Introduction to banking and types of banking

The video explores the functions of banks and the various types of banks in India. It explains how banks make money through deposits and loans, earning interest in the process. The Reserve Bank of India (RBI) oversees the banking system, while commercial banks, co-operative banks, payment banks, and small finance banks serve different segments of the population. Each type of bank offers unique services, catering to diverse financial needs.

What is the primary way banks earn money?

• By charging fees for account maintenance

• Through the difference between interest earned on loans and interest paid on deposits

• By selling financial products

• Through government subsidies

What is the main function of the Reserve Bank of India?

• To manage foreign exchange

• To offer insurance services

• To regulate and oversee the entire banking system

• To provide loans to the public

Which type of bank is primarily owned by the government?

• Public sector banks

• Co-operative banks

• Private sector banks

• Foreign banks

What is a unique feature of co-operative banks?

• They offer only digital banking services

• They operate on a no profit, no loss basis

• They are not regulated by the RBI

• They are owned by foreign entities

What is a limitation of payment banks?

• They cannot provide loans or credit cards

• They cannot accept deposits

• They are not regulated by the RBI

• They do not offer online banking

What percentage of branches must small finance banks open in rural areas within the first three years?

• 25%

• 10%

• 75%

• 50%

Which type of bank focuses on serving small businesses and low-income households?

• Commercial banks

• Payment banks

• Foreign banks

• Public sector banks