The major type of banks are two
1. Scheduled Banks
2. Non-Scheduled Banks
They are further classified into sub types with respect to their nature.
the following diagram will help you better understand it:
Saturday, June 27, 2020
Saturday, June 20, 2020
Functions of Bank
Functions of Banks
The most important function of any bank are two. they are
a) Accepting Deposits
b) Granting Loans & Advances
Deposits are of three types mainly
1. Saving Deposit
2. Current Deposit
3. Fixed Deposit
1. Saving deposit is one of the account type that helps the consumers to open an account in bank for a longer period unlike current account. under this account banks give facility to withdraw for number of times with certain limit.
2. This account (Cuurent deposit account) is mainly opened for the purpose of business use where bank provides overdraft facility with higher interest rate charges. The main feature of this account is "short term use".
3. Under Fixed account system, the money deposited into account can only be withdraw only after maturity tenure agreed between the parties (Account holder & Bank).
Friday, June 19, 2020
Basic Intro of Bank
What is Bank?
Finance is the life blood of trade, commerce and industry. Development of any country mainly depends upon the banking system. Now-a-days, banking sector acts as the backbone of modern business.
The very first question that arrives in our mind that, What is Bank.
let me tell you there are numerous definitions being given to Bank. Few of these will be included here:
Definitions
1. A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. - investopedia
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