Bank Essay: Here GkSection has been published an important essay on Bank in English language. The Bank Essay is an useful for those students who are currently studying in school or colleges. With the help of Bank essay you can write or give fluently speech about Bank in your school/college’s exam. Students which is currently studying in Class 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 or graduate can preparation here for Bank Essay in English with lots of information about the Bank.
Perfect Long and Short Essay on Bank for School and Colleges’s Students
Bank is defined as an institution which has the function of accepting deposits of money from the public, provides the facility for withdraw-able by cheque, and does the work of lending as credit to individuals. The prime functions of the bank are listed as under:
1. Accepts chequeable deposits (money) from the Public:
This is the primary function of the bank as the financial institution.
2. Capacity for lending :
Bank as the banker of public deposits has the capacity to lend money to individuals as credit.
Along with these functions of the bank, it has a varying degree of its deposits from the public. To list out the most essential deposit functions:
1. The deposits from the public is in the form of money, and does not include goods or non-money financial assets of the depositor;
2. Bank accepts deposits from the public at large and it does not come solely from the shareholders or its members;
3. The deposits made by the public are repayable on demand, and can be withdraw-able by cheque. It is also known as deposits on demand deposits.
Yet, the function of lending is just as essential to the bank, which arises from the deposits. These lending are made to others and its does not indulge in financing its own business whatsoever, namely, in the manufacturing or trading of goods.
In India, the RBI (reserve bank of India) acts as the regulatory board and set regulations to be followed by all. It is the banker of the government of India. There are many nationalized banks. However, there is great increase in private banks, which has changed the financial aspect of the economy remarkably. Under one of the Banking Regulation Act of 1949, banks are restricted from financing its own business. The function of lending by the bank falls under two aspects, namely, direct lending to the borrowers and the mode of indirect lending through investment in the open market securities as well.
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The two main objectives of the bank make it as a financial institution. The bank alone is not sufficient to carry out its functions without the support of deposits. Deposits are pivotal to the banks, and it’s the necessary element in the bank.
Banks are largely the “departmental stores” of financial services to the public, as they render a wide range of functions, for the financial mobility of the depositors. The functions of the banks are getting more diverse with the passage of time. Depending on the size of the banks and the type of bank, the functions are carried out.
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