The categories of banking institutions in India, distinguished by ownership, function and the degree of services they may offer, all overseen by the RBI under the Banking Regulation Act, 1949.
- Scheduled banks are those listed in the Second Schedule of the RBI Act, 1934, and meet its capital criteria; they enjoy access to RBI refinance and the clearing system.
- Commercial banks include public-sector banks (majority government-owned, such as the State Bank of India), private-sector banks, foreign banks and Regional Rural Banks (RRBs).
- Differentiated banks include concept payment banks (deposits and payments only) and Small Finance Banks (lending to small borrowers and priority sectors).
- Co-operative banks (urban and rural) serve local and agricultural credit needs and are jointly regulated by the RBI and state authorities; NABARD is the apex for rural and agricultural credit.
- The RBI sits at the top as the central bank and is the lender of last resort.
The scheduled-versus-non-scheduled distinction, the list of commercial-bank types, and where payment banks and small finance banks fit are common banking-structure facts.
Scheduled banks (listed in the Second Schedule of the RBI Act) versus public-sector banks (defined by government ownership); these are different bases of classification, so a private bank can still be scheduled.
Banks classed by ownership and function: scheduled and non-scheduled, public, private and foreign commercial banks, RRBs, co-operatives, payment and small finance banks; RBI at the apex.