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Showing posts with label Other services. Show all posts
Showing posts with label Other services. Show all posts

30/03/2015

Banking – A History and Function

Banking – A History and Function

Banking is a comprehensive wide term in which different types of financial activity take places. In other words – a system or place where we put our money or valuable things for safety purpose and take back or withdrawal according to our need or requirement. Bank system deal in money, it takes money from depositor on a low rate and gives it to industries on other/higher rates according to their needs. In past time lot of people involve in these types of activity like – shroffs, seths, mahajans, baniya or sahukar etc.

Our first bank, Bank of Hindustan is entirely managed by out sides of India. After that bank of Bengal (1806), Bank of Bombay (1840) or Bank of Madras (1846). After freedom, the State bank of India was formed in 1955 for main financial activity in India. It is responsible for new branches in different area of India and other mutual benefit.

Banking – A History and Function
Banking – A History and Function  

Different functions & activity of a commercial bank –

ü  Facility for depositors: - bank means motivation for saving, it also pay interest on summit amount and also provide lockers for valuables things. It also involve different settlements like cheques, DD, bill payments or tax etc.
ü  Loan: - commercial bank provides financial support to small scale or big industries and farmer for a fix time with low level of interest rates. Mainly bank lend their money like overdraft, cash, creditor, loans & bill discounts. These facilities also divided into secured and unsecured loan.
ü  Other services: - bank also buys & sells share, bond or debentures for their customers. It also pay their regular payment like tax or premium etc.