UNIT-13
BANKING
13.2 WHAT IS A BANK :-
→ Bank is an instituation which deals in money.
→ Banks accept money from those who are not needed it immediately and lend it to those who need it.
• Features of Bank :-
(1) Accept of despoits of money form the public.
(2) Profitable employemetn of such funds.
(3) Obligation to refund despoits on demand.
(4) Lending or investing money.
(5) Banking as the main business.
13.3 TYPES OF BANKS :-
(1) Commercial Banks.
(2) Co-opertaive Banks.
(3) Land Development Banks.
(4) Regional Rural Banks.
(5) Industrail Banks.
(6) Central Banks.
13.4 ROLE OF COMMERCIAL BANKS :-
(1) Collectin of Deposits.
(2) Facilitate Payments.
(3) Provide Loans and Advances.
(4) Provide Credit Information.
(5) Discounting of Bills.
(6) Collectin of cheques.
(7) Safety of valuables.
(8) Remittance of money.
13.5 BANKER AND CUSTOMER :-
• Who is a Customer ?
→ The Customer of a bank means a person who has an account with a bank.
• Relaionship between Banker and Customer :-
(1) Contractual Relationship.
(2) Debtor and Creditor Relationship.
(3) Bailee and Bailor Relationship.
(4) Turste Beneficiary Relaionship.
(5) Principal-Agent Relationship.
• Duties of a Bank :-
(1) Obligation of Honour Cheques.
(2) Obligation of Maintain Secrecy.
(3) Obligation to follow Customer's Instrucutions.
(4) Obligation to Maintain Proper Records.
(5) Obligation to give Notice Before Closign the Account.
13.6 TYPES OF BANK ACCOUNTS :-
(1) Fixed Deposite Account.
(2) Current Deposite Account.
(3) Savings Bank Account.
(4) Recurring Deposit Account.
13.7 MODES OF MAKING PAYMENTS :-
(1) Cheques
(2) Drafts
(3) Standing Instrucution
13.8 ADVANCES :-
(1) Loans
(2) Overdraft
(3) Cash Credit
(4) Discounting of Bills.
13.10 OTHER BANK SERVICES :-
(1) Collection of Money on behalf of Customer.
(2) Leasing.
(3) Tax Consultancy.
(4) Merchant Banking Services.
(5) Issues of Credit Cards.
