Primary Functions
Accepting Deposits
A Bank Acts Is a Custodian by People Saving in The Form of Deposit and Gives Interest in Return
Types Of Deposit A Bank Except
There Are Four Different Ways in Which a Bank Except Deposits They Are Current Account Deposits Saving Account Deposits Recurring Deposit Fixed Deposit A Customer Deposit Money in Banks by Opening Any of This Account
Current Account Deposit
A Business From Or An Individual Can Open A Current Account With The Bank The Main Objective Of This Account Is To Conduct Business Related Transaction Bank Provides More Liquidity To Current Account Money Can Be Withdrawn Number Of Times During A Day No Interest Is Given To The Customer Of Current Account At Times Bank Charges Service Charge On This Account The Bank Also Provides Overdraft Facility On This Account The Customer Is Able To Withdraw More Money Than The Available Balance In The Account This Order Facility Helps The Business Or An Individual To Overcome Short Term Money Deficiency
Saving Account Deposits
Saving Account Is an Account Provided by A Bank for Individual to Save Money and Uninterest on The Case Held in The Bank Majority of People Uses Saving Account to Deposit the Saving as A Bank Provides Interest on This Account the Account Holder Can Withdraw Money Using Check Withdrawal Slip Debit Card and Credit Card
Recurring Deposit
This Type of Deposit Accounts Allows People to Deposit Small Amount of Money Every Month the Deposit Gradually Increases and The Bank Provides Interest on The Accumulated Amount Some Banks Mein Charge Penalty Along Width Sam Interest Loan Ife A Person Is Not Able Tu Deposit Mani Inez Dis Account Inez a Particular Month
Fixed Or Long-Term Deposit
This Deposits Are Fixed in Nature and Does Money Cannot Be Withdrawn as When Required by The Depositor Banks Pay Highest Rate of Interest Rate Compared to Other Deposit Accounts Banks Also Provide Over the Facility on Such Deposits
Providing Credit Facilities
Banks Provide Credit Facilities to Different Individual Such as Farmers Different Professionals Etc Who Are in Need of Money Under This System the Needy Once Borrow from The Bank and The Bank Charges in Test for The Credit Facility That It Provides the Interest Chargers Depends on The Purpose of Credit Whether the Credit Is Used for Personal Use Agriculture Activity or Business Activity the Credit Can Be for The Short-Term Medium Term or Long Term
| Functions of commercial bank |
| Current Account Deposit |
| Saving Account Deposits |
| Recurring Deposit |
| Providing Credit Facilities |
| Fixed Or Long-Term Deposit Payment And Withdrawal Facilities |
| Credit Creation |
| Enter Banking Transaction |
Payment And Withdrawal Facilities
A Bank Provides Easy Payment in Withdrawal Facilities to Its Customer the Various Facilities Are Check Withdrawal Slips and Drops Pay Order ATM Internet Banking Debit Card and Credit Card
Credit Creation
Credit Creation Is The Power Of Commercial Bank To Expand Deposit Through Loans Advances And Investment In Other Words On The Basis Of Cash Deposit Of The Customer In The Bank The Bank Max Loans And Advancement And Dis Increases In The Money Supply In The Market The Advance Much More Than What They Collect From People Inform Of Deposit The Creating Credit In The Economy Through The Process Of Credit Creation Commercial Bank Provide Finance To All Sector Of The Economy Does Making Them Mod Developed When The Credit Creation Of Bank Increases The Supply Of Money In The Economy Increases And Vice Versa
Enter Banking Transaction
A Bank Cannot Provide Short- or Long-Term Credit in The Form of Loans or Advances to Other Bank as And When Required
Short Term Credit Is Provided by One Bank to Another Through Central Bank and Is Called Coal Money and The Interest Rate of Call Money Is Call Money Rate.