Updated By: LatestGKGS Desk
Banking Sector: Bank Role in Finance Sector, Importance in Society Building
The bank is a lawful organization, which accept deposits that can be withdrawn on demand.
It also lends money to individuals and business houses that need it.
Role of Banking
1-It encourages savings habit amongst people and thereby makes funds available for productive use.
2-It acts as an intermediary between people having surplus money and those requiring money for various business activities.
3-It facilitates the business transaction through receipts and payments by cheque instead of currency.
4-It provides loans and advances to a businessman for short term and long term purposes.
5-It also facilitates import-export transactions.
6-it helps in national development by providing credit to Farmers, small-scale industries and self-employed people as well as to large business houses which leads to balanced economic development in the country.
7-It helps in raising the standard of living of people in general by providing loans for purchases of consumer durable goods, houses, automobiles, etc.
8- There are various types of Banks which operate in our country to meet the financial requirements of different categories people engaged in agriculture, business, profession, etc.
Basics types are
- Central bank
- Commercial bank
- Development bank
- Co-operative bank
- Specialized bank
