By A.

ABDOUL FEROZE

Bank : A system of trading money which: provides a safe place to save excess cash, known as deposits. supplies liquidity to the economy by loaning this money out to help businesses grow and to allow consumers to purchase consumer needs.

 An

intermediary, which handles other peoples money both for their advantage and to its own profits. Plays an important role in the economy of any country as they hold the saving of the public. Banker : a person who deals with money of others (dealer in money).

Banking system is classified based on

Ownership

Types
Kinds Business

Public sector Banks - fully owned & controlled by govt eg: State Bank of India Private sector Banks - owned by group of shareholders eg: HDFC Bank Cooperative Banks - service motive, helps weaker section of the society. eg: State Cooperative Bank Foreign Banks - foreign countries having their branches in India eg: ABN-AMRO Bank

a.
b. c. d. e.

Unit Bank Branch Bank Group Bank Chain Bank Correspondent Bank

Commercial Bank - loan 4 comm. activities such as trade, transport, warehousing, etc Industrial Bank - loan to industries Co-operative Bank - 4 weaker sections, service motive, low interest. Agricultural development Bank - sim.to co-op, provide long term loan for agriculture Savings Bank post office, encourage peoples savings. Foreign Banks provide foreign exchange Central Banks leader, authority to issue notes, controls monetary flow, exchange rate, govt.account