What is a bank, its types, functions and importance. Bank
If You Are Not Aware About The Above Questions Then Read This Article Completely, Because In This Article We Have Told You The Complete Information About The Bank In Detail. Money Is Mainly Traded In The Bank. People Deposit Their Money In The Bank So That They Can Withdraw It When Needed. The Needy People Take Loans From The Bank So That They Can Complete Their Pending Tasks, Make Their Dreams Come True. The Bank Manages The Public Money. The Bank Opens Accounts Of The Public And Provides Them With Many Types Of Facilities. If You Have An Account In The Bank Then You Can Do Transactions Very Easily. Along With The Development Of Technology, Banks Have Also Become Very Advanced. You Can Do All The Work Related To Your Bank Sitting At Home. You Can Pay Bills, Shop Online From Mobile. We Are Going To Know Everything About The Bank In This Article. So Friends, Let's Start This Article And Know What Is A Bank. What is Bank (What is Banking) Talking In Simple Words, A Bank Is A Financial Institution, Where The Public Deposits Their Money So That They Can Withdraw Those Money When Needed. Apart From This, The Bank Provides Loans To The Needy Public, Which Is Later Repaid By The Public Back To The Bank With Interest. In Other Words, A Bank Is Such An Establishment That Is Certified By The Government And Keeps Public Money Safe, Gives Interest On That Money And Provides Loans To The Needy People. For The Transaction Of Money In Any Bank, An Account Is Required In That Bank Which Is Called Bank Account . Customers Can Do Money Transactions In The Bank Only Through The Bank Account. The Bank Works According To A System Under Which It Provides Financial Services To The Public, Which Is Called Banking System. What is Full Form of Bank The Full Form Of Bank Is Borrowing, Accepting, Negotiating, Keeping. Borrowing – Borrowing Accepting Negotiating Keeping How Does Bank Work? It Is Quite Easy To Explain How A Bank Works. Bank Provides Many Types Of Facilities To The Public And A Person Needs A Bank Account To Avail The Facilities Of The Bank. When A Bank Opens A Bank Account Of A Person, It Makes That Person Its Customer. People Deposit Their Money In Banks To Keep Them Safe to How to transfer money from my mind to my bank account. Now Many Such Needy People Need Loans For Their Various Types Of Work, For Which They Go To The Banks. The Bank Gives The Money Deposited By The Public In A Loan To The Needy People At Some Percentage Rate Of Interest. The Additional Interest Charged By The Bank Is The Profit Of The Bank, In The Same Way That The Bank Earns Money. Banks Also Give Some Percentage Of Interest To The Depositor, Due To Which The Person Who Deposits Money In The Bank Also Benefits. Type of Bank Banks Are Also Of Different Types To Perform Different Types Of Tasks. Below We Have Given You Information About Some Of The Major Types Of Banks – #1 – Commercial Bank Commercial Bank Is Also Called Commercial Bank, Commercial Bank Or Commercial Bank In threshold limit meaning in banking . Commercial Banks Are Regulated Under The Banking Regulation Act, 1949. These Types Of Banks Have Been Created For The Purpose Of Making Profit. The Role Of The Commercial Bank Is Very Important In The Economic Organization Of The Country. Commercial Banks Deposit Public Money And Give Loans To The Public And The Government. There Are Also Four Types Of Commercial Banks. Public Sector Banks (Public Sector Banks ) - Public Sector Banks Are Called Those Banks In Which The Government Has A Higher Percentage Stake, what is threshold limit in banking That Means The Government's Stake In Such Banks Is More Than 50 Percent And The Rest Is Held By The Shareholders. It Occurs. SBI Is The Largest Public Sector Bank In India. Private Sector Bank (Private Sector Banks ) – Private Sector Banks Are Called Those Banks In Which The Majority Stake Is Not Of The Government Of India But Of The Shareholders. There Are Private Sector Banks Like ICICI, HDFC, Axis Etc. In India. Regional