This document provides information about group members, banks, commercial banks, types of accounts, banker's funds, banker's capital, reserve funds, liquid assets, types of deposits, and fixed or term deposits. It lists six group members and discusses what a bank is, how commercial banks operate, various types of accounts offered including current, basic banking, freedom, and profit and loss sharing accounts. It also outlines the sources that make up banker's funds, including capital, reserve funds, liquid assets, and deposits.

2. GROUP MEMBERS
o Muhammad Musaab Khetran
o Muhammad Umair khalid
o Maaz bin Amir
o Huma Shahid
o Tuyiba Kousar
o Sania Abbasi

3. BANK
o Bank is said to be the custodian of your valuables
o Financial intermediary which accepts deposits
and lend money either directly by loaning or
indirectly through capital market
o Financial institution licensed to accept deposits
by Government or Central bank as a regulatory
authority

4. COMMERCIAL BANKS
o Commercial banks are companies which transact
business of banking under the ordinance of 1962
section 5(b)
o Banking means accepting for the purpose of
lending or investment of deposits from public
repayable on demand, by cheques , drafts ,orders
and other ways

5. o In accordance with section 7 banking companies
ordinance says
o Borrowing, raising, taking up money lending or
advancing either with security or without security
the drawing, making, accepting, discounting,
buying, selling collecting and dealing in
following explained next

6. o Bills of exchange
A non-interest-bearing written order used in
national and international trade that binds one
party to pay a fixed sum of money to another
party at a predetermined future date.
o Hundis
An unconditional order in writing made by a
person directing another to pay a certain sum of
money to a person named in the order

7. BILL OF EXCHANGE AND HUNDI

8. PROMISSORY NOTES
o It is a legal promise in which one party promises
in writing to pay a determinate sum of money to
the other either at a fixed or determinable future
time or on demand of the payee

9. BILL OF LADING
o A document issued by a carrier to a shipper of
goods.
a) It is a receipt for the goods shipped
b) It evidences the contract of carriage
c) It serves as a document of title

10. o Railway receipts
It is given by railway authority after receiving
goods and is a proof of goods received by
railway and delivery is done by receipts
o Musharika certificates
These are certificates of Sharia as profit and loss
sharing on investments

11. MODARABA CERTIFICATE
o Modaraba is a form of contract a subscriber
(Rabb-ul-maal) with his money and the manager
(Mudarib) with his efforts and skills
o After setting aside the agreed share of Mudarib
the profits earned on investments are distributed
among the subscriber

12. COMMERCIAL BANKS IN 1973
o At the time of independence there were only few
banks left here in Pakistan but they progressed as
in 1973. 14 scheduled banks with 3323 offices
inside and 74 offices in foreign. Banks were
o National bank of Pakistan(still working)
o Habib bank limited (still working)
o Hbl (overseas) limited

13. o Ubl (still in progress)
o Mcb (still in progress)
o Commerce bank limited(bcci once ranked 7th
largest in world)
o Standard bank limited
o Australasia bank limited (now Allied bank
limited)

14. o Bank of Bahawalpur limited(merged in NBP)
o Premier bank limited
o Sarhad bank limited
o Lahore commercial bank
o Punjab provincial co-operative bank limited
o These were working in 1973 and many were
closed after hard situation of economy and
Nationalization policy

15. TYPES OF ACCOUNTS
Current account
o Current bank account is for higher number of
regular transactions with the bank.
o It includes deposits, withdrawals, and contra
transactions. It is also known as Demand Deposit
Account.
o It can be of commercial or co-operative bank
current account is opened on deposit of 100
Rupees

16. BASIC BANKING ACCOUNT
a) The minimum initial deposit will be Rs 1000
b) Will be non-remunerative account.
c) No limit on minimum balance
d) Maximum two deposit transactions and two
chequing withdrawals are allowed, free of
charge, through cash/clearing per month
e) Unlimited, free of charge, ATM withdrawals
from the banks

17. FREEDOM ACCOUNTS
o On a monthly balance of Rs. 50,000 or more,
avail a host of free services
a) Free cash withdrawal & deposit transactions
b) online funds transfer
c) Banker’s Cheques
d) cheque books
e) debit card issuance
f) ATM transactions

18. Pls saving account
o It is profit and loss sharing saving account
o Profit paid bi-annually
o Profit paid on monthly average balance
Daily Munafa Account
o • Profit calculated daily, paid every month
o • Up to 7.55% profit per annum
o • Debit Card and Inter Branch Transaction System
o • Minimum balance of Rs. 20,000

19. VALUE ACCOUNT
a) 7.50% profit per annum
b) Deposit ranges from Rs. 10,000 to Rs. 1,000,000
c) Profit credited quarterly
d) Profit calculated monthly
e) 2 withdrawals free every month with Secure
investment

20. DAILY PROGRESSIVE ACCOUNT
Upgrade your account daily saving type
a) Unique transactional account for Institutions
b) Profit calculated daily, paid every month
c) Up to 7.71% profit per annum
d) Inter Branch Transaction System
e) Minimum balance of Rs. 20,000

21. THE BANKER’S FUNDS
o Banker’s funds can be
a) own paid up capital
b) reserve funds
c) liquid assets
d) money from depositors in current, fixed and
term deposits

22. BANKER’S CAPITAL
o It is the amount with which bank is registered or
authorized and is also called as nominal or
authorized capital
o It has further two types paid up capital which is
banking company has actually received from
public
o Subscribed capital is that part of issued capital
which is applied by public as shares issued to
venders and promoters

23. RESERVE FUNDS
o Consisting of accumulated undivided trading
profits set aside to provide for contingencies any
unusual call upon bank resources
o In many Pakistani banks reserve funds has
approached more then a paid up capital

24. LIQUID ASSETS
o Liquid assets are maintained in form of cash on
hand and balance with SBP
a) Money at call and short notice
b) Discounted bills
c) Gold and bullions are as liquid assets
d) 15% Reserve is to be maintained at any cost by
each bank

25. TYPES OF DEPOSITS
Current deposits
o Payable to customers on demand at any time.
o When a banker accepts these he incurs the
obligation of paying all cheques etc drawn
against him to extent of balance in account
o No limits of acceptance of deposits

26. FIXED OR TERM DEPOSITS
o Can be withdrawn after a specific time period
o Period for which these deposits are kept by bank
varies from three months to five years in light of
agreement between the customer and banker

27. SAVING DEPOSITS
o Introduced by trustee savings bank in England
o Receipts of moneys from depositors without any
benefit to organization
o Main objective is to encourage saving among
public as in
o Children and married household women
o Very small amounts are accepted at any time