Bank Transactions 10th Notes KSEEB Social Science
→ Banks developed about two hundred years ago.
→ The term ‘Bank’ is derived from Italian word ‘Banco’ or from a French word ‘Banque’, both mean a Bench’ or ‘Money exchange table’
→ Banks are financial institutions which use the money deposited by customers as investments and have agreed to return it whenever the customers require their money.
→ A Banking’company is a company which transacts the business with finance. The services of banks are called ‘Banking’.
→ The characterises of a Bank are:
- Dealing with Money
- Individual / Firm or Company
- Acceptance of Deposits
- Lending Loans
- Payment and withdrawal.
- Agency and utility service
- Profit and service orientation
- Ever increasing function
- Connecting Link
- Banking Business
- Name Identity
→ Functions of Banks are :
- Accepting deposits from public and others.
- Lending money to public (Loans) and other institutions.
- Transferring money from one place to another (Remittances)
- Collecting money on cheques, drafts and bills.
- Discounting of bills.
- Hiring safe deposit lockers.
- Conducting foreign exchange transactions.
- Keeping valuables in safe custody.
- Issuing letters of credit and guarantee
- Conducting government transactions (State & Central)
→ Relationship with Bankers and customers:
→ The services offered by banks are
- Debit Card and Credit Cards
- Personal Loans
- Home and Vehicle Loans
- Mutual Funds
- Safe Deposit Lockers
- Trust Services
- Signature Guarantees
- ‘Bank transation’ is an activity involving in money or exchange of money in a bank account.
→ All banking transactions in India are controlled by The Reserve Bank of India”
→ RBI formulates the monetary policies which should be followed by all banks.
→ The ‘POSTAL DEPARTMENT’ also provides various financial services such as Post -Office savings Bank, Issue of National Savings Certificate; Kissan Vikas Patra, Monthly Recurring deposits, Postal Life Insurance, Pension Payment, Money transfer etc.
→ The different types of banks are:
- Reserve Bank
- Land Development Banks
- Commercial Banks
- Indigenous Banks
- Industrial Developments Banks
- Co-operative Banks
→ The kinds of accounts that banks offer area are
- Savings Bank Account
- Current Account
- Recurring Deposit Account
- Term or Fixed Deposit Account
→ Procedure to open a bank Account
- Decide the type of account
- Approach a bank of your Choice
- Fill of the bank account proposal form.
- Provide reference to open the account
- Submit the proposal form duly filled.
- Get the form verified by the bank officer
- Deposit the initial amount through the bank challan.
→ The advantages of opening a bank account are :
Bank account facilitates safe custody of money.
- Bank account helps in making payments.
- Bank account helps in collection of money.
- Bank account holders get advances and loans.
- Bank account helps in smooth financial transactions.
- Bank account holders can get safe deposit locker facility.
→ INDIGENOUS: Native
→ RECURRING: Repeating
→ SUBSIDIARY: Controlled by a parent company