Speech on changing trends of money
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India has a large network of banks and other financial institutions spread across the length and breadth of the country. A bank may be defined as an institution which accepts deposits from the public for the purpose of lending, and makes payment on the instructions of its customers by passing their cheques within their balance or sanctioned limit. Thus, accepting deposit, making loans and passing cheques, etc. are the major functions of a bank.
Before the nationalisation of 14 private sector banks in 1969, and six other banks in 1980, the main motive of banks in India was to earn profit from their transactions like a business house. With nationalisation they were given a social responsibility of contributing towards social development by making their activities under the rules framed by the government and implemented through the controller bank-The Reserve Bank of India. Certain areas which were earmarked as per national priority such as small scale industry, agriculture, small business, professional and self-employment, etc.
started getting proper attention from the banks as a specific percentage of the bank’s total lending is to be directed towards these sectors. This policy of social priorities is still going on. Some other areas like housing and education have been added in the Priority Sector.
They are so programmed that they not only calculate the periodic interest but also credit it to the respective customer’s account. They also tally the balances of each head on a daily basis. The chances of error have been reduced to almost nil.
With the application of new technology, new banking products in the shape of credit cards, debit cards and ATMs have been launched. Withdrawal of money from the account has become so convenient. There is no need to go to the particular branch where you are maintaining the account and present the cheque to withdraw the money. If you have a credit card or a debit card, you can withdraw the amount from any of the ATM counter by inserting your card in the slot, punch your code and pass necessary instructions through the keys on the machine.
Hope it helps you buddy...
Before the nationalisation of 14 private sector banks in 1969, and six other banks in 1980, the main motive of banks in India was to earn profit from their transactions like a business house. With nationalisation they were given a social responsibility of contributing towards social development by making their activities under the rules framed by the government and implemented through the controller bank-The Reserve Bank of India. Certain areas which were earmarked as per national priority such as small scale industry, agriculture, small business, professional and self-employment, etc.
started getting proper attention from the banks as a specific percentage of the bank’s total lending is to be directed towards these sectors. This policy of social priorities is still going on. Some other areas like housing and education have been added in the Priority Sector.
They are so programmed that they not only calculate the periodic interest but also credit it to the respective customer’s account. They also tally the balances of each head on a daily basis. The chances of error have been reduced to almost nil.
With the application of new technology, new banking products in the shape of credit cards, debit cards and ATMs have been launched. Withdrawal of money from the account has become so convenient. There is no need to go to the particular branch where you are maintaining the account and present the cheque to withdraw the money. If you have a credit card or a debit card, you can withdraw the amount from any of the ATM counter by inserting your card in the slot, punch your code and pass necessary instructions through the keys on the machine.
Hope it helps you buddy...
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