Project Report on Debit and Credit Cards
CHAPTER 1
Introduction
What is a Bank?
Finance is the life blood of trade, commerce and industry. Now -a-days, banking sector acts as the backbone of modern business. The term bank is derived from the French word Banco which means a Bench or Money exchange table. In olden days, European money lenders or money changers used to display (show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchaning. A bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposit and it lends money to those who need it.
Definition of a Bank
Section 5(b) of the Banking Companies Act, 1949 defines banking as “accepting for the purpose of lending or investment of deposits of money received from the public, repayable on demand and withdrawable by cheque, draft, order or otherwise”.
Features of a Bank
1. Dealing in Money
2. Individual / Firm / Company
3. Acceptance of Deposit
4. Giving Advances
5. Payment and Withdrawal
6. Agency and Utility Services
7. Profit and Service Orientation
8. Ever Increasing Functions
9. Connecting Link
10. Banking Business
11. Name Identity
Funtions of Bank
The fuctions of banks are briefly highlighted in following Diagram or Chat.
A. Primary Function of Banks
1. Accepting Deposits:
a. Saving Deposits
b. Fixed Deposits
c. Current Deposits
d. Recurring Deposits
2. Granting of Loans and Advances:
a. Overdraft
b. Cash Credits
c. Loans
d. Discounting of Bill of Exchange
B. Secondary Function of Banks
1. Agency Functions
a. Transfer of Funds
b. Collection of Cheques
c. Periodic Payments
d. Portfolio Management
e. Periodic Collections
f. Other Agency Functions
2. General Utility Functions
a. Issue of Drafts and Letter of Credits
b. Locker Facility
c. Underwriting of Shares
d. Dealing in Foreign Exchange
e. Project
Introduction
What is a Bank?
Finance is the life blood of trade, commerce and industry. Now -a-days, banking sector acts as the backbone of modern business. The term bank is derived from the French word Banco which means a Bench or Money exchange table. In olden days, European money lenders or money changers used to display (show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchaning. A bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposit and it lends money to those who need it.
Definition of a Bank
Section 5(b) of the Banking Companies Act, 1949 defines banking as “accepting for the purpose of lending or investment of deposits of money received from the public, repayable on demand and withdrawable by cheque, draft, order or otherwise”.
Features of a Bank
1. Dealing in Money
2. Individual / Firm / Company
3. Acceptance of Deposit
4. Giving Advances
5. Payment and Withdrawal
6. Agency and Utility Services
7. Profit and Service Orientation
8. Ever Increasing Functions
9. Connecting Link
10. Banking Business
11. Name Identity
Funtions of Bank
The fuctions of banks are briefly highlighted in following Diagram or Chat.
A. Primary Function of Banks
1. Accepting Deposits:
a. Saving Deposits
b. Fixed Deposits
c. Current Deposits
d. Recurring Deposits
2. Granting of Loans and Advances:
a. Overdraft
b. Cash Credits
c. Loans
d. Discounting of Bill of Exchange
B. Secondary Function of Banks
1. Agency Functions
a. Transfer of Funds
b. Collection of Cheques
c. Periodic Payments
d. Portfolio Management
e. Periodic Collections
f. Other Agency Functions
2. General Utility Functions
a. Issue of Drafts and Letter of Credits
b. Locker Facility
c. Underwriting of Shares
d. Dealing in Foreign Exchange
e. Project