Meaning of bank

Bank are those financial institutions which are

established under a current Act to perform
monetary and credit transactions. The word bank
was derived from Italian word Banco which
means Bench. In the ancient time Italian gold
smith used to perform their monetary task by
sitting on a bench so, banco used to denote
monetary transactions. So bank is known as dealer
of money.
Generally, an institution established by law, which
deals with money and credit is called Bank. A bank
is an institution which deals with money and credit.
It accepts deposits from the public and mobilizes
the fund to productive sectors. It also provides
remittance facilities to transfer money from one
place to another. Generally, bank accepts deposits
from business, institutions and individuals which is
mobilized into productive sectors mainly business
and customer leading. So bank is known as a
dealer of money.1 Banks are the principle source of
credit for millions of individuals and families and
for many units of government. They are among the
most important financial institutions in the
economy. Moreover, for small local businesses
1 Singh, Hriday Bir(2014), Banking and Insurance, Asia Book Publications, P
3.

ranging from grocery stores to automobile delears ,

banks are often the major source of credit to stock
the shelves with merchandise.2
Bank is a financial intermediary accepting deposits
and granting loans. It offers the widest menu of
services of any financial institutions. There is no
concrete, single and universal definitions of bank.
Some of the major and noteable definitions of bank
are as cited:

Meaning of Central Bank

Central bank is known as banker of bank in any

economy. It is the apex bank of the country
involved in monetary management by maintaining
economic policy, safety of money and helping the
government for the rapid development, mobilizing
unused capital for the establishment of big projects
and programmes in the country.
It is the gurdain of all banking institutions
established in an economy..bank of ...was
the first central bank of the world which was
established in .. the central bank if Nepal is
Nepal Rastra Bank(NRB) which was established
under Nepal Rastra Bank Act, 2012 B. S. on 2013 B.
S. Baishak, 14. Central bank is totally owned,
managed and controlled by the government so, it
doesnot have the motto of earning profit.
The definitions of central bank are listed as below:
Crux points
2 ibid

1.Central bank is the highest monetary authority

of the country.
2.It is the centre of monetary and banking
system.
3.It is government controlled bank in a country.
4.It is the organ of government that undertakes
the majour financial operation of the
government.
5.It enacts monetary policy for the country.

Commercial bank

commercial bank is regarded as the oldest

financial institution in the history of bank. The
history of banking evolved through the
establishment of commercial banks. Banks
which are established to accept deposits and
grant loans to the industries, indivudals and
traders with a view to earn profit are known as
commercial bank. The first commercial bank of
Nepal is Nepal Bank Limited which was
established in 1994 B. S. after that in 2020 B.S.
Rastrya Banijya Bank was eatablished. The two
are the main and big commercial banks of
Nepal which is operated by Nepalese
government. Kumari bank limited, Everest
bank, Nepal Investment bank, Machhapuchre
bank etc. are some examples of commercial
banks. In Nepal upto .there are more than
. Commercial banks in Nepal.