Commercial bank: definition, history, types, functions and role
A commercial bank is a financial institution that accepts deposits and offers loans to individuals and businesses including mortgages, auto loans, business loans, personal loans, deposit accounts such as checking, savings, custodial accounts, and collections.
The history of commercial banks in India goes back to the 18th century with the establishment of the Bank of Bengal in Calcutta.
The types of commercial banks include Public Sector Banks, Private Sector Banks, Foreign Banks, and Regional Rural Banks.
The functions of commercial banks include accepting deposits, granting loans and advances, discounting bills of exchange, creating credit, transferring electronic funds, providing overdraft facilities, providing foreign exchange services, etc. Commercial banks play a major part in the agricultural credit supply by financing the agricultural sector.
What is a commercial bank?
A commercial bank is a financial institution that provides services like loans, certificates of deposits, savings bank accounts bank overdrafts, etc. to its customers, according to Economic Times.
Simply speaking, a commercial bank is a financial institution that accepts deposits and offers loans to businesses and individuals.
Commercial banks make money by accepting deposits at lower interest and lending loans to individuals and businesses at high interest. Business loans, car loans, house loans, personal loans, and education loans are some of the loans offered by commercial banks.
Commercial banks help a country’s economy by creating capital, credit, and liquidity in the market and generally have physical branches. But, nowadays online commercial banks like DBS banks are growing in numbers and providing all the bank services online to their customers without any physical branches.
There are a total of 158,000 commercial bank offices across India and out of this 44,000 offices are in southern India, as per reports by Statista article titled “Number of scheduled commercial bank offices across India in the financial year 2023, by region“.
What is the history of commercial banks in India?
The history of commercial banking in India is traced back to the late 18th century when European trading companies established banks. However, in India, the evolution of commercial banks is divided into a pre-independence era, post-independence, liberalization, consolidation, and regulatory changes, and the current landscape for better understanding.
The evolution of commercial banks in India is listed below.
- Pre-independence era (pre-1947): The Pre-independence era of the Indian banking system led to the establishment of two banks, The Bank of Hindustan in 1770 and the General Bank of India in 1786. The Bank of Calcutta was established in 1806 which later merged with the Bank of Bombay and the Bank of Madras in 1921 to form the Imperial Bank of India which later became State Bank of India in 1955.
- Post-independence and nationalization (1947-1969): After Independence, several banking reforms were made to foster India’s economic development under the regulatory framework provided by the Banking Regulation Act of 1949. Further, In 1869, 14 major banks were nationalized by the government of India to increase cash flow to the agricultural and small-scale industries.
- Liberalization and technological advancements (1991 onward): The liberalization in 1991 made a reformation to the financial sectors in India and promoted efficiency and competition. This opened gates for the private and foreign banks creating more competition and innovation leading to technological advancements introducing online banking services.
- Consolidation and regulatory changes (2000s onward): After 2000, several acquisitions and mergers of the banks consolidated banks leading to enhanced efficiency and scale. RBI also introduced new BASEL regulations.
- Current landscape (2020s onward): The current commercial banking landscape is all about digital and mobile banking which has made banking at the fingertips. However, with so many tech advancements in the banking sector, cybersecurity risks are still there.
What is the structure of commercial banks in India?
Generally, the structure of commercial includes Public Sector Banks, Private Sector Banks, Foreign Banks, and Regional Rural Banks. Recently RBI licensed a few more banks known as Payments Banks and Small Finance Banks.
What is the importance of commercial banks?
The importance of commercial banks in India is listed below.
- Providing funds for rural and agricultural development: Commercial banks offer funds to farmers to purchase seeds, cultivate crops, and buy tractors, fertilizers, and other farming tools. 86 percent of Indian farmers are small and marginal farmers, and agriculture, animal husbandry, and fisheries contribute to around 18% of India’s GDP, according to the “Press Information Bureau, Government of India“. The commercial banks have launched several financial services designed for the development of rural sectors. For example, the State Bank of India (SBI), offers specialized agricultural loans, saving accounts, and Kisan credit cards to increase the customer base in rural India.
