Main features of banking?
Answers
Dealing in Money. Bank is a financial institution which deals with other people's money i.e. money given by depositors.
Individual / Firm / Company.
Acceptance of Deposit.
Giving Advances.
Payment and Withdrawal.
Agency and Utility Services.
Profit and Service Orientation.
Ever increasing Functions.
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i) Dealing in money:
The banks accept deposits from the public and advancing them as loans to the needy people.
(ii) Deposits must be withdrawn able:
The deposits (other than fixed deposits) made by the public can be withdraw able by cheques, draft or otherwise, i.e., the bank issue and pay cheques .
(iii) Dealing with credit:
The banks are the institutions that can create credit i.e., creation of additional money for lending.
(iv) Commercial in nature:
Since all the banking functions are carried on with the aim of making profit, it is regarded as a commercial institution.
(v) Nature of agent:
Besides the basic functions of accepting deposits and lending money as loans, banks possess the character of an agent because of its various agency services