Meaning of Banks
A bank is a financial Institution that provides banking and other financial services to their customers. A bank Is generally understood as an institution which provides Fundamental Banking Services such as accepting deposits and providing loans.
There are also non-banking institutions that provide certain banking services without meeting the legal definition of a bank.
A banking system also referred as a system provided by the bank which offers cash management services for customers, reporting the transactions of their accounts and portfolios, throughout the day.
The following functions of the banks are as follows
• To provide the security to the savings of customers.
• To control the supply of money and credit.
• To encourage public confidence in the working of the financial system increase savings speedily and efficiently.
• To avoid focus of financial powers in the hands of a few individuals and institutions.
• To set equal norms and conditions (i.e, rate Interest, period of lending etc) to all types of customers.
Banking Regulation Act, 1949 A bank is a financial Institution that provides banking and other financial services to their customers. A bank Is generally understood as an institution which provides Fundamental Banking Services such as accepting deposits and providing loans.
There are also non-banking institutions that provide certain banking services without meeting the legal definition of a bank.
A banking system also referred as a system provided by the bank which offers cash management services for customers, reporting the transactions of their accounts and portfolios, throughout the day.
The following functions of the banks are as follows
• To provide the security to the savings of customers.
• To control the supply of money and credit.
• To encourage public confidence in the working of the financial system increase savings speedily and efficiently.
• To avoid focus of financial powers in the hands of a few individuals and institutions.
• To set equal norms and conditions (i.e, rate Interest, period of lending etc) to all types of customers.
The Banking Regulation Act, enacted in 1949, has been a milestone in the history of banking in India This act provides a framework for regulation and supervision of commercial banking activity
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