 |
BANK
The word bank is derived from a French word "Bancus" or "Banque" you which means a bench or a money exchange table. So a bank is a place where those who have surplus of money and those who have deficiency of money meet together.
Bank is a financial institution that accepts customer deposits, gives loans and advances and transfers money from one account to another account.
BANKING
The service provided by a bank or the activity of the bank is known as banking.
According to" 'Section 5(B)' of banking regulation act 1949" banking is the process which involves accepting customer deposit lendings to the public and other financial services.
According to " 'Section 7' of banking regulation act 1949" the word 'bank',' banker' and 'banking' can only be used by the banking company in its name no company other than that can use the name.
The banking industry is run by RBI act 1934 and banking regulation of 1949.
ROLE OF BANK
It is encourage saving mobilization heartbeat among the people.
It helps the country for its development by the providing loan to the farmer and the small industry as well as cooperative.
Iti also helps in raising the standard of living of the people in the large sector.
FUNCTION OF A BANK
The bank function easy broadly divided into two types
PRIMARY FUNCTION
• Accepting customer deposits.
• Giving loan and advance.
SECONDARY FUNCTION
Apart from the primary function bank has the secondary function like-
Transfer of money from one account to another account.
It is provide locker facility and vault facility to keep the safe custody of customer valuables.
Bank are providing Bancassurance service to its customer.
Bancassurance means selling insurance product in Bank branches.
Apart from that banks are also provide some para banking activity or service to its customers.
Para banking activities means selling of third party products like mutual funds, gold bonds etc.