<P> The next stage for the Indian banking has been set up, with proposed relaxation of norms for foreign direct investment . All foreign investors in banks may be given voting rights that could exceed the present cap of 10% at present . It has gone up to 74% with some restrictions . </P> <P> The new policy shook the Banking sector in India completely . Bankers, till this time, were used to the 4--6--4 method (borrow at 4%; lend at 6%; go home at 4) of functioning . The new wave ushered in a modern outlook and tech - savvy methods of working for traditional banks . All this led to the retail boom in India . People demanded more from their banks and received more . </P> <P> The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks. All banks included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled Banks . These banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks . Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Cooperative Banks. Scheduled Commercial Banks in India are categorised into five different groups according to their ownership and / or nature of operation: </P> <Ul> <Li> State Bank of India and its Associates </Li> <Li> Nationalised Banks </Li> <Li> Private Sector Banks </Li> <Li> Foreign Banks </Li> <Li> Regional Rural Banks </Li> <Li> Small Finance Banks </Li> </Ul>

In india banks are classified into how many different types