• A bank is an institution that is set up for borrowing, issuing, exchanging , taking deposits, safeguarding, or handling money under the laws and guidelines of the country or state in which it is located.
• Saving banks are established to create saving habit among the people. These banks are helpful for salaried people and low income groups. The deposits collected from customers are invested in bonds, securities, etc. At present most of the commercial banks carry the functions of savings banks.
• Commercial banks are established with an objective to help businessmen. These banks collect money from general public and give short-term loans to businessmen by way of cash credits, overdrafts, etc. Commercial banks provide various services like collecting cheques, bill of exchange, remittance money from one place to another place.
• Development banks collect cash by issuing shares & debentures and providing long-term loans to industries. The main objective of these banks is to provide long-term loans for expansion and modernisation of industries.
• Land Development banks are also known as Agricultural Banks because these are formed to finance agricultural sector. They also help in land development.
• Indigenous banks means Money Lenders and Sahukars. They collect deposits from general public and grant loans to the needy persons out of their own funds as well as from deposits. These indigenous banks are popular in villages and small towns. They perform combined functions of trading and banking activities. Certain well-known indian communities like Marwaries and Multani even today run specialised indigenous banks.
• Every country of the world has a central bank. In India, Reserve Bank of India, in U.S.A, Federal Reserve and in U.K, Bank of England. These central banks are the bankers of the other banks. They provide specialised functions i.e. issue of paper currency, working as bankers of government, supervising and controlling foreign exchange. A central bank is a non-profit making institution. It does not deal with the public but it deals with other banks. The principal responsibility of Central Bank is thorough control on currency of a country.
• Co-operative Banks generally give credit facilities to small farmers, salaried employees, small-scale industries, etc. Co-operative Banks are available in rural as well as in urban areas. The functions of these banks are just similar to commercial banks.
• Consumers bank is a new addition to the existing type of banks. Such banks are usually found only in advanced countries like U.S.A. and Germany. The main objective of this bank is to give loans to consumers for purchase of the durables like Motor car, television set, washing machine, furniture, etc. The consumers have to repay the loans in easy installments.
• Recently, one of my colleagues had gone to ICICI bank to deposit a sum exceeding Rs.20,000/- and he was advised by the bank to use ‘Quick Cash Deposit’ envelop to deposit cash over the counter. As per this system, the depositor has to put the cash inside a printed envelope(provided by the bank) and write the particulars like denomination, account number etc. in the space provided on the envelope. The envelope has to be sealed and deposited to the counter. The bank official will receive the envelope without checking the currency inside it. CONTINUE...
• My colleague was told that the bank is not taking cash deposit over the counter and instead they have introduced this system for cash deposit and all the customers have to go by this system only. This would mean that the customer will be depositing cash at his own risk without the bank’s confirmation of a valid and correct deposit.
• Use an instant cash card. To do this, you need to already have your debit card set up with your bank to use at an ATM.• Insert your card and enter your PIN number. If you dont have one, call your bank beforehand and request one. You will not be able to withdraw money without a PIN.• Follow the on-screen instructions. If you have more than one account (like both checking and savings) you need to specify which account you want the money to come from. Be sure to push the savings button. Then specify how much money you want to withdraw.
• The first thing that you have to do to get a bank loan is to apply for one. This is a process that is going to require a lot of information on your part. First of all, you have to know what kind of loan you are looking at, and how much money you are going to need. Next you have to be sure that you are going to be able to pay back the loan, so you have to know how much you want to make payments for. Also, you have to be able to tell the bank what you need the money for, how much money you need, and how you are going to pay them back. CONTINUE…
• The process of getting a bank loan can take a lot of time, and it can be very frustrating, but it is the best way to do it. If you get loans from other places, you might run into trouble with raised interest rates, extra fees, or even with money being demanded from you that you should not have to pay. Banks are reputable organizations that can afford to loan you money and that will always follow the rules of commerce. If you go with a bank loan, there are going to be rules and regulations that you will know about ahead of time and that cannot be broken.