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