What Is Bank

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What is bank?
Finance is the life blood of trade, commerce and industry.   Now -a-days, banking sector acts as the backbone of modern business.   The term bank is derived from the French word Banco which means a Bench or Money exchange table.   In olden   days, European money lenders or money   changers used to display (show) coins   of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchanging.   A bank is a financial institution which deals with deposits and advances and other related services.   It receives money from those who want to save in the form of deposit and it lends money to those who need it. Definition of a Bank

Section 5(b) of the Banking Companies Act,   1949 defines banking as “accepting for the purpose of lending or investment of deposits of money received from the public, repayable on demand and withdrawal by cheque, draft, order or otherwise”. Features of a Bank

1. Dealing in Money
2. Individual / Firm / Company
3. Acceptance of   Deposit
4. Giving   Advances
5. Payment and Withdrawal
6. Agency and Utility Services
7. Profit and Service Orientation
8. Ever Increasing Functions
9. Connecting   Link
10. Banking Business
11. Name IdentityCHAPTER 1
Introduction
What is a Bank?
Finance is the life blood of trade, commerce and industry.   Now -a-days, banking sector acts as the backbone of modern business.   The term bank is derived from the French word Banco which means a Bench or Money exchange table.   In olden   days, European money lenders or money   changers used to display (show) coins   of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchaning.   A bank is a financial institution which deals with deposits and advances and other related services.   It receives money from those who want to save in the form of deposit and it lends money to those who need it. Definition of a Bank

Section 5(b) of the Banking Companies Act,   1949 defines banking as “accepting for the purpose of lending or investment of deposits of money received from the public, repayable on demand and withdrawable by cheque, draft, order or otherwise”. Features of a Bank

1. Dealing in Money
2. Individual / Firm / Company
3. Acceptance of   Deposit
4. Giving   Advances
5. Payment and Withdrawal
6. Agency and Utility Services
7. Profit and Service Orientation
8. Ever Increasing Functions
9. Connecting   Link
10. Banking Business
11. Name Identity

Funtions of Bank
The fuctions of banks are briefly highlighted in following   Diagram or Chat.

A. Primary Function of   Banks

1. Accepting   Deposits:

a. Saving Deposits
b. Fixed Deposits
c. Current Deposits
d. Recurring Deposits

2. Granting of Loans and Advances:

a. Overdraft
b. Cash Credits
c. Loans
d. Discounting of Bill of Exchange

B. Secondary Function of Banks

1. Agency Functions

a. Transfer of Funds
b. Collection of Cheques
c. Periodic Payments
d. Portfolio Management
e. Periodic Collections
f. Other Agency Functions

2. General Utility Functions

a. Issue of Drafts and Letter of Credits
b. Locker Facility
c. Underwriting of Shares
d. Dealing in Foreign Exchange
e. Project... [continues]
advantages of debit cards
* A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card, allowing him/her to make plastic transactions. For example, legislation often prevents minors from taking out debt, which includes the use of a credit card, but not online debit card transactions. Research has shown that consumers with lower credit scores use debit cards more intensively than those with higher credit scores.[8] * For most transactions, a check card can be used to avoid check writing altogether. Check cards debit funds from the user’s account on the spot, thereby finalizing the transaction at the time of purchase, and bypassing the requirement to...
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