Banking System- Lifeline of a Country’s Economy

The Indian banking system is the most developed banking system. It is divided into there groups. Each group has its own benefits and their own target market. Indian banking system consists of the Central Bank(Reserve Bank of India-RBI), Commercial activities, co-operative banks, development banks. The banks play an important role in promoting economic growth by channeling savings into investments.

In India, the banks are classified into different categories. They are :

  • Payments Bank
  • Small Finance Banks
  • Commercial Banks
  • Co-operative Banks
  • Development Banks
  • Investment Banks
  • Merchant Banks
  • Foreign Banks
  • Central Banks

The banking system works according to the RBI guidelines. RBI supervises the banking regulations and administers the government’s monetary policy. The growth of the Indian Banking Industry has been more qualitative than quantitative. 

The term “Best Bank in India” cannot be generalized as what is best for one cannot be the best for the other. It will be solely based on individual experience and satisfaction.

Indian banking industry is sufficiently capitalized and regulated. Sectors of the banking industry include Private Banking, Retail, and Investment Banking.

The analysis for best bank done on the basis of usage of Modern Banking Technology, customer satisfaction, branch network, product offering, and other parameters, we can bank upon for our financial needs. The need for the user must be different and so are their needs and requirements. Below we are discussing the factors which user must consider while choosing to associate with a bank:

  • Services – Indian PSUs hold a mediocre level of reputation in this regard. Although there is an improvement in this area, still it needs a lot of work to get to the level of Private Sector Banks.
  • Purpose – The reason for opening a bank account can be any. It might be only for savings or simply for receiving a salary. The individual might think of availing a loan in the future, then it will require screening of banks with that perspective in mind.
  • Technology – If one is tech-savvy and wishes to do the maximum of his/her transactions through the mobile apps on the go, then the choices will be based on that.
  • Branch Network – Having a branch network eases the transfer process and assists in getting our transactions done with minimal hassle. It makes the task easier for us of operating our account from every corner of the world.
  • Charges – It is one parameter which most if us look out for while finalizing a bank. Banks having a transparent fee-structure, no hidden charges is mostly the choice of the individuals.
  • Phone Banking – A good phone banking service always simplifies the task of visiting the bank branch for minor works. This factor must be considered by an individual while selecting the bank.
  • ATM Points – A bank’s ATM is the utmost necessity in day to day lives. Having good number of ATM branches facilitates the user to withdraw cash at any time. 

Now let us discuss below India’s top banks and their features:

SBI Bank 

SBI has been ranked as the top 10 best banks according to Forbes list of Best Bank in India 2019. SBI is a wholly-owned subsidiary of RBI and the majority of its share is owned by RBI. SBI has the history of being the oldest bank whose origin is accounted several years back. It has more than 23% of the market share in India’s banking sector. 

HDFC Bank – It is India’s leading private sector bank, offering banking and financial services that are headquartered in Mumbai. 

  • It is known to have all banking products.
  • It gives the best offers and discounts on e-Commerce sites.
  • It has world-class customer support.
  • It has a very good Credit Card Base.

Axis Bank – It is the third-largest Private sector bank in India, having the most number of ATMs. Currently, Axis Bank has over 4050 branches and more than 11800 ATM in India. It offers a wide range of banking products from Retail to Corporate Banking and one of the best banks for SME lending. In the year 2017, Axis Bank has acquired Gurgaon Based UPI Payment cum Wallet App- Freecharge from Snapdeal.


ICICI also is known as Industrial Credit and Investment Corporation launched ICICI Bank in the year 1994, which later was merged together to form a single entity. ICICI Bank was the first to introduce Mobile Banking App in the year 2008 and internet banking in the year 1996.

For users wishing to open an account with International Banks, here is a list of top International Banks in India

Citibank – It began its operations in Kolkata but is now headquartered in Mumbai. Offering personal, housing and business loans, the bank has been helping Indians with financing options as well with minimum paperwork and other formalities. 

HSBC India – Headquartered in Mumbai, HSBC Bank is a subsidiary of the HongKong and Shanghai Banking Corporation. With over more than 6000 branches around the world, it is considered as one of the oldest banks of India. It is the third-best foreign bank in India 2020. It offers services of retail banking, personal banking, debit and credit card, loans as well as foreign exchange. It is known for offering India its first ATM back in the year 1987.

Standard Chartered – It is the 2nd best foreign bank in India. The bank was founded in the year 1969 and is very popular among the masses. It has presence in 43 cities with over 102 branches.

The key services offered by the bank include Corporate and Institutional Banking, Commercial, Retail, and Private Banking.

Deutsche Bank – The bank has a global reach with its presence in more than 70 countries and over 78,000 employees across the Globe. The services include on-shore investment banking, institutional equities broking, asset, and private wealth management, retail banking and business processes outsourcing. It is said to have more than 5 lakh customers in India.

Royal Bank of Scotland – This bank has been serving Indian customers for over 90 years. It has been providing numerous quality services like foreign exchange, debt capital market, corporate banking, insurance, etc. It has over more than 700 branches.

The bank was committed to supporting local communities wherein it implemented several programs to promote enterprises with a special focus on livelihood generation, youth, and women. The bank was established in the year 1921 and currently operates through its 10 branches. It offers services of Debt capital market services, financial advisory as well as foreign exchange.

Barclays Bank – The bank has many firsts to its credit and stands tall amongst the International brands present in the country. It offers product offerings of Corporate banking and Investment banking. The bank has by far the largest capital commitment by any foreign banks in the country.

The wealth and Investment management operates through Barclays Securities and Investments Pvt Ltd. It has been voted as the first private bank in India for three consecutive years.

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