- Providing funds to women entrepreneurs: Commercial banks offer funds to women entrepreneurs to women entrepreneurs to start their own businesses, empower them financially, and make them independent. Simply speaking, they help women entrepreneurs get the resources, means, and support they need for their businesses. State Bank of India (SBI), one of India’s largest commercial banks has also launched a scheme named Svyam Siddha scheme to offer personal loans up to 5 lakh to women from smaller towns and rural villages who are professionals, salaried or self-employed as teacher, doctor, nurse, C.A. ICWA, CS, etc., as per article titled “Swayamsiddha Loan Scheme” by cosmosbank.
- Financing small businesses: Start-ups and small businesses need cash flow to grow and contribute to economic development. Commercial banks provide financial support to these startups and small businesses by offering Micro, Small, and Medium Enterprises loans and Small Medium enterprises loans. “Micro, Small and Medium Enterprises (MSME) sector, with more than 6.30 crore enterprises, has emerged as a highly vibrant and dynamic sector of the Indian economy“, as per Ministry of Micro, Small & Medium Enterprises, India. The recently launched PM Vishwakarma Scheme is the latest scheme that supports artisans and craftsmen in improving the quality and reach of their products.
- Creation of credit for entrepreneurial development: Commercial banks create credit for businesses to buy equipment, build inventory, and pay their vendors helping them boost their business without actually having the funds with themselves. Commercial banks also offer loans and small business credit cards and buy securities. Lack of initial capital is one of the most important major problems faced by entrepreneurs in obtaining loans from the banks, as per the International Journal of Engineering and Management Research titled “Banks Plays a Pivotal Role in Entrepreneurship Development” by Dr. Anand. K et. al.
- Motivating people for savings to create capital: Motivating people to save a part of their income in a bank account not only creates wealth for people but also creates enormous capital for commercial banks to fund loans for small and medium-sized companies to expand their businesses, and create more jobs.
Which is the largest commercial bank in India?
The State Bank of India also referred to as SBI is the largest and oldest commercial bank in India. The SBI has more than 24 thousand branches across India and 190 branches in 36 foreign countries.
What are the examples of commercial banks?
The examples of commercial banks are the State Bank of India (SBI), Bank of Baroda, HDFC Bank, Bank of India, Kotak Mahindra Bank, ICICI Bank, Axis Bank, and Canara Bank. The commercial banks include all the public sector banks, private banks, foreign banks, and regional rural banks.
What are the objectives of a commercial bank?
The objectives of a commercial bank include profit maximization, risk management, treasury management, liquidity management, obtaining savings, wealth management, credit and financing, money flow, granting loans, and facilitating payments. Commercial banks help to promote investment in production, entrepreneurship, and cultural innovation.
What are the types of commercial banks?
There are seven types of commercial banks in India that include public sector banks (PSBs), private sector banks, foreign banks, and regional rural banks. Overall, there are 33 private and public sector licensed banks in India, according to Statista article titled “Number of banks across India as of November 2023, by type,”.
The types of commercial banks in India are listed below.
1. Public Sector Banks (PSBs):
Public sector banks (PSBs) also known as government banks or nationalized banks are those banks in which the majority of the stake is owned by the government either directly or through other government agencies, usually at least 51%. These banks were formed when private banks were nationalized in 1969 and 1980 with the aim to expand banking services to unbanked areas that had not been reached before or had missed out on economic programming.
PSBs are the backbone of India’s banking system with extensive branch networks that play a huge role in implementing government schemes, providing priority sector loans, and serving the mass market.
State Bank of India (SBI) is the largest and oldest public sector bank in India. The Indian banking system consists of 13 public sector banks, with a total asset size of US$ 1861.72 billion in 2024, as per the article titled, “Banking Sector in India” published by India Brand Equity Foundation (IBEF).
The list of public sector banks with their headquarters is listed in the below table.
| Bank | Headquarter |
|---|---|
| State Bank of India | Mumbai |
| Bank of Baroda | Vadodara |
| Punjab National Bank | New Delhi |
| Union Bank of India | Mumbai |
| Indian Overseas Bank | Chennai |
| Canara Bank | Bengaluru |
| Indian Bank | Chennai |
| UCO Bank | Kolkata |
| Bank of India | Mumbai |
| Central Bank of India | Mumbai |
| Bank of Maharashtra | Pune |
| Punjab & Sind Bank | New Delhi |
2. Private sector banks
Private sector banks are those banks owned by a private company, individual, or group of people and are free to operate based on market forces and make independent decisions. These banks follow the regulations set by the central bank, such as the Reserve Bank of India in India.
