Professional Documents
Culture Documents
BANK
BANK
Bank is an institution which deals in money and credit. It accepts deposits from the
public and grants loans and advances to those who are in need of funds for various
purposes.
Bank receives demand deposits and time deposits, honors instruments drawn on
them, and pays interest on them:
Discounts notes,
Makes Loams,
And invests in securities;
Collects cheques, drafts, and notes;
Certifies depositor’s cheques; and issues drafts and cashier’s cheques.
BANKING
Banking is an activity which involves acceptance of deposits for the purpose of
lending or investing. In addition to accepting deposits and lending funds, banking also
involves in providing various other services along with its main banking activity.
These are mainly agency services, but include several general services as well.
BANKER:
A banker is one who undertakes banking activities, accepting deposits and lending
money for different purpose. The Banking Regulation Act, 1949 defines banking as an
activity of accepting funds from the public for the purpose of lending or investment
According to the Banking Regulator Act 1949, “Banking means the accepting for
the purpose of lending or investment of deposit of money from the public, repayable
on demand or otherwise and withdrawal by cheques, draft, order or otherwise.” In
India, Banking originated in the first decade of 18th Century when the General Bank
came into existence in 1786 which was followed by the Bank of Hindustan. Both
these banks are now defunct. The oldest bank in existence in India is the State Bank of
India which was established as the Bank of Calcutta in June 1806. In early 1990s, the
Narasimha Rao government embarked on the policy of liberalization and gave license
to small number of respondents of private banks, which later came to be known as
new generation banks such as ICICI Bank and HDFC Bank. In India, banking is
considered fairly matured in terms of supply, product range and reach – although
reach in rural India still stands a challenge for the private sector and foreign banks.
Functions
The position of money lender is very significant. Their role is to be the liaison
between individuals who need loans and the institutions that provide them. The
role of a money lender is to balance the amount of money lent with the amount
of money the institution has available for loans. Money lenders also are the
main determining factor in whether an individual receives a loan. Because of
this important task, money lenders hold some of the most important positions
in business.
Role of Banking