Rural Bank ( Regional Rural Bank ) – Regional Rural Bank Is Called Those Banks Which Operate On The Regional In Different States. These Banks Are Commonly Known As Gramin Banks. There Are Total 43 Regional Rural Banks In India. Foreign Bank ( Foreign Bank ) - Foreign Bank Is Called Those Banks Whose Headquarters Are Outside The Country.how to transfer money from my mind to bank account All The Three Types Of Banks Mentioned Above Have To Follow The Rules Of RBI, But The Foreign Bank Also Has To Follow The Rules Of The Other Country, Where They Are Headquartered Along With RBI. At Present There Are 46 Foreign Banks In India. #2 – Scheduled Bank Scheduled Banks Are Those Banks Whose Name Is Included In The Second Schedule Of The Reserve Bank Of India Act, 1934. The Aggregate Value Of Paid-Up-Capital And Reserves Of Such Banks Should Be A Minimum Of Rs 5 Lakh And Scheduled Banks Have To Satisfy RBI That Their Business Is Not Being Carried On In Any Such Manner. Which Is Against The Interests Of The Depositor. If A Bank Does Not Follow These Rules Of RBI, Then RBI Can Remove Them From Its Schedule. RBI Provides Loans To Scheduled Banks At Bank Rates. #3 – Co – Operative Bank Co-Operative Banks Have Been Established Under The Co-Operative Societies Act, 1912. These Types Of Banks Work On The Principle Of No Profit No Loss. The Main Function Of These Banks Is To Provide Emergency Loans To Small Businesses, Entrepreneurs, Industries, Self-Employed And Farmers Of The Country in which country unit banking system started. Co-Operative Banks Are Playing An Important Role In The Development Of The Country. #4 – Development Bank These Types Of Banks Are Established In A Particular Area. The Main Objective Of These Banks Is To Develop In The Area. Development Banks Provide Long Term Loans For Businesses To The People In Their Area So That The Area Can Develop. #5 – Exchange Bank If You Have Currency Of Any Other Country Then You Can Convert Foreign Currency To Indian Rupee In Exchange Bank. And If You Are Planning To Travel To Another Country, Then You Can Convert Your Currency Into Foreign Currency Through Exchange Bank. The Main Function Of tdr full form An Exchange Bank Is To Exchange Currencies. #6 – Payment Bank Payment Bank Is A Modern Type Of Bank Whose Main Objective Is To Provide Banking Facilities In Far Flung Villages And Towns. Payment Banks Have Been Opened To Promote Financial Inclusion So That People From All Walks Of Life Can Avail Banking Facilities. #7 – Industrial Bank Industrial Banks Are Those Banks That Provide Loans For Equipment Used In Industries. There Are Very Few Industrial Banks In India But There Are Many Industrial Banks Abroad for mmid full form. #8 – Central Bank Central Banks Are The Apex Banks Of Any Country Which Give Directions To The Banking System Of The Whole Country. All The Banks In The Country Work Under The Central Bank. The Central Bank Is Wholly Owned By The Government. Apart From Managing The Banking System Of The Country, Central Banks Have Many Functions. There Is Only One Central Bank In All Countries. The Central Bank Of India Is RBI ( Reserve Bank Of India ). History of Banking in India The Bank Was Started In India In 1720. The First Bank In India Was Bank Of Bombay Which Was Closed In 1770. In The Same Year, Another Bank Named Bank Of Hindustan Was Started In India, But In 1832 This Bank Also Closed. The Bank Of Calcutta Was Started In India In The Year 1806, Which Later Merged With The State Bank Of India. SBI Was Established On 1 July 1955. Today SBI Is The Largest Public Sector Bank In India, Which Has More Than 22 Thousand Branches All Over India. idfc first bank ifsc code and SBI Also Has 190 International Branches In 36 Different Countries. The Oldest Public Sector Bank In India Is Allahabad Bank, Which Was Established In 1865. In The Year 2020, Allahabad Bank Got Merged With Indian Bank. The First Overseas Bank In India Was Opened By The Bank Of India In The Year 1956 In London. Today, There Are Many Modern Technology Banks In India, Which