The primary goal of a private bank is to maximize profits, focus on putting customers first, and manage risks efficiently.
The list of private sector banks in India with their headquarters city is given in the table below.
| Bank name | Headquarter |
|---|---|
| HDFC Bank | Mumbai |
| ICICI Bank | Mumbai |
| Kotak Mahindra | Mumbai |
| Axis Bank | Mumbai |
| IndusInd Bank | Pune |
| IDBI Bank | Mumbai |
| IDFC First Bank | Mumbai |
| Yes Bank | Mumbai |
| AU Small Finance Bank | Jaipur |
| Bandhan Bank | Kolkata |
| Federal Bank | Aluva |
| RBL Bank | Mumbai |
| Jammu & Kashmir Bank | Srinagar |
| Karur Vysya Bank | Karur |
| City Union Bank | Kumbakonam |
| Karnataka Bank | Mangaluru |
| Tamilnad Mercantile Bank | Thoothukudi |
| CSB Bank | Thrissur |
| South Indian Bank | Thrissur |
| DCB Bank | Mumbai |
| Dhanlaxmi Bank | Thrissur |
| Lakshmi Vilas Bank | Chennai |
3. Foreign banks
Foreign banks are those banks headquartered in a different country but have operations and provide financial services, including lending, borrowing, deposits, and accounts in India. These banks follow the rules of their home country and the country where they operate as banks or as subsidiaries.
The foreign banks are important because they provide competition in the banking sector by improving services, attracting foreign investment, and providing access to the global market.
The popular foreign banks in India include CitiBank, HSBC and Standard Chartered Bank, BNP Paribas, DBS Bank, and Barclays Bank.
The list of all the foreign banks operating in India with their headquarters is in the below table.
| Name of the Bank | Headquarter |
|---|---|
| AB Bank Ltd. | Dhaka, Bangladesh |
| Abu Dhabi Commercial Bank Ltd | Abu Dhabi, United Arab Emirates |
| American Express Banking Corporation | New York, United States |
| Australia and New Zealand Banking Group Ltd. | Melbourne, Australia |
| Barclays Bank Plc | London, United Kingdom |
| Bank of America | Charlotte, North Carolina, United States |
| Bank of Bahrain & Kuwait BSC | Manama, Bahrain |
| Bank of Ceylon | Colombo, Sri Lanka |
| Bank of China | Beijing, China |
| Bank of Nova Scotia | Toronto, Canada |
| BNP Paribas | Paris, France |
| Citibank N.A | New York, United States |
| Rabobank | Utrecht, Netherlands |
| Credit Agricole Corporate & Investment Bank | Paris, France |
| Credit Suisse A.G | Zürich, Switzerland |
| CTBC Bank Co. Ltd. | Nangang District, Taipei, Taiwan |
| DBS Bank India Limited | Singapore |
| Deutsche Bank | Frankfurt, Germany |
| Doha Bank | Doha, Qatar |
| Emirates Bank NBD | Dubai, United Arab Emirates |
| First Abu Dhabi Bank | Abu Dhabi, United Arab Emirates |
| FirstRand Bank Ltd | Johannesburg, South Africa |
| HSBC Ltd | London, England, UK |
| Industrial & Commercial Bank of China Ltd. | Xicheng District, Beijing, China |
| Industrial Bank of Korea | Jung-gu, Seoul, South Korea |
| J.P. Morgan Chase Bank N.A. | New York, USA |
| JSC VTB Bank | Moscow, Russia |
| KEB Hana Bank | Seoul, South Korea |
| Kookmin Bank | Seoul, South Korea |
| Krung Thai Bank Public Co. Ltd. | Watthana, Bangkok, Thailand |
| Mashreq Bank PSC | Dubai, United Arab Emirates |
| Mizuho Bank Ltd. | Chiyoda City, Tokyo, Japan |
| MUFG Bank, Ltd. | Chiyoda City, Tokyo, Japan |
| NatWest Markets Plc | London, United Kingdom |
| PT Bank Maybank Indonesia TBK | Senayan, Jakarta, Indonesia |
| Qatar National Bank (Q.P.S.C.) | Doha, Qatar |
| Sberbank | Moscow, Russia |
| SBM Bank (India) Limited | Port Louis, Mauritius |
| Shinhan Bank | Jung-gu, Seoul, South Korea |
| Societe Generale | Paris, France |
| Sonali Bank Ltd. | Dhaka, Bangladesh |
| Standard Chartered Bank | London, England, UK |
| Sumitomo Mitsui Banking Corporation | Chiyoda City, Tokyo, Japan |
| United Overseas Bank Ltd | Singapore |
| Westpac Banking Corporation | Sydney, Australia |
| Woori Bank | Jung-gu, Seoul, South Korea |
4. Regional rural banks (RRBs)
Regional rural banks (RRBs) are scheduled commercial banks that operate at the regional level in different states of India and are owned by the Ministry of Finance, the Government of India, Sponsored Bank, and the State Government in the ratio of 50:35:15 respectively.
