PART1
Now-a-days, the banking sector
acts as the backbone of modern
business.
Development of any country
depends mainly upon the
banking system.
A bank is a financial institution which deals
with deposits.
It receives money from those who want to
save in the form of deposits and it lends it
to those who need it.
The Bank is a financial institution
which deals with people's money.
A bank accepts money in the form of
deposits repayable on demand.
A bank lends out money in the
form of loans to those who need
it for different purposes.
A bank provides easy payment
and withdrawal facility to its
customers in the form of
cheques.
A bank
is a
profit seeking
institution which
is
service oriented.
A bank acts as a intermediary
between borrowers and
lenders.
It collects money from those
who have a money- surplus
and gives it to those
who are in need
of money.
PART 2
There are many kinds of banks.
The most important
are:
Saving banks are established to create saving
habit among salaried people and low income
groups.
The deposits collected from customers are
invested in various business projects.
Commercial banks have the objective to help
businessmen.
They collect money from general public and
give short-term loans to businessmen.
The main objective of these banks is to provide
long-term loans
for
expansion
and
modernisation
of
industries.
These also known as
Agricultural Banks
because
they are formed to
finance the agricultural sector.
They also help in land development.
Every country of the world has a central
bank.
In U.S.A, Federal Reserve
and
in U.K, Bank of England.
These central banks are the bankers of the
other banks.
They provide specialised functions i.e.
issue of paper currency, bankers of
government, supervising
and
controlling foreign exchange.
A central bank is a non-profit making
institution.
It does not deal with the public but it deals
with other banks.
The principal responsibility of a Central Bank
is the thorough control of the national
currency.
Co-operative banks give credit facilities to
small farmers, salaried employees,
small-scale industries, etc.
These banks are concerned
with
financing foreign trade.
Their functions are:
 Remitting money from one country
to another country.
 Buying and Selling Gold and Silver.
 Helping Import and Export Trade.
Consumers banks are usually found only in
advanced countries like U.S.A. and
Germany.
The main objective of this bank is to give loans
to consumers for the purchase of the
durables like Motor car, Television set,
washing machine, furniture, etc.
The consumers have to repay the loans
in easy
installments.
PART 3
E-BANKING
DEFINITION
E-banking is an electronic banking sytem.
It is also called
"Virtual Banking"
or
"Online Banking".
It involves information technology based
banking.
Under this I.T system, the banking services are
delivered by way of a Computer-Controlled
System.
This system does not involve
direct interface with the
customers.
The customers do not have to
visit the bank's premises.
The services covered
under E-Banking include
 Automated
Teller Machines
 Credit Cards,
 Debit Cards,
 Electronic Funds Transfer (EFT) System,
 Mobile Banking,
 Internet Banking,
 Telephone Banking, etc.
The main advantages of E-banking are:
 A lower operating cost.
 Customers’ conveniency.
 Very low incidence of errors.
 Acquisition of funds at any time.
 The credit cards and debit cards enables the
Customers to obtain discounts from retail
outlets.
 The customer can easily transfer the funds
from one place to another place
electronically.

TRADE:The business of buying and selling
commodities; commerce.

INDUSTRY:Commercial production and sale of
goods.

CURRENCY:The official currency, coins, and
negotiable paper notes issued by a government.

A COIN:A small piece of metal, usually flat and
circular, authorized by a government for use as
money.