Friends bank is considered an important financial institution for the economic and social development of any country. There are many types of banks in our country India, whose branches are easily seen in different cities and villages of the country. In the same way, many types of banks and their branches work in other countries as well. If you have come to know about the bank ,then this article has given detailed information about what is a bank? What are the features of the bank? How many types of banks are there? What is the work of bank and what is the importance of banks in our life.
What Is Bank ?
Bank is a type of institution through which business is done in currency. That is, deposit protection and withdrawal of money by this institution and apart from providing loan and deduction facilities, it provides arrangements for sending money from one place to another. In short, ‘Bank’ is that institution, through which, for the purpose of earning profit, deposits of public money are accepted and loans are fulfilled.
Types of Banks
- Central Bank
The central bank is the only apex bank that is owned by the government. Almost all countries have a central bank. For example, the central bank of our country India is the Reserve Bank of India, through which guidelines are issued for all the banks in the country.
- Commercial Bank
Banks which provide various types of banking services along with accepting deposits and providing loans to public money for the purpose of earning profit, those banks are called commercial banks, business banks or commercial banks. In India , Public Sector Commercial Banks , Private Sector Commercial Banks , Foreign Sector Commercial Banks and Regional Rural Banks are providing banking facilities to the people.
- Cooperative Bank
Co-operative banks are those banks which are formed and function on the basis of co-operatives. The cooperative bank provides loans to small businesses and farmers in both urban and rural areas. There are co-operative banks in most parts of the world. The work of cooperative banks in India is monitored by the Reserve Bank of India.
- Development Bank
Development Bank is such a financial institution established by RBI, which does not work directly with the public, but works for long-term loan management for special sectors such as industrial, agricultural and other types of development.
- Payments Bank
Payments banks are a special type of bank, which has recently been permitted by the apex bank of the country, RBI, for certain limited banking activities. Payments banks can take deposits from customers but cannot give loans.
The central bank conducts the country’s monetary policy and monitors the banking system, while commercial banks provide facilities for opening savings accounts, current accounts, fixed accounts, recurring accounts, loans and other types of banking services to the public for accepting deposits. and provides financial advice.
Objectives of Banks
- To encourage the tendency of savings in the public.
- Large capital formation through savings.
- Promoting the trend of making money from money.
- To control money market for economic stability.
- To advise and cooperate with the government on economic issues.
- To help the government for trade, business and economic, social development.
Importance of Banks
Banks have a very important contribution in the economic and social development of the country. For example- security of public money, interest on deposited money, and by giving loans to the needy, helps in furthering its work.
What is bank called in Hindi?
Bank is called Adhikosh in Hindi.
full form of bank