https___testbook.com_learn_functions-of-banks_.xml
https___treemedianews.com__E0_A4_AC_E0_A5_88_E0_A4_81_E0_A4_95-_E0_A4_B5_E0_A4_BF_E0_A4_A4_E0_A5_8D_E0_A4_A4__E0_A4_AC_E0_A5_88_E0_A4_82_E0_A4_95-_E0_A4_96_E0_A5_81_E0_A4_B2_E0_A5_87_E0_A4_AA_E0_A4_9B_E0_A4_BF-_E0_A4_B5_E0_A4_BF_E0_A4_95_E0_A4_BE_E0_A4_B8_E0_A4_95_E0_A5_8B-_E0_A4_97_E0_A4_A4_E0_A4_BF__1.xml
1.1 3.1 3.2 3.3 4.1 4.2 5.1 5.2 6.1 7.1 7.2 8.1 8.2 9.1 9.2 10.1 11.1 12.1 13.1 14.1 15.1 16.1 17.1 18.1 19.1 20.1 20.2 21.1 21.2 21.3 21.4 22.1 23.1 23.2 24.1 25.1 25.2 26.1 26.2 27.1 28.1 28.2 28.3 28.4 29.1 30.1 31.1 32.1 33.1 34.1 35.1 36.1 37.1 37.2 37.3 37.4 38.1 39.1 39.2 39.3 40.1 41.1 41.2 42.1 43.1 43.2 44.1 45.1 45.2 45.3 46.1 47.1 47.2 48.1 48.2 49.1 50.1 50.2 51.1 51.2 52.1 53.1 53.2 53.3 54.1 55.1 56.1 57.1 58.1 59.1
Functions of Banks: Meaning, Objectives, Roles, Types, Structure of Banks in India for Banking Awareness Functions of Banks mainly involve accepting deposits and lending loans and advances to the bank customers. All the banks across the globe generally cater to their customers through accepting their funds in the form of deposits and lending them funds as loans. Apart from that, there are other functions that a bank performs to the extent of their nature of service and organizational structure. Knowing about the various functions of banks in India is very important not only for exam point of view but also for practical purposes. As many government and banking exams cover questions on the types, roles, and structure of banks, candidates are expected to know about each of them as well as how the banks perform different functions. In order to understand the functions of banks in India in detail, we must first learn about the basics of banking. Let’s begin with understanding the meaning, structure, roles, and types of banks in India. What is a Bank? Banks are financial institutions authorized to receive deposits and provide credit. Other functions of banks may include financial services like wealth management, safe deposit boxes, and currency exchanges. There are several types of banks that are designated to perform all of the above mentioned functions. Most common types of banks are retail banks, corporate banks, and investment banks. In most countries, these banks are regulated either by the national government or a central bank. In India, all the banks and financial institutions are regulated by the Reserve Bank of India (RBI). Major Functions of Banks in India The major functions of banks in India cover the following: - Accepting deposits - Lending loans and advances - Transfer of funds - Issue of notes/ drafts - Credit deposits - Foreign exchange services In the following space, let’s understand the above functions in detail. Accepting deposits The banks accept deposits from their customers, who can withdraw their funds at will. Customers can deposit money and leave their funds with the bank in any type of bank account – savings account, current account, or fixed deposit account. A savings bank also pays interest to their customers on the deposits. Such banks are very popular with small savers. A current account is a running account that can be operated multiple times during a working day. Whereas, a fixed deposit account is responsible for holding deposits for a fixed period and a higher rate of interest is paid on such accounts. Lending loans & Advances A bank lends funds to the needy people at a certain rate of interest. Banks provide loan mainly to agriculturists, industrialists, and businessmen who intend to invest in their ventures for their own profit and to contribute to the economic development of the country. Issue of notes/ drafts A bank is also responsible for issuing notes and creating other inexpensive modes of exchange in the form of drafts or cheques. In India, the RBI is responsible for issuing notes and coins. The banks create and enable the transfer of credit instruments such as bank notes, bank drafts, letters of credit, cheques, and so on. These instruments are very helpful in economizing the use of