1.) Para Banking - Para banking activities are defined as those banking activities which a bank performs apart from its daily activities like withdrawal or deposit3 of money. Under para banking activities banks can undertake activities either departmentally or by setting up subsidiaries.
2.) Narrow Banking - This is a type of banking in which banks invest money mostly in government bonds and securities. This is done to avoid risk in the market. Banks dedicated to such type of banking are also known as Narrow Banks.
3.) Offshore Banking - When a bank accepts currencies of countries abroad, such an activity is known as Offshore banking. Sometimes people require more than their local banks can offer. In such cases, they opt for Offshore banking. It provides financial and legal benefits like privacy and minimal taxation3.
4.) Green Banking3 - Green banking promotes deployment of clean energy technologies. It stresses on environmentally friendly practices and aims at reducing the carbon footprint from banking activities. These activities seek to reduce costs of energy for ratepayers, private sector investments4 and other economic activities.
5.) Retail Banking - Retail banking is a type of banking in which direct dealing with the retail customers is done. This type of banking is also popularly known as consumer banking or personal banking. Retail banking is the visible face of banking to the general public.
6.) Wholesale Banking4 - Wholesale banking is the plan of services provided by banks to the corporations like mortgage brokers, big organizations, companies, real estate investors, international trade financiers, and institutional investors like government organizations.
7.) Universal Banking - This is a type of banking in which banks are allowed to undertake all types of financial activities regarding banking or development in accordance with the statutory and other requirements of RBI, Government and related legal Acts. Universal Banking includes activities like accepting deposits, issuing credit cards, investing in securities, merchant banking, foreign exchange4 operations, etc.
8.) Islamic Banking - Islamic banking is a kind of banking activity which strictly follows the principles of the Islamic law (Sharia) and its application practically through the development in Islamic economics. A better and more apt term for Islamic banking is Sharia Compliant Finance.
9.) Unit Banking - In such a type of banking, all the operations are performed from a single branch. A customer having an account in a specified branch has to undergo all banking activities through that branch. Examples are Regional Rural Banks and Local Area Banks.
10.) Correspondent Banking - In such a type of banking, the bank does not have a physical presence or any limitations in the permission of operations. It acts as a banking agent for a home bank.
11.) Chain Banking - Chain banking is a type of banking which is a group of minimum 3 banks held together by a group of people to carry out effective banking activities. Instead of having a holding company the bank functions independently. The revenue is maximized since there is no overlap of activities.
12.) Mixed Banking - Mixed banking is a type of banking in which deposits and investment activities take place simultaneously. It can also be described as the dual functioning of investment banking4 and commercial banking4.