Do The Work Related To The Money Of The Customers In A Jiffy. Work of Bank There Are Many Types Of Functions Of A Bank To Strengthen The Economy Of A Country. We Have Given You The Details Of Some Of The Major Functions Of The Bank Below – fino0000001 The Bank Makes A Safe Deposit Or Deposits Of Public Money, And Later People Can Withdraw The Money Deposited By Them From The Bank As Per The Requirement. The Bank Provides Loans To The Needy People At A Fixed Rate Of Interest. You Can Also Send Money To Your Family Members Sitting In Other Countries Through The Bank. The Bank Provides The Facility Of Online Banking, Check Etc. To The Customers To Send Money To Other Countries. The Bank Opens Several Types Of Bank Accounts For Its Customers. Any Person Can Open Any Type Of Bank Account In The Bank As Per The Requirement. With The Opening Of A Bank Account, The Bank Provides Its Customers With The Facility Of Internet Banking , Debit Card And Credit Card , Bank Passbook , Bank Cheque , NEFT And RTGS Etc., Which Provide Ease Of Transaction To The Customers. Banks Provide Lockers Facility To Their Customers In Which Customers Can Keep Their Important Documents, Valuables Etc. Safe. Banks Give Loans To The Government, The Money Which The Government Invests In Development Works for idib bank ifsc code. Banks Also Give Financial Advice To The Government And Provide Assistance In The Work Of The Government. Banks Can Send Money To Any Bank Account Through UPI Without Any Extra Charges. Features of Bank There Are Many Types Of Features Of A Bank, Out Of Which We Have Told You Some Of The Main Features Below – 1 - Bank deals with money The Main Feature Of A Bank Is That The Bank Deals In All The Transactions Related To Money. For Example, You Can Deposit Your Money In A Bank Account To Save It Safely, And You Get Interest On That Money. Hence, This Is The Easiest Way To Grow Your Money Without Any Risk of bank of baroda borivali west. Also, If You Need Money, You Can Borrow It From The Bank At A Fixed Rate Of Interest. For Example, You Can Borrow Money From The Bank To Build Your House, However, You Have To Return The Money Borrowed From The Bank To The Bank Along With Interest. 2 - Banks earn money by providing loans Banks Provide Various Types Of Loans To Their Customers, Which Later Have To Be Repaid With Interest To The Customers. The Bank Earns Extra Money By Giving Loans To The Customers At Certain Percentage Rate Of Interest. Nowadays, Banks Offer Loans For Various Needs Like Education Loan, Car Loan, Home Loan, Personal Loan, Business Loan Etc. Different Banks Offer Different Loans At Different Interest Rates. 3- Bank can be any individual, firm or institution . As We Had Known In The Definition Of The Bank That The Main Function Of The Bank Is To Deposit Public Money And Provide Loans To The Public When Needed. If Any Person Does This Work Then He Can Also Be A Bank. In This Way A Bank Can Be An Individual, Company, Firm Or Institution. 4 – The bank provides the facility of payment and withdrawal A Bank Provides Various Payment And Withdrawal Services To The Customers, So That It Becomes Easy For The Customers To Transact. Customers Can Withdraw Money From ATMs Of Various Banks Established From Any Other City Through Debit Card . The Debit Card Is Directly Linked By The Bank, So The Customer Can Withdraw Money Anywhere In The World Without Having To Go To The Bank and sbi vidyanagar ifsc code. 5 – Banks provide internet banking facility Another Major Feature Of The Bank Is That The Banks Provide The Facility Of Internet Banking. The Development In The Internet And Its Inclusion In The Banking Sector Has Made Many Types Of Transactions Of People Very Easy. Almost All Banks Have Online Applications, With The Help Of Which You Can Pay Bills, Shop Online, Recharge Mobiles Even If You Do Not Have Cash. With The Help Of Banking Application, You Can Make Online Payment Everywhere. 