Presentation on Types of Banking

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Types of BankingBanking is mainly divided into four parts :-

• Retail Banking

• Wholesale Banking

• Universal Banking

• Rural Banking

Retail BankingMeaning:-

• When a bank executes transactions directly with consumers. Retail Banking deals directly with individuals and small businesses.

• It is also known as consumer banking or personal banking.

• Retail Banking aims to be the one stop for as many financial services as possible on behalf of retail clients.

Products and Services:-• Checking and Savings accounts:- Customers are generally Charged a monthly fee

for checking accounts, saving accounts offer higher interest rates than checking account.

• Mortgages on residential and investment properties.

• Debit and Credit Cards:- Retail Banks provide the facility of Debit & Credit cards for easy availability of money.

• Foreign Currency and Remittance services

• Personal and Home Equity Loans:- Retail banks also provide personal & home equity loans for meeting the expenses such as home repairs, medical bills or collage education etc.

Wholesale Banking• Wholesale Banking deals with larger institutions, where as retail banking would

focus more on the individual or smaller business.

• In Simple words, wholesale Banking refers to banking, where large companies or large infrastructure project or government accounts are handled.

• Modern wholesale banks are engaged in finance wholesaling, underwriting, market making, consultancy, mergers and acquisitions, fund management.

Product and Services

• Currency Conversion

• Working capital financing

• Large trade transactions

• Cash Management

• Loan participation

• Merchant banking

• Trust services

Universal Banking

•A banking system in which banks provide a wide variety of financial services, including both commercial and investment services.

• These are also called full-service financial firms although there can also be full service investment banks which provide asset management, trading and underwriting

Products & Services

• Credit

• Loans

• Deposits

• Asset management

• Investment advisory

• Payment processing

• Securities transactions

• Underwriting and financial analysis.

Rural Banking

• Regional Rural Banks are the banking organisations being operated in different states of India.

• These are created to serve the rural areas with banking and financial services.

• Rural banks may have set up branches for urban operations.

• The main purpose of RRB’s is to mobilize financial resources from rural areas and grant loans and advances mostly to small and marginal farmers, agricultural and rural artisans

• Regional Rural Banks were established under the provisions of an ordinance passed on 26 Sept. 1975 and the RRB act. 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors

• Examples are:-

• Allahbad UP Gramin Bank

• Baroda Gujrat Gramin Bank

• Bihar Gramin Bank

• Dena Gujrat Gramin Bank

• Himachal Gramin

• JK Gramin Bank

• Maharashtra Gramin Bank

• Punjab Gramin Bank

• Uttarakhand Gramin Bank

• Odisha Gramin Bank

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