As banks are institutions with legal backing and as there is a banking regulator to oversee their financial solvency and soundness, it enables the banks to earn the trust and confidence of the public.
You are also aware that banking in India, as elsewhere, takes diverse forms viz., banks formed under special statutes, companies registered under the Companies Act, 1956 or foreign companies and co-operative societies registered under the Co-operative Societies Act. Banks are classified based on their ownership pattern such as public sector banks, private sector banks and foreign banks.