Introduction to banking:-
Banking is the business activity of accepting and owned by other individuals and entities and lending money to others in order to earn the profit. It has various products like ATM services and online transactions and provides the safe custody of valuable items in lockers, money transactions to various countries across the world. banks provide debit and credit cards The banking activity encourages the flow of money to productive use and investments like mutual funds. And it allows the economy to grow. It plays a silent and crucial part in the economy.
What is a bank?
A bank is an institution which receives deposits from the public and lends them for investment purpose, and the main function of the bank is receiving deposits and grants loans to the public, and also it provides many things to the public like insurance, Mutual funds and Investment in stock exchanges, these are the banking activities.
The functions of the bank:
In here the bank act as the payment agents by opening accounts for customers, paying cheques and collecting cheques and deposited to the customer’s accounts. And it has many types of payment methods those are Electronic Fund Transfers (EFT), Rear Time Gross Settlements (RTGS), and Automated Teller Machine (ATM). Here is the list of all main functions of the Banks:
- Accepting Deposits from the public.
- Granting loans to the public.
- Issuing Cheque and accepting cheques.
- Overdraft for public.
- Discounting of Bills and Exchange.
- Agency Functions.
- Investing in Mutual Funds.
- Miscellaneous Functions.
There are different types of banks we have those are given bellow.
- Central Bank.
- Commercial Banks.
- Retail Banks.
- Industrial Banks.
- Agricultural Banks.
- International bank or Foreign Exchange banks or Global banks.
- Investment banks or Merchant Banks.
- Custodian Banks.
- Cooperative Banks.
- Wealth Management Banks or Private Banks.
All these are the types of banks we have those can be explained in next part so follow us on Awareness Adda we will provide all materials for your examinations..!