metallic money and making transfer of funds cheap and convenient. Credit Deposits The bank may create deposits by providing loans to its customers. In such cases, the borrower is credited with a withdrawable deposit amount when needed. The customers usually deposit the money borrowed from the bank in the same bank either when the bank insists on doing so or to reap the benefits of the current deposit account. Such deposits are also known as Credit Deposits. Other functions of banks include: - Collecting of cheques drawn on other banks - Accepting and collecting of bills of exchange - Dealing in foreign exchange to assist the settlement of overseas debts - Safe deposit facilities - Stock exchange trustee - Assisting the RBI in keeping the note issue in a safe and good condition Indian Banking Structure The Indian Banking Structure is broadly classified into Scheduled Banks and Non-scheduled banks. The scheduled banks are further divided into cooperative banks and commercial banks. While, under the commercial banks, we have Public Sector Banks, Regional Rural Banks (RRBs), and Foreign Banks. The below mentioned table provides more details about the various types of banks in India. Specialized Banks Apart from the above types of banks, there are certain banks that were introduced for catering to the specific needs of the customers. These banks are called specialized banks. They are as follows: SIDBI (Small Industries Development Bank of India) The SIBDI provides loans for a small scale industry or businesses. Customers in need of financing their small businesses with modern technology and equipment, turn to the SIBDI for financial assistance. EXIM Bank (Export-Import Bank) The EXIM Bank is responsible for financing exporting and/ or importing goods by foreign countries. It is regulated under the Export-Import Bank of India Act of 1981 as a provider of export credit, reflecting the global Export Credit Agencies. NABARD (National Bank for Agriculture and Rural Development) The NABARD provides all kinds of financial assistance for rural, village, agricultural development, handicraft, etc. Hence, it is considered as the apex regulatory body for overall regulation of RRBs and cooperative banks in India. The NABARD is under the jurisdiction of the Ministry of Finance. Small Finance Banks These are another important type of bank that performs functions to aid micro industries, marginal farmers, and small artisans. Small finance banks provide loans and financial assistance to the needy individuals of the unorganized sector of the society. These banks are regulated by the RBI. Some of the small finance banks currently operational in the country are AU Small Finance Bank, Suryoday Small Finance Bank, Capital Small Finance Bank, Northeast Small Finance Bank, and Jana Small Finance Bank. Payments Banks Payments Banks are a newly introduced form of banking conceptualized by the RBI. Such banks call for a deposit amount of up to INR 1 lakh and do not enable customers to apply for credit cards or loans. Payments banks cater to the services of online banking, debit card, mobile banking, etc. Leading payments banks in India are Airtel Payments Bank, NSDL Payments Bank, Jio Payments Bank, Fino Payments Bank, and so on. You might also be interested in: List of Insurance Companies study notes! That’s all on Functions of Banks study notes. We hope the above study material is useful for candidates preparing for banking and finance exams. For more such study resources, get our Testbook App and drive your exam preparations like never before! Functions of Banks FAQs Banks are financial institutions authorized to receive deposits and provide credit. The main types of banks are scheduled banks and non-scheduled banks. The banks are mainly responsible for receiving deposits and providing credit facilities to their customers. The main types of bank transactions are balance check, withdrawals, and deposits. These include issuing letters of credit, demand draft, transferring money from one account to another, providing locker facilities, etc.
