented by HDFC bank, ICICI Bank, Kotak Mahindra Bank and Jammu and Kashmir Bank etc.

2. Cooperative Banks: Cooperative banks are organised under the provision of State Cooperative Societies Act meant essentially for providing cheap credit to their members. It is an important source of rural credit e.g. agricultural financing in India.

3. Specialized Banks : Specialized banks are foreign exchange banks, industrial banks, development banks, export-import banks etc. catering to specific needs of these unique activities.

4. Central Bank : The Central Bank of any country supervises, controls and regulates the activities of all the commercial banks of that country. It also acts a government banker. It controls and coordinates currency and credit policies of any country. Reserve Bank of India is the central bank of our country.