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Commerce · Class 11 Commerce

Ch 11Types of Banks — Class 11 Commerce, concept-first.

A bank is a financial institution that accepts deposits from the public, repayable on demand or otherwise, and uses those funds to lend money to those who need it, earning the difference between the interest it pays on deposits and the interest it charges on loans.

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Key concepts

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Meaning and Definition of a Bank

A bank, as Section 5(b) of the Banking Regulation Act, 1949 defines it, accepts deposits from the public for the purpose of lending or investment, repayable on demand or otherwise.

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Chapter contents

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Meaning and Definition of a Bank

A bank is a financial institution that accepts deposits from the public, repayable on demand or otherwise, and uses those funds to lend money to those who need it, earning the difference between the i…

2

Classification of Banks — An Overview

Banks operating in India can be classified on the basis of ownership, function, and area of operation into the following broad categories:

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Commercial Banks — Public, Private and Foreign

Commercial banks are banks that accept deposits from and lend to the general public and businesses, operating on a commercial (profit-making) basis, subject to RBI regulation under the Banking Regulat…

4

Cooperative Banks — The Three-Tier Structure

Cooperative banks are financial institutions organised on cooperative principles — owned and run by their own members, mainly to serve the credit needs of agriculture, small trade and small-scale indu…

5

Regional Rural Banks (RRBs) and Payments/Small Finance Banks

Regional Rural Banks (RRBs) were set up under the Regional Rural Banks Act, 1976, specifically to bridge the credit gap in rural areas that neither commercial banks nor cooperative banks were adequate…

Exercises

+Show 7 questions7 questions
  1. Q1Define 'banking' as per Section 5(b) of the Banking Regulation Act, 1949, and state the two essential elements of this definition.Free
  2. Q2Classify commercial banks in India on the basis of ownership, giving one example of each.Free
  3. Q3Explain the three-tier structure of cooperative banking in rural India.Free
  4. Q4Who are the owners of a Regional Rural Bank (RRB), and what is the purpose for which RRBs were established?Preview
  5. Q5Distinguish between a Payments Bank and a Small Finance Bank.Preview
  6. Q6"All banks accept deposits, but not all deposit-taking institutions are banks." Explain this statement with reference to the definition of b…Preview
  7. Q7State any three points of difference between Public Sector Banks and Private Sector Banks.Preview

Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 5 questions5 questions
  1. Q1Write any four Post Office savings schemes.Preview
  2. Q2(a) Explain the various types of banks based on the functions. (Any 5) OR (b) Elucidate any five basic concepts of Income Tax.Preview
  3. Q3The Local Area Banks are promoting : (a) Industrial development (b) Rural Savings (c) Agricultural development (d) Business SavingsPreview
  4. Q4______ Banks were nationalised in India in the year 1969. (a) 16 (b) 20 (c) 14 (d) 8Preview
  5. Q5What are Foreign Banks?Preview