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Essay on Bank

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❶This should help appreciate the role which banks play in the economic life of the country. Banks provide loans for the growth and development of the agricultural and industrial sectors.

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Long and Short Essay on Bank in English

While earlier there were limited number of banks with a few branches in big cities and towns in India, a number of new banks have opened in the last few decades with branches in every nook and corner of the country.

Here are essays of varied lengths on Bank to help you with the topic whenever you required. You can select any bank essay of your choice given below:. The banking system that involves accepting deposits and lending money initiated centuries back in various parts of the world. The system improvised over the time and the banks these days offer various other facilities in addition to the basic depositing and lending of money.

People are encouraged to keep their money in the banks because it is a safe and secure way to store the money. The money stored in the bank in the form of fixed deposits and recurring deposits also fetches a good amount of interest. In addition to money, one can also keep jewellery and important papers in the bank lockers. Providing loans, which is another primary function of the banks, is also beneficial for individuals and businesses in many ways. Salaried people can build their assets such as property, car, etc easily with the help of loans from the bank.

Businessmen can expand their businesses with this facility. A number of other services are also provided to the businessmen to ease their financial transactions and aid in the growth of their business. Online Banking has further enhanced the process of banking. All the customers require doing is opting for internet banking service.

Banking system has been in place since centuries. The system has been prevalent in India as well as other parts of the world. Only the services provided and the functions carried out have enhanced over the time. Banking service began back in the 14 th century in some parts of Renaissance Italy.

It was initiated on the lines of the concept of lending and borrowing that took place among people since the ancient era. In the ancient times, the merchants gave grain loans to the traders and farmers.

This was called the barter system. Over the time the system evolved to accepting deposits and lending money. The Fuggers, the Medicis, the Berenbergs, the Rothschilds are among some of the banking dynasties that are known to play a central role in the history of banking.

They dominated this sector for centuries. Modern banking services such as issuance of banknotes and reserve banking started in the 17 th century. In India, the banking system dates back to the Vedic civilization.

Loans deeds in that period were known by the name rnalekhya or rnapatra. Big businessmen and landlords gave money to the small traders and farmers on interest in the earlier times. This culture is still prevalent in some villages in the country. The lands or other valuable assets of those who were unable to pay the amount were confiscated just as the banks do these days. The first bank established in India was the Bank of Hindustan.

It was opened in the year in Calcutta. There are numerous types of banks in every country to cater to the needs of different customers. A bank is an institution that accepts money deposits from the public and provides funds on credit to individuals as well as firms.

These are the primary functions of a bank but not the only functions. They provide various other services to its customers such as locker facility, transfer of funds, issuance of drafts and portfolio management to name a few. Here is why these institutions are of importance:. Money kept at home is not safe. It is prone to burglary. You do not have to worry about its security. Banks offer various schemes from time to time to encourage saving habits in people.

The money put in the bank is not only saved but also grows. You have the option of withdrawing it any time you want. Banks promote trade within the country by providing loans and advances to the traders. It also eases the process of trading between different countries. They provide easy money transaction options to smoothen the process. It is easy to send and receive funds from anywhere with the advancement in the banking system.

Agricultural sector is an important part of the economy. There are special banks that provide loans to the farmers at low interest to promote agricultural activities.

Banks thus aid in promoting the agricultural sector. Banks accept deposits from individuals and businesses and provide loads to the industries. They thus aid in the development of various industries in this way. The loan can be repaid in easy instalments. Banks provide loans for the growth and development of the agricultural and industrial sectors. As these sectors expand, a number of employment opportunities are created for the public.

Banks are an important part of any country. Banks play an important role in maintaining financial stability in the country. They offer numerous services to help you manage your finances better. These institutions thus form a vital part of any society. The functions of banks have broadly been classified into two categories.

These are the primary functions and the secondary functions. Here is a look at these in detail:. Primary functions are the main functions of the banks.

These include accepting deposits and providing loans. Here is a brief look at these functions:. These deposits encourage public to save money. The money can easily be withdrawn and deposited in the saving account without much restriction. The interest rate here is however quite low. The word lending is used here broadly to include both direct lending to borrowers and indirect lending through investment in open-market securities.

The above discussion implies that neither of the functions alone is sufficient to earn an institution the status of a bank in the modem sense of the term. Thus, acceptance, of chequable deposits from the public is only a necessary, but not a -sufficient, function of a bank. It must also lend to others.

For this reason, Post Office savings banks are not banks in the accepted sense of a bank, even though some of them accept chequable deposits. The reason they are not banks in the ordinary sense of the term and are called savings banks is that they do not perform the other essential function of a bank—that of lending to others.

The Post Office savings banks are run as departmental agencies of the Central Government, and all the funds deposited with them are in fact lent to the Government, their owner. Similarly, lending alone does not make a financial institution a bank. In fact, leaving out Post Office savings banks, all other financial institutions do the work of lending to others. But only those of them are banks that also accept chequable deposits them. All others are non-bank financial institutions.

Banks are said to be department stores of financial services as they render a wide variety of such services to their customers.

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A bank is an institution that accepts deposits of money from the public withdraw-able by cheque and used for lending. (iii) The deposits are repayable on demand and withdraw-able by cheque, i.e., the deposits are demand deposits. The second essential function relates to the use of deposits. They are.

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