A bank is a financial institution regulated by RBI to accept deposits and make loans. Banks also perform other financial activities and provide services to customers. Banks are considered one of the best and safe places to store extra cash and credit. There are many types of banks the two most important types of banks are commercial and investment banks.
Banking
Banking can be defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money to earn a profit.
Features
1. Dealing in money
2. Accepts deposits
3. Repayment of accepted deposits
4. Check accounts balances
5. Transfer of funds from one account to another
6. Provide loans
7. Middle man
8. View Account Statement
Objectives of Banks
1. Making profits
2. Receiving deposits
3. Currency issue
4. Providing services
5. Making loans
6. Investment
7. Creating savings
8. Economic development
9. Industrialization
10. Capital formation
The bank is itself a very broader term I will cover more about Banks in another article. Till then share this article with your friends and family who don’t know Banks properly. Comment if I miss anything 😛
Hello Readers! I am Kanika 🧸 a finance enthusiast like you, I am here to share the knowledge that I learn from the experience. Let's exchange knowledge together. Connect with me on my social profiles 😉
