what is bank and explain the functions of bank.
Answers
Explaianion :
An organization which keeps money safely for its customers. The office or building of such an organization. You can take money out, save, borrow or exchange money at a bank.
The function of the bank includes keeping the money safe and encourage the people to understand the value of savings. The bank invest our money in other fundamental and demanded business through which it makes our profit as well.
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Answer:
Bank is a financial institution that provides loans and accepts deposits.
According to The Indian Banking Regulation Act
"A bank is any company which transacts the business of banking."
Functions of bank:
Primary Functions Of The Bank
Primary here means compulsory
1. Accepting Deposits: Deposits are the amount of money that a customer hands over to the bank. This is known as making a deposit. The deposits are of a few types namely: Saving Deposit, Fixed Deposit, Current Deposit, and the Recurrent Deposit. The various deposit schemes are based on the type of deposit and the frequency of depositing.
2. Granting Loans and Advances: The bank lends people money on a time-interest basis. Each loan amount is passed by the bank after due consideration and securing the bank’s profit. The bank also gives advances to its customers. These are also the primary functions of the banks. The bank provides the services of an overdraft, cash credits, loans, and discounting of the bill of exchange.
Secondary Functions Of The Bank
Secondary here means Optional
Agency Functions: The bank is an agent for its customers in a way that it invests on behalf of its customers. Acting as the agent of the customer the bank may transfer funds, the collection of cheques, periodic payments, portfolio management, periodic collections, and several other agency functions. All of these functions are the secondary functions of the bank.
Please check textbook for details
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