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Government Bank

 

Banks play an important role in our life. It plays a vital role in our financial well being. Over the years the banking system in India has undergone changes. As such the banking system has evolved for the better. Although several private as well as foreign banks have started operating in India but a government bank is still one that is the most entrusted.

 
Government bank names-
There are many government banks in the country. Given below is a list of government bank names of just a few. Check them out –
 
  • Allahabad Bank
  • Bank of Baroda
  • State Bank of India
  • Bank of India
  • Andhra Bank
  • Canara Bank
  • Corporation Bank
  • Oriental Bank of Commerce
  • UCO Bank
  • Punjab and Sind Bank
  • United Bank of India
  • Union Bank of India
  • Vijaya Bank etc
 
Government Housing Finance
One of the main roles played by the banks (government and private) is extending loans. You can take out personal loans, car loans as well as home loans. Government housing finance has assumed greater importance over the years owing to the fact that the real estate market is also growing. More and more people are being able to afford homes that are quite expensive. This is made possible by the housing finance companies.
 
Housing companies may be private or government. Usually the rate of interest is more in case of private banks. For similar reasons, majority of the people opt for government housing finance. However, private housing finance is not uncommon either.
 
Housing market and government housing finance
Government banks extend housing finance not only to individuals but also to real estate developers who develop housing projects in the city. Several housing projects are coming up in different cities. And you will find majority of the projects being funded by government housing finance companies or government banks.
 
Government housing finance programs are designed in such a way so that it can take care of your affordability. In most of the cases, 85% of the value of the property is extended as home loan. The remaining amount you have to bear on your own.
 
Rate of interest of home loans
Home loan rates are never constant. They change according to the prevailing conditions of the housing market. So, if you are interested in taking out a home loan, make sure you are able to assess your affordability and decide correctly about the nature of interest rate you should opt for – floating or fixed.
 
In what other way will a government bank help you?
A government bank can help you in different ways. The services offered by a government bank are varied. And some of the services you can avail are as follows –
 
  • Bank account
You can open an account with a government bank. It can be a current, savings account or term deposits.
 
  • Money transfer
This is one facility that has made life much easy for the people around the globe as far as banking is concerned. You can send money to a foreign land and receive cash too.
 
  • Safety lockers
You can keep your valuables like jewelry and important documents in the safe deposit locker that you can opt for if you have an account in a government bank.
 
  • Plastic money
Credit and debit cards have made life easier for us. You no longer have to carry cash with you anymore. Plastic money can help you to travel light without cash wherever you go. These cards come to your rescue on several instances.
 
  • Insurance
Most of the banks, private as well as government banks are offering insurance coverage for its customers. It can be health insurance, life insurance or home insurance.
 
History of Government banks
The modern banking system in India came into being during the early 19th century. Initially there were 3 government banks, namely Bank of Bengal (1809), Bank of Madras (1843) and Bank of Bombay (1840). Later the 3 banks joined to form the Imperial Bank. The present State Bank of India later took over the Imperial Bank.
 
Types of banks in India
There are different categories of banks in the country. Given below are few such names along with the banks falling in their respective categories.
 
Public sector banks
Examples-
 
  • Regional banks in rural areas (the public sector banks sponsors them)
  • Nationalized banks
  • State of Bank of India along with the associate banks (Group of State Banks)
 
Central Bank
The Central Bank of the country is the Reserve Bank which is owned by the government. It lays down the regulations that govern the activities of the banks operating in the country.
 
In addition to the ones mentioned above, there are different categories of banks that function. They include the following –
 
  • Financial institutions or development banks
  • Private sector banks
  • Co-operative sector etc
 
In a nut shell
Although several foreign banks are offering services to the people of the country, there are many people who still prefer to bank with a government bank in the country despite the fact that the private as well as the foreign banks offer good services. It mainly depends on the mental make up of a consumer.