Content

Meaning of Banking
Types of banks
Functions of banks
E-banking
Benfits of E-banking
 Meaning of banking
 Banks provide credit facility, loan etc to provide finance for
smooth flow of business activities. Banks help the businessmen to
overcome the problem of funds. Along with provision of funds,
the commercial banks provide many others facilities such as
collection and deposit of cherubs, issue of bank draft, discounting
of bills of exchange, etc. Banks also provide the facility of
overdraft, cash credit limit, arrangement and payment in foreign
currency in case of foreign or external trade.
 Types of Banks
CENTRAL BANK
 A central bank, reserve
bank, or monetary authority
is an institution that
manages the currency and
monetary policy of a state or
formal monetary union, and
oversees their commercial
banking system.
COMMERCIAL BANK
 The term commercial bank
refers to a financial
institution that accepts
deposits, offers checking
account services, makes
various loans, and offers
basic financial products like
certificates of deposit (CDs)
and savings accounts to
individuals and small bu
sinesses
 Functions of Commercial Banks

 PRIMARY FUNCTIONS

1. Accepting deposits
2. Granting loan facilities
 SECONDARY FUNCTIONS

1. Agent function
2. General utility function
 PRIMARY FUNCTIONS

Accepting Deposits Granting Loan Facility

 The money accepted from various people are
 Banks offer different types of Bank
accounts to suit the requirements and lended to profitable businesses . Ways of lending
needs of different customers. Different are:
types of Bank accounts are as follows 1. Term Loan
1. Fixed deposit 2. Bank overdraft
2. Current Deposit 3. Cash credit
3. Savings Account 4. Discounting bills of exchange.
4. Multiple option deposit account
5. Reccuring Deposit Account
 SECONDARY FUNCTIONS
Agent function
1. Collecting bills of exchange,
promissory notes and cheques.
2. Collecting dividends, interest etc.
3. Buying and selling shares,
debentures and other securities.
4. Payment of interest, insurance
premium etc
General Utility function
1. Providing lockers for safe custody of
jewellery and other valuables of
customers.
2. Providing information to a customer
about the credit worthiness of other
customers.
3. Supplying various types of trade
information useful to customers.
E-banking / Electronic Banking

 Use of internet in the functioning of the banks is called electronic

banking. Because of these services the customers don’t need to go to the
bank every transaction. He can make transactions with the bank at any
time and fr time for every om any place. The chief electronic services are
the following:
1. Electronic Fund Transfer
2. Automatic Teller Machines
3. National Electronic Fund Transfer
4. Real Time Gross Settlement
5. Digital Cards
 Benefits of E- Banking
 Customer

1. Banking provides 24 hours a day X 365 days a year services to the customers.
2. Banking Customers can make transactions from the office or house or while
traveling via mobile telephone.
 Banks

1. Banking lowers the transaction cost.

2. Load on branches can be reduced by establishing a centralized Edatabase.
3. Banking provides competitive advantage to the bank, and adds value to the
banking relationship.
THANK
YOU
NAME : Harshit Mahajan
CLASS : 11 C1
SUBJECT : Business studies
TEACHER : Ms. Palak Srivastava