Professional Documents
Culture Documents
Meaning
Bank is an Institution, which deals in
money. It accepts deposits from the public
and creates credit with a view to lend.
Banks are those institutions which Borrow
money from those who have surplus and
lend money to those who need money and
the difference b/w interest that they get
from needy and give to those who have
surplus is their income.
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Mobilization of savings.
Financing Industry.
Financing trade.
Development of capital market.
Financing agriculture.
Financing consumer activities. `
Central Bank
2. Commercial bank
a) Private Sector bank
b) Public Sector bank
c) Foreign bank
3. Development Bank and Industrial Bank
4. Cooperative Bank
a) Primary Credit societies
b) District co-operative bank
c) State co-operative Bank
5. Specialized bank
6. Agricultural bank
1.
Commercial Banking:
Commercial bank are those financial
institutions which accept deposits from
the public repayable on demand through
cheques and ATM.
Functions of Commercial Banks:
1. Primary functions.
2. Secondary functions.
Lending money:
i)
ii)
iii)
iv)
Over draft
Cash Credit
Loans and advances
Discounting of bills of Exchange.
securities.
Providing information relating to credit worthiness of their
customers.
Conducting exhibitions and scholarships for students.
Issuing travelers checks, letter of credit and etc