6 – Branches of the bank are available in different regions Branch(S) Of Most Of The Banks Are Present At Different Places So That The Banks Earn More Profit By Adding More People With Them. Many Banks Are Also Opening Their Branches In Rural Areas. People Can Ask The Bank For Any Kind Of Problem By Visiting Their Nearest Branch. 7 - With the development in technology, banks are also increasing their efficiency As Technology Progressed, Banks Also Focused On Their Functionality, Today Banks Are Not Only Limited To Depositing Money And Giving Loans, But Banks Provide Advance Facilities Like Internet Banking, Mobile Banking To The Customers, So That Customers Can Avail Cashless Bank Services. Take Advantage Of. What is a Bank Account Bank Account Or Bank Account Is A Financial Account Provided By Banks To Their Customers, In Which All The Transactions Between The Bank And The Customer Are Recorded. For Any Person To Transact With The Bank, An Account Or Account Is Required Which Is Called A Bank Account. Through The Bank Account Itself, The Bank Makes People Its Customers. To Take Advantage Of The Services Provided By Any Bank, It Is Very Important For The Customer To Have A Bank Account. Types of Bank Account When Any Customer Opens His Account In The Bank, He Gets The Option To Open Mainly 4 Types Of Bank Accounts. Every Bank Account Has Its Own Terms And Conditions. Let Us Know About All Those 4 Types Of Bank Accounts – Current Account Savings Account Fixed Deposit Account Recurring Deposit Account #1 – Current Account Current Account Is Such An Account In Which Cash Flow Is Very Fast, That Means There Is Continuous Transaction Going On In The Account. In This Type Of Account, The Rate Of Deposit And Withdrawal Remains Almost The Same. The Account Holder Does Not Get Any Kind Of Interest On Keeping Money In The Current Account. In The Current Account, The Bank Takes Some Charge From The Customer To Provide Its Facility. You Have To Maintain Minimum Balance In Current Account. This Balance May Vary According To The Locations And Banks. In Most Metro Cities The Minimum Balance Is Rs 10000 And In Non Metro Cities The Minimum Balance Is Rs 7000. If A Current Account Account Holder Is Not Able To Maintain The Minimum Balance, Then The Bank Charges Some Additional Fee From Him. Therefore It Is Very Important To Maintain Minimum Balance In The Current Account. #2 – Savings Account People Use Savings Account To Deposit Their Money In The Bank. Cash Flow Is Very Slow In This Type Of Bank Account. Meaning That Account Holders Deposit More Money In Savings Account And Withdraw Very Less. To Open A Savings Account, A Certain Amount Has To Be Deposited In The Bank As Prescribed By The Bank. Which Mostly Ranges From Rs 100 To Rs 1000. This Amount Varies According To Different Banks. Interest Is Also Given By The Bank On Depositing Money In The Savings Account. You Can Withdraw Money From Savings Account And Deposit It At Any Time. #3 – Fixed Deposit Account Fixed Deposit Account Is Also Known As FD In Common Language. In This Type Of Bank Account, You Have To Deposit A Certain Amount Of Money In The Bank At One Go For A Certain Period Of Time, And When That Time Period Is Over, You Can Withdraw Your Money With Interest. On FD Account, You Get More Interest As Compared To Savings Account. But If You Withdraw Your Money Before The Time Period, Then The Bank Can Also Impose A Penalty On You. Fixed Deposit Is A Good Option For Those People Who Have A Large Amount Of Money Deposited Which They Do Not Want To Use Right Now. Almost All Banks Like SBI, PNB, ICICI Etc. Provide Facility To Open Fixed Deposit Account. #4 – Recurring Deposit Account Recurring Deposit Account Is Called RD In Common Language. In This Type Of Bank Account, You Have To Deposit A Fixed Amount Every Month In The Bank For A Fixed Time Period. And When That Time Period Is Over Then You Can Withdraw Your Money With Interest. Like FD, Interest Is Also Higher On RD, But If You Withdraw Money Before The Time Period, Then The Bank Can Also Impose A Penalty On You. Recurring Deposit Account Is A Good Option For Those People Who Work On A Fixed Salary And