Private Sector Banks - The banks in the private sector are classified into two categories. (i) the old private sector banks which are essentially regional in character.

The second category are new private sector banks set up after 1991 (in the wake of financial sector reforms).

Regional Rural Banks
The Regional Rural Banks which are State-sponsored, regionally based and rural oriented commercial banking institutions appeared on the Indian banking scene in 1975. Commercial banks have been involved closely in the setting up of and provision of capital, grant of financial accommodation and extension of organisational support to the Regional Rural Banks established by them.