Regional rural banks offer basic financial services including retail banking, corporate banking, investment banking, mortgage loans, debit cards, internet banking, mobile banking, finance, and insurance.
RRBs are the main source of finance for agricultural, small-scale industries, and micro-enterprises, leading to rural economic development.
The list of regional rural banks (RRBs), their sponsor bank, and the state they operate are given in the below table.
| Regional Rural Bank | Sponsor Bank | State |
|---|---|---|
| Andhra Pragathi Grameena Bank | Canara Bank | Andhra Pradesh |
| Chaitanya Godavari Grameena Bank | Union Bank of India | Andhra Pradesh |
| Saptagiri Grameena Bank | Indian Bank | Andhra Pradesh |
| Arunachal Pradesh Rural Bank | State Bank of India | Arunachal Pradesh |
| Assam Gramin Vikash Bank | Punjab National Bank | Assam |
| Dakshin Bihar Gramin Bank | Punjab National Bank | Bihar |
| Uttar Bihar Gramin Bank | Central Bank of India | Bihar |
| Chhattisgarh Rajya Gramin Bank | State Bank of India | Chhattisgarh |
| Baroda Gujarat Gramin Bank | Bank of Baroda | Gujarat |
| Saurashtra Gramin Bank | State Bank of India | Gujarat |
| Sarva Haryana Gramin Bank | Punjab National Bank | Haryana |
| Himachal Pradesh Gramin Bank | Punjab National Bank | Himachal Pradesh |
| Ellaquai Dehati Bank | State Bank of India | Jammu & Kashmir |
| J&K Grameen Bank | J&K Bank Ltd. | Jammu & Kashmir |
| Jharkhand Rajya Gramin Bank | State Bank of India | Jharkhand |
| Karnataka Gramin Bank | Canara Bank | Karnataka |
| Karnataka Vikas Grameena Bank | Canara Bank | Karnataka |
| Kerala Gramin Bank | Canara Bank | Kerala |
| Madhya Pradesh Gramin Bank | Bank of India | Madhya Pradesh |
| Madhyanchal Gramin Bank | State Bank of India | Madhya Pradesh |
| Maharashtra Gramin Bank | Bank of Maharashtra | Maharashtra |
| Vidharbha Konkan Gramin Bank | Bank of India | Maharashtra |
| Manipur Rural Bank | Punjab National Bank | Manipur |
| Meghalaya Rural Bank | State Bank of India | Meghalaya |
| Mizoram Rural Bank | State Bank of India | Mizoram |
| Nagaland Rural Bank | State Bank of India | Nagaland |
| Odisha Gramya Bank | Indian Overseas Bank | Odisha |
| Utkal Grameen Bank | State Bank of India | Odisha |
| Puduvai Bharthiar Grama Bank | Indian Bank | Puducherry |
| Punjab Gramin Bank | Punjab National Bank | Punjab |
| Baroda Rajasthan Kshetriya Gramin Bank | Bank of Baroda | Rajasthan |
| Rajasthan Marudhara Gramin Bank | State Bank of India | Rajasthan |
| Tamil Nadu Grama Bank | Indian Bank | Tamil Nadu |
| Andhra Pradesh Grameena Vikas Bank | State Bank of India | Telangana |
| Telangana Grameena Bank | State Bank of India | Telangana |
| Tripura Gramin Bank | Punjab National Bank | Tripura |
| Aryavart Bank | Bank of India | Uttar Pradesh |
| Baroda UP Bank | Bank of Baroda | Uttar Pradesh |
| Prathama UP Gramin Bank | Punjab National Bank | Uttar Pradesh |
| Uttarakhand Gramin Bank | State Bank of India | Uttarakhand |
| Bangiya Gramin Vikash Bank | Punjab National Bank | West Bengal |
| Paschim Banga Gramin Bank | UCO Bank | West Bengal |
| Uttar Banga Kshetriya Gramin Bank | Central Bank of India | West Bengal |
5. Payment banks
Payment banks are those banks that offer financial and payment services to low-income households, small businesses, and migratory workers and are regulated by the Reserve Bank of India (RBI). These banks are technology-driven and only accept deposits limited to a certain amount.
