What are Kinds of the bank and their function

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Kinds of Bank

Bank have performing different kind such as given below.

  • Saving banks
  • commercial banks
    • trade and commerce will be funded by the commercial banks
      • mobilizes the deposit
        • medium term
        • short term
    • every indian banks is commercial banks.
  • industrial banks
    • serving the purpose of upliftment of industry
      • long term investment
      • mobilized deposite

Types of bank

  • Structure
    • unit banks
    • branch banks
    • group banks
      • holding company
      • subsidary company
    • chain banks
    • consolidate banks
      • bank of different structure merging banks.
  • ownership
    • public banks
    • private banks
    • foreign banks
    • cooperative banks
  • function
    • saving banks
    • commercial banks
    • industrial banks
    • investment banks
      • research and advice( to industrial banks where to invest).
    • agriculture/ land banks
      • saving / deposit
      • loan
        • fix term loan
        • short term loan
      • for / from agriculture labour
    • cooperative banks
      • the banks is registered in the cooperative society act 1912
      • it lend short term of loan and also accepts deposits.
      • for labour ( on daily wages)
    • regional rural banks
    • exchange banks
      • to exchange the currency
    • indigenous banks
      • from the craft industries
    • central banks

composition of central banks

  • One manager
  • one director

Function of banks

  • Primary
    • directly
      • banking
        • accept deposite
          • Current account(demand deposite)
          • saving account (demand deposite)
          • fixed deposite(time deposite)
          • recurring deposite (time deposite)
        • giving loans
          • GST(short term)
          • overdraft
          • cash credit ( DD, cheque, money deposit)
        • discounting bill
  • Secondary
    • non-banking
      • example: civil rating , financing by not giving.

Diference between saving and current account

    Saving accountcurrent account
    1)on credit get invest.
    2)any person can open minor also by rules and regulation.
    3) proposal from(giving of assurance)
    4)least formality.
    5) minimum banks you has to be maintained.
    6)so get invest every credit.
    7)limited withdrawls.
    8)to promote middle class on saving.
    9)capping -maximum account(25,00,000). After this amount banks does not give interest, it became if you have that short of money then you have interest.
    10) there is no overdraft facilities.
    11) cheque book is optional.    		1) on debit get invest.
    2)not anyone can open the account who has letter by not mean( letter of introdution) can only have current account.
    3)not geted from.
    4) any person who has already act in that branch.
    5)Any reputed person.
    6)zero balance, debit you get interest, no limit on withdrawl, you can get your account in (-) minus.
    7)there is minimum limited over evendays, overdraft will not allowed then you are draged by banks.
    8)individual can also have current account , cheque book is mandatory.

    Nature and intend of banking

    Now a banking institution, thus not only accept deposit and advances loan but injact, it is a institution which provides financial liability to the country as a whole, therefore, a banking institution perform under reange of function and hence it can be set that so age of ICT, on the extent of banking system has inhanced tremendously. Now role and extent of the banks could be summerised under the following points:

    • Banks act as condition of the money and assets
    • banks act as investor
    • banks provides instance serves as ( which are earlier prohibited to banking sector)
    • It are providing E- services
    • banks are also agency fuction
    • offering portfolio management services
    • foreign exchange
    • under writing the share and debentures
    • issue draft, traveller cheque and letter of credit
    • loan sustainancy services.
    • social, responsibility programme etc,
    • Thus it can be said that the banks is not olny acting as itermediatory but also is performing in every possible manner so as to meet the economic and financial needs of its customer, hence it can be concluded that banking or the system is the backbone for the economic of any country.

    reference: orginal notes written by Riya Tiwari student LLB of United university Prayagraj Uttar Pradesh.

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