Bank Meaning - Helpful in Banking Exam & Interview
Bank is lawful organisation,which accept deposits that cab withdrawn on demand.It also lend money to individuals and business house that need it.
Bank are such places where people can deposit their savings with the assurance that they will be able to withdrawn money from the deposits whenever required.People who wish to borrow money for business and other purpose can also get loan from the banks at reasonable rate of interest.
Banks also render many other useful services like - collections of bills,payment of foreign bills,safe-keeping of jewellery and other valuable items,certifying the credit-worthiness of business,and so on.
Banks accept deposits from the general public as well as from the business community.Any one who save money for future can deposit his saving in a bank.Businessman have income from sales out of which they have to make payment for expenses from time to time.Bank give two assurance to the depositors -
(1) Safety of Deposits
(2) Withdrawal of Deposits,whenever they need
On deposits, bank gives interest,which adds to the original amount of deposit.It is great incentive to the depositors.It promotes saving habits among the public. On the basis of deposits bank also grant loans and advances to farmers,traders and businessman for productive purpose. Thereby banks contribute to the economic development of the country and well being of the people in general.Interest relieved on loan and fees charged for services which exceed the interest allowed on deposits re the main sources of income for banks from which they meet their administrative expenses.
The activities carried on by banks are called banking activity.'Banking' s an activity involves acceptance of deposits and lending or investment of money.It facilitates business activity by providing money and certain services .Therefore , banking is an important auxiliary to trade.It is not only provides money from production of goods and services but also facilitates their exchange between buyer and seller.
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