INTRODUCTION OF BANKING part 1
---BANKING AWARENESS BY DINESH DAYMA ----
( RRB PO IN BRKGB)
Introduction
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.
Banking System – Definitions
Banking systems refer to a structural network of institutions that provide financial in a country. It deals with the ownership of banks, the structure of banking system, functions performed and the nature of business.
The elements of the banking system include:
a) Commercial banks
b) Investment banks
c) Central bank.
The commercial banks accept deposits and lend loans and advances.
The investment banks deal with capital market issues and trading
And the central bank regulates the banking system by setting monetary policies besides many other functions like currency issue.
A banking system also refers a system provided by the bank which offers cash management services for customers, reporting the transactions of their accounts and portfolios, throughout the day.
---BANKING AWARENESS BY DINESH DAYMA ----
( RRB PO IN BRKGB)
According to the Indian Banking Company Act 1949,
“A banking company means any company which transacts the business of banking. Banking means accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or other wise and withdrawable by cheque, draft or otherwise.”
This definition throws light on the three major functions of a bank.
They are:
(i) Accepting of deposits and lending loans (ii) Issue and pay cheques, (iii) Collect cheques on behalf of the customers.
A bank is a financial institution that provides banking and other financial services to their customers.
A bank is an institution which provides fundamental banking services such as accepting deposits and lending loans.
As financial intermediaries, banks stand between depositors
who supply capital and borrowers who demand capital. When banks accept deposits its liabilities increase and it becomes a debtor, but when it makes advances its assets increases and it becomes a creditor. Banks are a subset of the financial services industry. The banks are the main participants of the financial system in India.
All the banks safeguard the money and valuables and provide loans, credit, and payment services, such as money orders, and cheques. The banks also offer investment and insurance products. Due to the emergence of integration among finance industries, some of the traditional distinctions between banks, insurance companies and securities firms have diminished and they have converted themselves into Universal Banks to offer a variety of services under one umbrella.
Example: IDBI Bank and ICICI. In spite of these changes, banks continue to maintain and perform their primary role—accepting deposits and lending funds from these deposits.
WILL BE CONTINUE..........
---BANKING AWARENESS BY DINESH DAYMA -----
( RRB PO IN BRKGB)
B.K SHARMA
( RRB PO IN BRKGB)
Introduction
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.
Banking System – Definitions
Banking systems refer to a structural network of institutions that provide financial in a country. It deals with the ownership of banks, the structure of banking system, functions performed and the nature of business.
The elements of the banking system include:
a) Commercial banks
b) Investment banks
c) Central bank.
The commercial banks accept deposits and lend loans and advances.
The investment banks deal with capital market issues and trading
And the central bank regulates the banking system by setting monetary policies besides many other functions like currency issue.
A banking system also refers a system provided by the bank which offers cash management services for customers, reporting the transactions of their accounts and portfolios, throughout the day.
---BANKING AWARENESS BY DINESH DAYMA ----
( RRB PO IN BRKGB)
According to the Indian Banking Company Act 1949,
“A banking company means any company which transacts the business of banking. Banking means accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or other wise and withdrawable by cheque, draft or otherwise.”
This definition throws light on the three major functions of a bank.
They are:
(i) Accepting of deposits and lending loans (ii) Issue and pay cheques, (iii) Collect cheques on behalf of the customers.
A bank is a financial institution that provides banking and other financial services to their customers.
A bank is an institution which provides fundamental banking services such as accepting deposits and lending loans.
As financial intermediaries, banks stand between depositors
who supply capital and borrowers who demand capital. When banks accept deposits its liabilities increase and it becomes a debtor, but when it makes advances its assets increases and it becomes a creditor. Banks are a subset of the financial services industry. The banks are the main participants of the financial system in India.
All the banks safeguard the money and valuables and provide loans, credit, and payment services, such as money orders, and cheques. The banks also offer investment and insurance products. Due to the emergence of integration among finance industries, some of the traditional distinctions between banks, insurance companies and securities firms have diminished and they have converted themselves into Universal Banks to offer a variety of services under one umbrella.
Example: IDBI Bank and ICICI. In spite of these changes, banks continue to maintain and perform their primary role—accepting deposits and lending funds from these deposits.
WILL BE CONTINUE..........
---BANKING AWARENESS BY DINESH DAYMA -----
( RRB PO IN BRKGB)
B.K SHARMA
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