What is a Bank ? Introduction ↓
Finance is the life blood of trade, commerce in addition to industry. Now-a-days, banking sector acts equally the backbone of modern business. Development of whatever province mainly depends upon the banking system.
The term banking concern is either derived from former Italian discussion banca or from a French discussion banque both hateful a Bench or money telephone commutation table. In olden days, European money lenders or money changers used to display (show) coins of unlike countries inwards big heaps (quantity) on benches or tables for the purpose of lending or exchanging.
Image Credits © Tardiskey
A banking concern is a fiscal establishment which deals amongst deposits in addition to advances in addition to other related services. It receives money from those who desire to relieve inwards the shape of deposits in addition to it lends money to those who request it.
Definition of a Bank ↓
Oxford Dictionary defines a banking concern equally "an establishment for custody of money, which it pays out on customer's order."
Characteristics / Features of a Bank ↓
1. Dealing inwards Money
Bank is a fiscal establishment which deals amongst other people's money i.e. money given past times depositors.
2. Individual / Firm / Company
A banking concern may last a person, theater or a company. Influenza A virus subtype H5N1 banking companionship agency a companionship which is inwards the trouble organisation of banking.
3. Acceptance of Deposit
A banking concern accepts money from the people inwards the shape of deposits which are unremarkably repayable on need or subsequently the death of a fixed period. It gives security to the deposits of its customers. It too acts equally a custodian of funds of its customers.
4. Giving Advances
A banking concern lends out money inwards the shape of loans to those who require it for unlike purposes.
5. Payment in addition to Withdrawal
A banking concern provides tardily payment in addition to withdrawal facility to its customers inwards the shape of cheques in addition to drafts, It too brings banking concern money inwards circulation. This money is inwards the shape of cheques, drafts, etc.
6. Agency in addition to Utility Services
A banking concern provides diverse banking facilities to its customers. They include full general utility services in addition to agency services.
7. Profit in addition to Service Orientation
A banking concern is a net seeking establishment having service oriented approach.
8. Ever increasing Functions
Banking is an evolutionary concept. There is continuous expansion in addition to diversification equally regards the functions, services in addition to activities of a bank.
9. Connecting Link
A banking concern acts equally a connecting link betwixt borrowers in addition to lenders of money. Banks collect money from those who stimulate got surplus money in addition to plow over the same to those who are inwards request of money.
10. Banking Business
A bank's principal activeness should last to produce trouble organisation of banking which should non last subsidiary to whatever other business.
11. Name Identity
A banking concern should ever add together the discussion "bank" to its refer to enable people to know that it is a banking concern in addition to that it is dealing inwards money.
