Question

Which of the following is NOT a type of commercial bank in India?

• A. Public sector commercial banks
• B. Private sector commercial banks
• C. Cooperative banks
• D. Private foreign commercial banks

Answer 1

Answer:

C. Cooperative banks

The main types of commercial banks in India are

1. Public sector commercial banks (like SBI, PNB, etc.)

2. Private sector commercial banks (like HDFC, ICICI, Axis Bank, etc.)

3. Private foreign commercial banks (like Citibank, HSBC, etc.)

Cooperative banks, while they do provide banking services, are technically not classified as commercial banks. They:

• Function on the cooperative principle

• Operate under a different regulatory framework

• Are registered under the Cooperative Societies Act

• Are usually focused on rural/semi-urban areas

• Have a different ownership structure compared to commercial banks

Cooperative banks are regulated jointly by

• The Reserve Bank of India (RBI)

• The National Bank for Agriculture and Rural Development (NABARD)

• State governments