The payment banks only offer services like digital passbooks, virtual debit cards, and money transfers and don’t issue credit or loans.
The list of payment banks in India with their headquarters is given in the table below.
| Name of the Bank | Headquarter |
|---|---|
| Fino Payments Bank | Mumbai |
| India Post Payment Bank | New Delhi |
| Airtel Payments Bank | New Delhi |
| NSDL Payments Bank | Mumbai |
| Paytm Payments Bank | New Delhi |
| Jio Payments Bank | New Delhi |
6. Small finance banks
Small finance banks (SFBs) are financial institutions providing basic banking services to underserved communities. These banks’ SFBs focus on small business units, micro and small industries, marginal farmers, and unorganized sectors offering services including deposits, lending, savings accounts, fixed deposits, recurring deposits (RD), and customized savings schemes.
The list of small finance banks with their headquarters is given in the table below.
| Name of the Bank | Headquarter |
|---|---|
| ESAF Small Finance Bank | Thrissur, Kerala |
| Equitas Small Finance Bank | Chennai, Tamil Nadu |
| Suryoday Small Finance Bank Ltd. | Belapur, Navi Mumbai |
| Ujjivan Small Finance Bank | Bengaluru, Karnataka |
| AU Small Finance Bank | Jaipur, Rajasthan |
| Jana Small Finance Bank | Bengaluru, Karnataka |
| Fincare Small Finance Bank | Bengaluru, Karnataka |
| Capital Small Finance Bank | Jalandhar, Punjab |
| Utkarsh Small Finance Bank | Varanasi, UP |
| North East Small Finance Bank | Guwahati, Assam |
What are the functions of commercial banks in India?
The functions of commercial banks are listed below.
- Accepting deposits: This is the primary function of a commercial bank. Commercial banks accept various types of deposits, such as savings, current, and fixed deposits.
- Granting loans and advances: Commercial banks lend money to borrowers in the form of home loans, vehicle loans, personal loans, business loans, etc.
- Credit cash: Credit creation is a primary activity of commercial banks, and by lending loans and advances to the general population, they actually supply money equivalent to living expenses or investments. Banks simply make a deposit in the borrower’s account rather than giving out physical cash as loan funds. Credit creation is very important because it will result in more funds being available for investment and consumption in the economy.
- Discounting bills of exchange: A bill of exchange is an agreement on paper acknowledging the amount of money to be paid against the goods purchased at a given point in time in the future. Banks use discounting methods to clear these dues before the quoted time.
- Providing overdraft facilities: An overdraft is a banking facility that allows customers to temporarily overdraw from their checking accounts. This service is designed to cover short-term cash deficiencies. Banks set a customer’s maximum overdraft limit by considering his creditworthiness and account history.
- Investment in securities: Securities are financial instruments that represent an ownership interest (stocks) or a debt claim (bonds) in a company or government. Commercial banks, act as brokers and facilitate the buying and selling of securities on behalf of their clients (investors).
- Locker facilities: The Bank provides locker facilities for the safekeeping of valuables like jewelry, important documents (property deeds, wills, etc.), and other precious items. But, it also charges an annual fee for the use of a locker, which varies based on the size of the locker and the bank’s location.
- Paying and gathering the credit: It refers to the process of extending credit (lending money) and then collecting the funds back from the borrower. Instruments used in this process include Promissory Notes, Cheques, and Bills of Exchange.
What are the primary functions of a commercial bank?
The primary functions of a commercial bank are accepting deposits as savings, current, or time deposits, and lending funds in the form of loans and cash credit.
What are the secondary functions of a commercial bank?
The secondary functions of a commercial bank include the collection of bills of exchange and cheques, providing foreign exchange, locker facilities for safe keeping of valuable items, and acting as a collection center of income by collecting dividends, salaries, pensions, rents, and interests on investments for their customers.
