Banks accept deposits and make loans. They provide services like wealth management and safe deposit boxes. Banks include retail banks, commercial banks, and investment banks. Banks' key roles include accepting deposits, lending money, transferring funds, providing financial advice, and acting as trustees. They accept deposits from customers and pay interest. Banks then lend this money as loans to others and charge interest. This helps facilitate economic activity.

1. WHAT IS A BANK ?
A bank is a financial institution licensed to receive
deposits and make loans. Banks may also provide
financial services such as wealth management,
currency exchange, and safe deposit boxes. There
are several different kinds of banks including retail
banks, commercial or corporate banks, and
investment banks. In most countries, banks are
regulated by the national government or central
bank.
ROLE OF BANKS

2. Accepting deposits from public/others (deposits)
Lending money to public (loans)
Transferring money from one place to another (remittances)
Credit creation
Acting as trustee
Keeping valuables in safe custody
Investment decisions and analysis
Government business
Other types of lending and transactions
ROLES (FUNCTIONS) OF A BANK

3. The form in which people hold money is as deposits with
banks. At a point of time, people need only some money for
their day-to-day needs. For instance, workers who receive
their salaries at the end of each month have extra cash at
the beginning of the month. So they deposit with the banks
by opening a bank account in their name. Banks accept
their deposits and also pay an amount as interest on the
deposits. In this way people’s money is safe with the banks
and it earns an amount as interest. People also have the
provision to withdraw the money as and when require.
Since the deposits in the bank accounts can be withdrawn
on demand, these deposits are called demand deposits. It is
the facility which lends it the essential characteristics of
money. In these deposits a cheque plays a very significant
and a vital role of banks.
 DEPOSITSWITH BANKS

4. In India, the most loan needed people are in rural areas to
complete their requirements such as, agriculture related, to
set up small manufacturing industries and many more.
Many banks have been made in these areas to give loans to
them. The banks provide loan to them by depositing a
collateral from the loan taker. The loan has some interest
on it which has to paid to the banks. Sometimes the
farmers are not able to
 LOAN ACTIVITIES OF BANKS

5. repay the loan and to pay it they have to sell a part of the land
which is vey painful for them.This is an example of what is
commonly called debt-trap.
As we have seen that the government is forgiving the loans of
farmers, is a relief for the farmers in case of the crop failure.
There are home loans, car loans, personal
loans, payday loans, student loans and many more types of
loans in addition to the farming loan.
Loan is a very important part of banks.

6. A remittance refers to money that is sent or transferred to
another party. The term is derived from the word remit, which
means to send back. Remittances can be sent via a wire
transfer, electronic payment system, mail, draft, or check.
Remittances can be used for any type of payment including
invoices or other obligations. But the term is typically used to
refer to money sent to family members back in a person's
home country.
Remittances play an increasingly large role in the economies
of small and developing countries.They are also seen as an
important part of disaster relief and often exceed official
development assistance (ODA). Remittances are often used as
a way to help raise the standard of living for people abroad
and help combat global poverty. In fact, since the late 1990s,
remittances have exceeded development aid,
 Remittance

7. and in some cases make up a significant portion of a country's gross
domestic product (GDP).
Remittances are used to help those living in less developed nations
open bank accounts, which helps promote economic development
and banks.
India was the top recipient of Remittances worldwide in
2018.

8. The Reserve Bank of India (RBI) is India's central bank,
which controls the issue and supply of the Indian rupee. RBI
is the regulator of the entire Banking in India. RBI plays an
important part in the Development Strategy of
the Government of India.
RBI regulates commercial banks and non-banking finance
companies working in India. It serves as the leader of the
banking system and the money market. It regulates money
supply and credit in the country.The RBI carries out India's
monetary policy and exercises supervision and control over
banks and non-banking finance companies in India. RBI was
set
RESERVE BANK OF INDIA

9. up in 1935 under the Reserve Bank of India Act,1934.
Until the Monetary Policy Committee was established in 2016, it
also controlled monetary policy in India.[7] It commenced its
operations on 1 April 1935 in accordance with the Reserve Bank of
India Act, 1934. The original share capital was divided into shares of
100 each fully paid. Following India's independence on 15 August
1947, the RBI was nationalised on 1 January 1949.
It is a member bank of the Asian Clearing Union. The general
superintendence and direction of the RBI is entrusted with the 21-
member central board of directors: the governor; four deputy
governors; two finance ministry representatives (usually
the Economic Affairs Secretary and the Financial Services
Secretary); ten government-nominated directors to represent
important elements of India's economy; and four directors to
represent local boards headquartered
at Bombay, Calcutta, Madras and the capital New Delhi. Each of
these local boards consists of five members who represent regional
interests, the interests of co-operative and indigenous banks.

10. CONCLUSION
This concludes that the bank is a important part of
the country’s economy and its functions which it
performs are also very important. Hence we can
say that the banks plays a very vital role to the
citizens of INDIA and as well of other countries.
Sometimes people are caught in debt trap but
government ensures that the people gets the
benefit from bank.