Write type of bank any one function in detail
Answers
Answer:
What Is a Bank?
A bank is a lawful organisation that accepts deposits that can be withdrawn on demand. Banks are institutions that help the public in the management of their finances, public deposit their savings in banks with the assurance to withdraw money from the deposits whenever required.
Banks accept deposits from the general public and from the business community as well and give two assurances to the depositors –
Safety of deposit
Withdrawal of deposit, whenever needed
Banks give interest on deposits which adds to the original deposit amount and is a great incentive to the depositor. This promotes saving habits among the public. Bank also grants loans based on deposits thereby adding to the economic development of the country and well being of the general public. With this stature, it becomes important to understand the major functions of a bank.
Candidates can check the important Banking Abbreviations in the linked article.
Aspirants preparing for various government exams can check the important topics given below:
Unemployment In IndiaFamous Books and AuthorsMillets In IndiaLetter Writing FormatIdioms & PhrasesPrinciples Of InsuranceBanking ReformsTenses Rules
Important Functions of Bank
There are two types of functions of banks:
Primary functions – being primary are also called banking functions.
Secondary Functions
Both the types of functions of bank are explained below in detail:
Primary Functions of Bank
All banks have to perform two major primary functions namely:
Accepting of deposits
Granting of loans and advances
Accepting of Deposits