What Is Banking And Features Of Banking

Banking is a business of accepting deposits and lending money. It is carried out by financial intermediaries, which performs the functions of safeguarding deposits and providing loans to the public.

In other words, Banking means accepting for the purpose of lending or investment of deposits of money from public repayable on demand and can be withdrawn by cheque, draft order and so on.

Banking Company: Any company, which transacts the business of banking

Banking System is a principal mechanism through which the money supply of the country is created and controlled. The banking system enables us to understand Commercial Banks, Secondary Banks, Cent

What is Bank?

According to Banking Encyclopedia, Bank is a financial institution which receives deposits from the public and lends them for investment purpose i.e., deposits of money and advances of the Main function of banks, but in the era of globalization banks indulges themselves in many activities like Insurance, Mutual Fund Business and Investment in Stock Exchanges. These activities of banking are considered as Para Banking Activities.

Features of Bank

• Money Dealing

• Acceptance of Deposit

• Grant of loan and advances

• Payment and withdrawal of deposits

• Transfer of funds

• Portfolio management

• Foreign Exchange dealing