Want To Save Some Money For Their Future. Advantages of Bank Today, The Transaction Process That We Are Doing So Easily, All This Has Been Possible Because Of The Banks. A Bank Has Many Advantages. Some Of The Major Advantages Of Banks Are As Follows – The Bank Pays Interest To Its Customers On Deposits. Bank Is The Best Way To Increase Money For Free Without Taking Any Risk. The Bank Provides Various Types Of Loans To The Needy People. You Can Take Different Types Of Loans From The Bank For Building A House, Studying, Buying A Car, For Your Personal Work. With The Credit Card Facility Of The Bank, You Can Make Purchases Even If You Do Not Have Enough Money. With The Help Of Debit Card, You Can Withdraw Money Through ATM In Any City Or Country. Through The Online Application Of Banks, You Can See The Complete Details Of Your Bank Account From The Mobile Sitting At Home. You Can Also Transact Money From Abroad Through The Bank. With The Bank Having Branches In All The Areas, Customers Can Visit Their Nearest Branch And Make Any Kind Of Enquiry. Disadvantage of Bank Along With The Advantages Of The Bank, It Also Has Some Disadvantages. However, The Disadvantages Of The Bank Are Very Less As Compared To The Advantages Of The Bank. If You Take A Loan From The Bank, Then You Have To Repay It With Interest. That Is, You Are Also Giving Such Money To The Bank Which You Have Not Used At All. When The Bank Does Not Have Enough Money To Pay The Customers, There Is A Possibility Of The Bank Going Bankrupt. In Case Of Bankrupt (Bankrupt) Of The Bank, Customers Can Lose Their Money. While People Got The Facility From Internet Banking, On The Other Hand There Is Also A Possibility Of Fraud In Online Banking. Many People Lose Their Property Worth Millions Of Crores In Online Fraud. Services of Bank The Bank Provides A Variety Of Services To Its Customers Such As – Opening Bank Accounts Of Customers Passbook Debit And Credit Cards Checks And Drafts Online, Internet And Mobile Banking Currency Exchange (Any Foreign Currency Can Be Converted Into Indian Currency) Banks Provide Many Types Of Services To Their Customers To Facilitate Transactions Abroad. Importance of Bank The Role Of Banks In The Economic Development Of The Country Is Very Important. Banks Can Deposit Public Money In The Form Of Deposits And Invest Those Money In The Development Works Of The Country. The Country's Central Bank Operates The Country's Monetary System. Regional Banks Play An Important Role In The Development Of Various Regions Of The Country. Banks Make The Convenience Of Customers' Transactions Easy. The Bank Acts As An Intermediary Between The Capitalists And The Needy. The Bank Creates Capital And Gives Loans To Use It For The Economic Development Of The Country. Bank FAQ What Is A Bank?A Bank Is A Financial Institution That Deposits Public Money Safely And Provides Loans To The Needy People With A Certain Percentage Rate Of Interest. What Is The Name Of Bank In Hindi?The Name Of The Bank In Hindi Is Adhikosh. What Is The Full Form Of Bank?The Full Form Of Bank Is Borrowing, Accepting, Negotiating, Keeping. How Does The Bank Make Money?The Bank Provides Loans To The Needy People, Which The Bank Takes Back With Interest. Which Is This Interest, From Here The Bank Mainly Earns Money. Which Is The Largest Bank In India?The Largest Bank Of India Is State Bank Of India. You learned: What is a bank In This Article You Have Learned That Bank Kya Hai In Hindi And How Many Types Of Banks Are There . Along With This, In This Article, We Have Also Provided You Information About The Functions, Features, Importance, Services, Advantages And Disadvantages Of The Bank. Banks Are Very Important For The Economic Development Of Every Country And The Facilities Provided By The Bank And Bank Are Important For Every Person, And Everyone Must Take Advantage Of The Services Of The Bank. That's All In This Article, How Did You Like This Article Written By Us, Do Tell In The Comment Box, And Also Share This Article With Your Friends On Social Media.