What is the role of a commercial bank?
The role of a commercial bank includes providing funding to commercial ventures to hire employees, expand their business, and become a profitable organization. They also provide credit that allows so many companies to operate seamlessly.
Commercial banks help in the successful implementation of monetary policies. They also offer agency services, overdraft facilities, and other solutions to wholesale and retail businesses to accelerate trade.
What are the major assets of commercial banks?
The major assets of commercial banks include loans, marketable securities, reserves of base money, held with the central bank in the form of bank notes, coins, or in the form of a credit (deposit) balance, as per an article published by George A. Selgin on Britannica Money on Jan. 21, 2025.
The major assets of commercial banks are listed below.
- Cash and Reserves: This includes physical currency held by the bank and deposits held at the central bank.
- Investments: This includes putting money into assets to obtain further returns in the future. It also includes government securities, company shares, corporate bonds, and other types of stock holding.
- Loans: This is typically the largest asset category and encompasses various types of loans including personal loans, home loans, business loans, and auto loans.
- Property and equipment: This includes bank buildings, technology infrastructure, real estate,e or other financial instruments.
- Interest: This includes interest from consumer loans and other assets.
- Fees: This includes general fees that a bank charges from its customers.
What are the strategies for making commercial banks viable?
The strategies for making commercial banks viable are listed below.
- Diversification of revenue streams: Expansion of bank services into different revenue-generating streams like investment banking, wealth management, insurance, and digital financial services, diversifying the risk and creating multiple sources of income generation. For instance, a bank offers brokerage services, wealth management advice, and online banking platforms alongside traditional loans.
- Implementation of effective risk management practices to minimize losses: The risk management practices help banks to prevent losses and maintain financial stability. The effective risk management practices include credit risk management (assessment of borrowers’ creditworthiness to minimize loan defaults), market risk management (hedging against fluctuations in interest rates), and operational risk management (implementing robust internal controls to prevent fraud, errors, and system failures).
- Adoption of innovative technologies to enhance efficiency and reduce costs: Technology is transforming the banking industry and continuous digital innovation enhances efficiency, reduces costs, and improves customer experience. The examples of adoption of innovative technology include online and mobile banking services, artificial intelligence (AI) and machine learning to automate tasks, detect fraud, and provide personalized financial advice, and blockchain technology to streamline payment processes and improve security.
- Maintaining a strong capital base to withstand economic fluctuations: A strong capital base allows banks to absorb unexpected losses, withhold economic downturns, and continue lending activities. For instance, banks raise capital by issuing new shares, retaining earnings, and seeking investments from other institutions.
- Developing and providing strong customer relationships and service: Building trust and loyalty with customers is paramount, and strong customer relationships and excellent customer service, attract and retain customers. For instance, banks offer personalized financial advice, provide responsive customer support, and use customer feedback to improve products and services.
What is the difference between Scheduled Commercial Banks and Non-Scheduled Commercial Banks?
The differences between scheduled commercial banks and non-scheduled commercial banks are given in the table below.
| Criteria | Scheduled Commercial Banks | Non-Scheduled Commercial Banks |
| Definition | Scheduled Commercial banks are those banks that are listed in the Second Schedule of the RBI Act, 1934. | Scheduled Commercial banks are those banks that are listed in the Second Schedule of the RBI Act, 1934. |
| Paid-Up Capital | Minimum paid-up capital of Rs. 5 lakhs or more. | Paid-up capital is less than Rs. 5 lakhs. |
| Regulation | Strictly regulated by the Reserve Bank of India (RBI). | Not strictly regulated by the RBI. |
| Borrowing from RBI | Eligible to borrow funds from RBI for regular banking purposes. | Not authorized to borrow from RBI except in emergencies. |
| Cash Reserve Ratio (CRR) | Required to maintain CRR with RBI. | Can maintain CRR with themselves. |
| Membership in Clearing House | Eligible for membership in the clearing house. | Not eligible for membership in the clearing house. |
| Examples | State Bank of India, HDFC Bank, Bank of Baroda. | Local area banks, State Cooperative Banks. |
| Safety and Security | Generally considered safe and secure. | Perceived as riskier compared to scheduled banks. |
| Return on Deposits | Typically offer higher returns to depositors. | May offer lower returns compared to scheduled banks. |
