“How many public sector banks are there?” “Who regulates RRBs?” “What makes a bank scheduled?” These are classic questions in IBPS, SBI and RBI exams. This guide maps the full structure of Indian banking in one place.
The big picture
| Level | Who |
|---|---|
| Central bank | Reserve Bank of India (est. 1 April 1935; nationalised 1 January 1949) |
| Scheduled banks | Listed in the Second Schedule of the RBI Act, 1934 |
| Non-scheduled banks | Not in the Second Schedule (mostly small co-operative banks) |
Scheduled banks are further split into scheduled commercial banks and scheduled co-operative banks.
What makes a bank “scheduled”?
A bank is included in the Second Schedule under Section 42(6) of the RBI Act if:
- its paid-up capital and reserves are at least ₹5 lakh, and
- RBI is satisfied that its affairs are not run against depositors’ interests.
Scheduled banks can borrow from RBI (repo, MSF) and must maintain CRR with RBI.
Scheduled commercial banks
| Type | Count (approx, latest) | Examples |
|---|---|---|
| Public sector banks (PSBs) | 12 | SBI, Punjab National Bank, Bank of Baroda, Canara Bank |
| Private sector banks | 21 (approx) | HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank |
| Foreign banks | 44 (approx, branches in India) | Citibank, HSBC, Standard Chartered, DBS (subsidiary) |
| Regional Rural Banks (RRBs) | 28 | Sponsored by PSBs |
| Small Finance Banks (SFBs) | 11 (approx) | AU, Equitas, Ujjivan, Jana |
| Payments Banks | 5 operational (approx) | Airtel, India Post, Fino, Jio, NSDL |
| Local Area Banks | 1–2 (approx) | Coastal Local Area Bank |
Counts change with mergers, licences and conversions. Private bank and foreign bank counts are approximate.
The 12 public sector banks
After the mega-merger of April 2020, India has 12 PSBs:
| Bank | Headquarters |
|---|---|
| State Bank of India | Mumbai |
| Punjab National Bank | New Delhi |
| Bank of Baroda | Vadodara |
| Canara Bank | Bengaluru |
| Union Bank of India | Mumbai |
| Bank of India | Mumbai |
| Indian Bank | Chennai |
| Central Bank of India | Mumbai |
| Indian Overseas Bank | Chennai |
| UCO Bank | Kolkata |
| Bank of Maharashtra | Pune |
| Punjab & Sind Bank | New Delhi |
IDBI Bank is classified by RBI as a private sector bank since January 2019 (after LIC became majority owner); its strategic sale has been under way.
History of nationalisation
| Date | Event |
|---|---|
| 1955 | Imperial Bank of India became State Bank of India |
| 19 July 1969 | 14 banks nationalised (deposits over ₹50 crore) |
| 15 April 1980 | 6 more banks nationalised (deposits over ₹200 crore) |
| 2017 | SBI merged its 5 associate banks and Bharatiya Mahila Bank |
| 2019 | Vijaya Bank and Dena Bank merged into Bank of Baroda |
| 1 April 2020 | 10 PSBs merged into 4; count fell to 12 |
Regional Rural Banks (RRBs)
- Set up on 2 October 1975 (first: Prathama Bank, Moradabad, UP) on the recommendation of the Narasimham Working Group; given legal backing by the RRB Act, 1976.
- Shareholding: Centre 50%, sponsor bank 35%, state government 15%.
- Regulated by RBI, supervised by NABARD.
- One State One RRB: the fourth round of amalgamation (effective 1 May 2025) brought the number down from 43 to 28 RRBs across 26 states and 2 UTs.
- PSL target: 75% of ANBC.
Co-operative banks
| Type | Key point |
|---|---|
| Urban Co-operative Banks (UCBs) | Serve towns and cities; ~1,450 (approx) |
| State Co-operative Banks (StCBs) | Apex bank in each state |
| District Central Co-operative Banks (DCCBs) | District level |
| Primary Agricultural Credit Societies (PACS) | Village level; not banks under the BR Act |
- Co-operative banks are registered under state Co-operative Societies Acts or the Multi-State Co-operative Societies Act, 2002.
- Since the Banking Regulation (Amendment) Act, 2020, RBI regulates co-operative banks more like commercial banks (management, audit, capital).
- Short-term rural co-operatives follow a three-tier structure: StCB → DCCB → PACS.
Development Financial Institutions (DFIs)
| Institution | Set up | Focus |
|---|---|---|
| NABARD | 12 July 1982 | Agriculture and rural development |
| SIDBI | 2 April 1990 | MSMEs |
| EXIM Bank | 1 January 1982 | Exports and imports |
| NHB | 9 July 1988 | Housing finance |
| NaBFID | 2021 | Infrastructure financing |
These are All India Financial Institutions (AIFIs) regulated by RBI.
Exam-ready one-liners
- Scheduled banks are listed in the Second Schedule of the RBI Act, 1934.
- Minimum paid-up capital + reserves for a scheduled bank: ₹5 lakh.
- India has 12 public sector banks since April 2020.
- 14 banks were nationalised in 1969 and 6 in 1980.
- RRBs started on 2 October 1975; now 28 after One State One RRB.
- RRB shareholding: Centre 50%, sponsor bank 35%, state 15%.
- RRBs are regulated by RBI and supervised by NABARD.
- IDBI Bank is a private sector bank as per RBI (since 2019).
Related reading
- Payments banks vs small finance banks
- Priority Sector Lending explained
- 100 banking abbreviations for exams
Quiz: test yourself
Counts and ownership are as per RBI data as reported and may change; check rbi.org.in for the latest list of banks.