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:
- These institutions accept deposits from people and give interest on those deposits.
- These institutions provide loans to the people and are responsible for taking interest on the growth of those loans.
- 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.
- Organized banking structure
- 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
- Adhere to democratic and socialist ideals.
- Connecting everyone to the financial system.
- Equality of interest rates.
- Eliminating disorganization of unorganized banking.
- To prevent economic and social exploitation.
- Freeing the financial system from personal control.
- 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.
