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Tamil Nadu Board of Secondary EducationHSC Commerce Class 11

Types of Bank

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  • Stakeholders in Commercial Organisations
    • Meaning of Stakeholders
    • Distinction Between Stakeholders and Shareholders
    • Distinction Between Stakeholders and Customers
    • Internal and External Stakeholders
    • Expectations of Stakeholders
    • Stakeholders Analysis
  • Marketing
  • Marketing and Sales
  • Advertising and Sales Promotion
    • Advertising
    • Objectives of Advertising
    • Importance and Merits of Advertising
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  • Finance and Accounting
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  • Costs
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    • Budgeting
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    • Concept of Cash Flow Statement
    • Distinction Between Funds Flow Statement and Cash Flow Statement
  • Sources of Finance
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  • Industrial Relations, Trade Unions and Social Security
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    • Problems of Trade Unions in India
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    • Concept of Social Security
    • Scope of Social Security
    • Social Security in India
  • Logistics
  • Logistics and Insurance
  • Banking
    • Banking
    • Types of Bank
    • Functions of a Central Bank
    • Control of Credit by Reserve Bank of India
    • Role of Banks in Economic Development
    • Advantages of Opening a Bank Account
    • Electronic Banking (E-Banking) - ATM, Credit and Debit Cards
    • Financial Fraudulent Practices
  • Government Initiatives in Environment Protection
    • Community Participation and Public Awareness
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Estimated time: 8 minutes
  • Table: Types of Bank
  • Key Points: Types of Bank
CISCE: Class 12

Table: Types of Bank

Type of Bank Main Purpose Loan Tenure Key Example(s)
Central Bank Apex regulator; issues currency (not a lending bank) Reserve Bank of India (RBI)
Commercial Bank Accepts deposits; general lending Short-term SBI, HDFC Bank, PNB
Cooperative Bank Credit to members; agriculture & small trade Short & medium District Central Coop. Banks
Regional Rural Bank (RRB) Rural financial inclusion Short & medium Aryavart Bank, Baroda UP Bank
Land Development Bank Long-term credit for agriculture Long-term State Land Dev. Banks
Exchange Bank / Forex Bank Foreign trade finance; foreign exchange Short-term HSBC, Standard Chartered
EXIM Bank Finance for exporters & importers Long-term Export-Import Bank of India
Development Bank Industrial & infrastructure development Long-term SIDBI, IFCI, NABARD
Savings Bank Promote saving habits; small depositors N/A Post Office Savings Bank
International Bank Loans to nations for development projects Long-term World Bank, IMF, IDA
Small Finance Bank Financial inclusion for small borrowers Short & medium AU Small Finance Bank
Payments Bank Basic banking; no credit N/A Airtel Payments Bank
CISCE: Class 12

Key Points: Types of Bank

  • Banks are financial intermediaries — they connect savers and borrowers, fuelling the economy.
  • RBI is the apex bank of India — it regulates all other banks, issues currency, and manages monetary policy.
  • Commercial banks (such as SBI and HDFC) are the most common — they serve the general public for everyday banking needs.
  • Cooperative and RRBs serve rural India and weaker sections, providing affordable credit.
  • EXIM Bank (est. 1982) exclusively supports India's international trade through long-term finance.
  • Development Banks like SIDBI and NABARD drive industrial and agricultural growth by providing long-term capital.
  • Modern additions — Small Finance Banks and Payments Banks — ensure financial inclusion for India's last-mile population.

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