Question on different Types of Banks

1. What is the difference between Nationalised bank and Private Bank?
Those banks where the Government holds the majority stake (more than 50% of the shares) are known as public sector banks. A nationalised bank is formed by taking a bank and its assets into the public ownership and same to be “nationalised” under the “Banking Companies (Acquisition and Transfer of Undertaking) Bill”.
And those where private institutions/individuals hold more than 50% of the shares are known as private sector banks.

2. What is Payment Bank?
A payments bank is like any other bank, but operating on a smaller scale without involving any credit risk. In simple words, it can carry out most banking operations but can't advance loans or issue credit cards. It can accept demand deposits (up to Rs 1 lakh), offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third party fund transfers.
Airtel has launched India's first live payments bank, Paytm is the second such service to be launched in the country. India Post Payments Bank is the third entity to receive payments bank permit after Bharti Airtel and Paytm.
The main objective of payments bank is to widen the spread of payment and financial services to small business, low-income households, migrant labour workforce in secured technology-driven environment.
With payments banks, RBI seeks to increase the penetration level of financial services to the remote areas of the country.

3. What is Private Banking?
Private banking is personalized financial and banking services that are traditionally offered to a bank's wealthy high net worth individual (HNWI) clients. Private banking institution assists the high net-worth individual in investing his/her money in exchange for commissions and fees. The term "private" refers to the customer service being rendered on a more personal basis. It does not refer to a private bank, which is a non-incorporated banking institution.

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Question on different Types of Banks