BANKING

PRESENTED BY:
AREEB KAZI (85)
AYESHA GHARTE (68)
NIHAL KAZI (64)
UMAR SHAIKH (90)
NOOR AKHAI (31)
 BANKING

Definition
 A bank is a financial institution that accepts deposits from the public and
creates a demand deposit while simultaneously making loans. Lending
activities can be directly performed by the bank or indirectly through
capital markets.
 INTRODUCTION

Banking is an industry that handles cash, credit, and other financial

transactions. Banks provide a Safe place to Store extra cash and credit.
They offer savings accounts, Certificates of Deposit, and checking
accounts. Banks use these deposits to make loans. These loans include
home mortgages, business loans, and car loans.
A Bank is a financial institution licensed to receive deposits and make
loans.
 TYPES OF BANK
 Central Bank
 A National bank that provides financial and banking services for its country’s government and commercial
banking system, as well as implementing the government’s monetary policy and issuing currency.
 Our country's central bank is the Reserve Bank of India. Each country has a central bank that oversees
all of the country's other financial institutions.

Cooperative Banks
 Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative
banking institutions take deposits and lend money in most parts of the world.
 These banks are governed by a law enacted by the state government. They provide short-term loans to
agriculture and related industries.

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 Commercial Banks
 A commercial bank is a financial institution that provides services like loans, certificates of deposits, savings bank accounts bank
overdrafts, etc. to its customers. These institutions make money by lending loans to individuals and earning interest on loans.
 The Banking Companies Act of 1956 established the company.
 They are owned by government state or any private company and have a unified structure

Regional Rural Banks (RRB)

 A regional bank is a depository institution, i.e. a bank, savings and loan, or credit union, which is larger than a
community bank, which operates below the state level, but smaller than a national bank, which operates either
nationally or internationally.
• RRBs were founded in 1975 and are governed by the 1976 Regional Rural Bank Act.
• Between 1987 and 2005, 196 RRBs were established.
 Local Area Banks (LAB)
 Local area banks are referred to as small private banks with low-cost structures that provide financial services
limited by the area of operation. These banks usually function in rural and semi-urban areas.
 In India, it was first introduced in 1996.
 The private sector organizes these.
 Local Area Banks are governed by the 1956 Companies Act.

Specialized Banks
 These are banks that focus primarily on financing or working with specialized economic and social endeavours.
These banks don’t handle the financing of the general public rather they pertain to a small group. They have a
specific customer base and work on sector-specific development.
 Certain banks exist just to serve a certain purpose. Specialized banks are the name for several types of financial
institutions. These are some of them, SIDBI and NABARD
 Payments Banks
 Payments banks are new model of banks, conceptualised by the Reserve Bank of India, which cannot issue credit.
These banks can accept a restricted deposit, which is currently limited to ₹200,000 per customer and may be
increased further. These banks cannot issue loans and credit cards.
 The following is a list of our country’s few payment banks:

• Airtel Payments Bank

• Paytm Payments Bank

Government Banks
 A Government bank is a bank, a financial institution, in which a state, municipality, or public actors are the owners. It is
an enterprise under government control.
• The public sector banks or PSBs are more commonly known as Government Banks. The government banks are not
under the direct control of the government but the Government of India is the majority stakeholder in them i.e the GOI
has more than 51% of the shares. There are 12 government banks in India or Public sector banks. Some of them are
• State Bank of India, Bank of India, Union Bank of India etc.
TYPES OF INVESTMENT BANK
• Investment banks "underwrite" (guarantee the sale of) stock and bond issues, provide investment management, and
advise corporations on capital market activities such as M&A, trade for their own accounts, make markets, provide
securities services to institutional clients.
• Merchant banks were traditionally banks which engaged in trade finance. The modern definition, however, refers to
banks which provide capital to firms in the form of shares rather than loans.

Combination banks
• Universal banks, more commonly known as financial services companies, engage in several of these activities

Other types of banks

• Central banks are normally government-owned and charged with quasi-regulatory responsibilities, such as
supervising commercial banks, or controlling the cash interest rate
• Islamic banks adhere to the concepts of Islamic law. This form of banking revolves around several well-established
principles based on Islamic laws
 TYPES OF ACCOUNTS
Bank statements are accounting records produced by banks under the various accounting standards of the world. Under
GAAP there are two kinds of accounts: debit and credit.

Brokered deposits
• One source of deposits for banks is brokers who deposit large sums of money on behalf of investors through trust
corporations. This money will generally go to the banks which offer the most favourable terms, often better than those
offered local depositors. It is possible for a bank to engage in business with no local deposits at all, all funds being
brokered deposits.

Custodial accounts
• Custodial accounts are accounts in which assets are held for a third party. For example, businesses that accept custody
of funds for clients prior to their conversion, return, or transfer may have a custodial account at a bank for these purposes.
TYPES OF BANK DEPOSIT
Current deposit account
 A current deposit account is, usually, opened by businessmen. The account holder can deposit and withdraw
money at any time as the deposit is repayable on demand. It is also known as a demand deposit. No interest is paid
on current accounts, rather charges are taken by the bank for services rendered by it.

Saving deposit account

 It is a deposit account held with a bank to manage your savings, expenses, and investments. A standard transaction
in a bank looks as follows- A deposits money in the bank as extra cash/loan/salary
 Fixed deposit account
 In a Fixed Deposit, you put a lump sum in your bank for a fixed tenure at an agreed rate of interest. At the end of
the tenure, you receive the amount you have invested plus compound interest. FDs are also called term deposits.

Recurring deposit account

 With recurring deposits, the customers have the flexibility to invest a sum of their choice every month and save as
per their convenience. This is the primary difference between FD and RD. Many banks offer recurring deposits
with a tenure that ranges from 6 months to 10 years.
THANK YOU