9/13/24, 10:17 Banking and insurance short note
AM by fasil
Definition of a Bank
Banking Regulation Act of 1949 defines banking as “accepting for the purpose of
lending or investment, ofdeposits of money from the public, repayable on demand or
otherwise, and withdrawable by cheque, draft, order or otherwise”.
Characteristics / Features of a Bank
1. Dealing in Money
2. Individual / Firm / Company
3. Acceptance of Deposit
4. Giving Advances
5. Payment and Withdrawal
6. Agency and Utility Services
7. Profit and Service Orientation
9. Connecting Link
10. Banking Business
Types of banks
1. Commercial banks/Deposit banks Banks accept deposits from
public and lend them mainly for commercialpurposes for
comparatively shorterperiods are called Commercial Banks,
They are oldest bankinginstitution in the organised sector
Features of Commercial banks
• They accepts deposits on various accounts
• They are the manufacturers of money
• The perform many subsidiary services to thecustomer.
• They perform many innovative services to thecustomers
2. Industrial banks/Investment banks which provide fixed capital to industries.
They are also called investment banks,They are seen in countries like US, Canada,
Japan, Finland, and GermanyIn India industriallike IFC and SFC Features of
Industrial
Banks Participate in management. •
n making right
relating to industries
3. Agricultural banks provide finance to agriculture and alliedsectors,
4. Exchange banks
Exchange banks finances foreign exchange business (export, import business) of a
pg. 1 Co-operative College Vengara Banking&Insurance by Fasil Poniyeri 7902880004
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,9/13/24, 10:17 Banking and insurance short note
AM by fasil
country. The main functions of exchange banks are remitting money fromone country
to another country, discounting of foreign bills, buying and selling gold and silver,
helping importand export trade etc.
5. Savings bank which specialise in themobilisation of small savings of the middle
and lowincome group.
pg. 2 Co-operative College Vengara Banking&Insurance by Fasil Poniyeri 7902880004
about:bl 2/
, 9/13/24, 10:17 Banking and insurance short note
AM by fasil
about:bl 3/
AM by fasil
Definition of a Bank
Banking Regulation Act of 1949 defines banking as “accepting for the purpose of
lending or investment, ofdeposits of money from the public, repayable on demand or
otherwise, and withdrawable by cheque, draft, order or otherwise”.
Characteristics / Features of a Bank
1. Dealing in Money
2. Individual / Firm / Company
3. Acceptance of Deposit
4. Giving Advances
5. Payment and Withdrawal
6. Agency and Utility Services
7. Profit and Service Orientation
9. Connecting Link
10. Banking Business
Types of banks
1. Commercial banks/Deposit banks Banks accept deposits from
public and lend them mainly for commercialpurposes for
comparatively shorterperiods are called Commercial Banks,
They are oldest bankinginstitution in the organised sector
Features of Commercial banks
• They accepts deposits on various accounts
• They are the manufacturers of money
• The perform many subsidiary services to thecustomer.
• They perform many innovative services to thecustomers
2. Industrial banks/Investment banks which provide fixed capital to industries.
They are also called investment banks,They are seen in countries like US, Canada,
Japan, Finland, and GermanyIn India industriallike IFC and SFC Features of
Industrial
Banks Participate in management. •
n making right
relating to industries
3. Agricultural banks provide finance to agriculture and alliedsectors,
4. Exchange banks
Exchange banks finances foreign exchange business (export, import business) of a
pg. 1 Co-operative College Vengara Banking&Insurance by Fasil Poniyeri 7902880004
about:bl 1/
,9/13/24, 10:17 Banking and insurance short note
AM by fasil
country. The main functions of exchange banks are remitting money fromone country
to another country, discounting of foreign bills, buying and selling gold and silver,
helping importand export trade etc.
5. Savings bank which specialise in themobilisation of small savings of the middle
and lowincome group.
pg. 2 Co-operative College Vengara Banking&Insurance by Fasil Poniyeri 7902880004
about:bl 2/
, 9/13/24, 10:17 Banking and insurance short note
AM by fasil
about:bl 3/
