With the money that retail banks receive from their depositors, they provide loans to other businesses. Rather of charging higher interest rates on deposits, these financial institutions generate money by charging higher interest rates on loans.
Regulation of the Indian banking sector is carried out by the Reserve Bank of India (RBI), which is governed by the Banking Regulation Act established in 1949. Whereas in U.S.A, banking sector is regulated at state level and federal government.
Retail banking is a structure that allows products and services in one place and can be avail from any of the branch locations. Large retail banks are also termed as international retail banking where individual can obtain services worldwide.
Now days, online banking provide individual product and services information on mobile retail banking over cell phone or online retail banking wrapped up in websites. Retail banking is mainly known for small business banking or personal banking.