Banking & type of bank

Banking & type of bank

Banking , type of bank,Organized banking structure,Unorganized bank structure,bank difference,History of Banking System,Organized Banking Structure,Unorganized bank structure

bank & bank work

A. bank is an institution that accepts Dena from people and gives credit in advance by creating credit.

That is, such institutions which are partners in the financial behavior of a country are called banks. 

B.The following are the functions of these types of institutions:

1.  These institutions accept deposits from people and give interest on those deposits.
2.  These institutions provide loans to the people and are responsible for taking interest on the growth of those loans.
3.  Provides financial assistance in foreign trade.

C. These works can be done by organized sector and unorganized sector also.

Hence banking structure can also be of two types.

1. Organized banking structure 
2.  Unorganized bank structure

Organized Banking Structure: 

Under organized banking system, Reserve Bank of India and commercial banks can be placed. The term banking is generally used only for organized banking.

Under unorganized banking

moneylenders and moneylenders (Money | Lenders) etc. can also be placed, which are also called as domestic bankers. The Reserve Bank of India has no control over these.

Differences between organized and unorganized banking

Organized banking system works directly under the control of Reserve Bank of India whereas unorganized banking system is free from RBI control.

Reasons for encouraging banking system in India after independence

1.      Adhere to democratic and socialist ideals.
2.      Connecting everyone to the financial system.
3.      Equality of interest rates.
4.      Eliminating disorganization of unorganized banking.
5.      To prevent economic and social exploitation.
6.      Freeing the financial system from personal control.
7.      Promote financial inclusion.

History of Banking System (History of Banking System)

Modern banks are thought to have originated in 1157 with the establishment of the Bank of Venice in Italy. After that, 1401 AD In Bank of Barcelona, ​​1407 AD Bank of Geneva and 1694 AD Bank of England was established in.

The growth of the banking sector accelerated with the entry of public capital companies in the 18th century.