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Understanding Different Types of Banks

October 05, 2024

Understanding Different Types of Banks

In today’s financial landscape, understanding the different types of banks is important for individuals who wish to pursue a career in banking and finance.

Thadomal Shahani Centre of Management’s Certificate in Banking and Finance course is one of the best opportunities for aspiring professionals to study the best of banking.

Let us now look at various types of banks.

Exploring Specific Types of Banks

Banks play a crucial role in the economic system. It is responsible for the financial needs of individuals, businesses, and governments.

The banking sector can be categorized into several types. Each of these types has different functions.

1. Central Banks:

Central banks are the financial backbone of a country. Its functions include regulating the money supply, implementing monetary policy, and maintaining overall economic stability.

A candidate must know the functions of the RBI to understand banking fully. Thadomal Shahani Centre of Management’s Certificate in Banking and Finance course highlights the working of the central bank.

Moreover, the curriculum also elaborates on educating the students on the bank’s impact on inflation, interest rates, and economic growth.

2. Commercial Banks:

Commercial banks are the most common and widely known. They provide various services, including accepting deposits, granting loans, and conducting various financial transactions.

Commercial banks act as the primary connection between individuals and the financial system, which makes them important financial bodies of the economy.

3. Cooperative Banks:

Cooperative banks operate on a cooperative basis, with a primary focus on providing financial services to their members.

These banks are generally small-sized and its members are the owners and the customers of the bank.

4. Development Banks:

Development banks play a crucial role in supporting the economic development of a country.

They provide long-term funding for various developmental projects, including infrastructure and industry.

The Certificate in Banking course syllabus delves into the functions of development banks. It also emphasizes their role in fostering economic growth.

Non-Banking Financial Companies (NBFCs):

NBFCs are financial institutions that offer banking services without meeting the legal definition of a bank.

They play a vital role in providing financial products such as loans, advances, and investments. The functions of the NBFCs are managed by both the Ministry of Corporate Affairs and the Reserve Bank of India.

Choose Thadomal Shahani Centre of Management as Your Top Banking Institute.

Thadomal Shahani Centre of Management’s wealth management course is designed to equip participants with the knowledge and skills essential for a successful career in banking.

The syllabus covers topics such as Introduction to Banking and Finance, Financial Markets and Instruments, Risk Management, and Regulatory Framework that match the evolving demands of the banking sector.

Moreover, selecting the right institute is crucial for a successful career in banking. Thadomal Shahani Centre of Management is one of the top banking institutes that trains a candidate to acquire a successful career in the banking sector.

TSCFM’s experienced faculty gives extensive knowledge about the sector. Additionally, the well-crafted curriculum equips the students with the latest knowledge and skills demanded by the banking sector.

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