1.1 2.1 3.1 4.1 5.1 6.1 7.1 8.1
आरपी पौडेल/ धमाधम बैंकहरुको शाखा खुल्न थालेपछि ग्रामिण भेगहरु पनि विकसित हुन थालेका छन् । नेपाल राष्ट्र बैंकले ग्रामीण क्षेत्रमा लगानी बढाउन बैंक तथा वित्तीय संस्थाहरुलाई बेलाबेलामा निर्देशन दिने गरेको भएपनि बैंकहरुले ग्रामीण भेगमा गरेको लगानी सुरक्षित नहुने भन्दै सो निर्देशन मानिरहेका थिएनन् । तर, पछिल्लो समय भने ग्रामीण भेगमा लगानी लगानी विस्तार भइरहेको छ । लघुवित्त वित्तीय संस्थाको योगदान यसरी ग्रामीण भेगमा लगानी विस्तार हुनुमा लघुवित्त बैंकहरुको सबैभन्दा ठूलो योगदान रहेको छ । विशेषतः ग्रामीण तथा दुर्गम भेगका वासिन्दा तथा विपन्न वर्गसम्म बैंकिङ पहुँच विस्तार गर्नकै लागि लघुवित्त संस्थाहरु खोलिएका हुन्छन् । लघुवित्त संस्थाले नेपाल राष्ट्र बैंकबाट प्राप्त सहुलियत कर्जा र बैंक तथा वित्तीय संस्थाबाट कर्जा लिई बिनाधितो ग्रामीण क्षेत्रमा लगानी गर्दछन् । अन्य बैंकहरुले पनि लघुवित्त बैंकमार्फत ग्रामीण भेगमा लगानी गर्ने गरेका छन् । कतिपय वाणिज्य बैंकहरुले आफ्नै लघुवित्त बैंकको स्थापना गरी ग्रामीण भेगमा पुँजी परिचालन गर्ने गरेका छन् । यसले गर्दा ग्रामीण भेगका मानिसहरु लघुवित्त बैंकबाट ऋण लिएर कुनै न कुनै व्यावसायिक उद्यममा लाग्न प्रेरित भएका छन् । लघुवित्त संस्थाहरूले सार्वजनिक निक्षेप संकलन गर्न पाउँदैनन् । बैंक तथा वित्तीय संस्थाबाट लिएको कर्जा तथा सदस्यहरूबाट जम्मा भएको निक्षेप तथा आफ्नो पुँजीबाट यिनीहरूले कर्जा प्रवाह गर्छन् । नेपाल राष्ट्र बैंकले दिने सापट सहुलियतको हुन्छ । लघुवित्त संस्थाले दुर्गममा शाखा खोेलेमा ३० लाख रुपैयाँसम्म बिनाव्याज प्राप्त गर्ने प्रावधान रहेको छ । त्यस्तै, बैंक तथा वित्तीय संस्थाबाट लिएको सापटको व्याज तिर्नुपर्ने हुन्छ । लघुवित्त संस्थाले वाणिज्य बैंकबाट ४ देखि ६ प्रतिशत र विकास बैंकबाट ४ देखि ७ प्रतिशतसम्मको व्याजदरमा यस्तो कर्जा लिने गरेका छन् । यस्ता संस्थाले बैंक तथा वित्तीय संस्थालाई तिर्ने ब्याज र सर्वसाधारणबाट लिने ब्याजको अन्तरबाट नै नाफा कमाउँछन् । हाल लघुवित्तले कर्जामा १८ देखि २४ प्रतिशतसम्म ब्याज लिँदै आएका छन् । राष्ट्र बैंकको निर्देशन नेपाल राष्ट्र बैंकले उत्पादनमूलक क्षेत्र तथा विपन्न वर्गमा अनिवार्य रुपमा नै लगानी गर्नुपर्ने निर्देशन दिएपछि लघुवित्त मात्र नभएर ठूला विकास बैंकहरु पनि गाउँगाउँमा शाखा विस्तार गर्नतर्फ लागीपरेका छन् । शाखा पुर्याउन असम्भव भएका ठाउँमा शाखारहित बैंकिङ सेवा दिएर भएपछि बैंकहरुले ग्रामीण भेगका जनतालाई बैंकिङ कारोबारसँग जोडिरहेका छन् । मुलुक संघीय संरचनामा गएपछि झन् सबै स्थानीय तहमा वाणिज्य बैंककै शाखा पुर्याउने गृहकार्य भइरहेको छ । बैंक शाखा नपुगेका स्थानीय तहमा जान बैंकहरुले सहमति गरी सोअनुसार कदम पनि चालिसकेका छन् । यसबाहेक, कृषि, जलविद्युत्, पर्यटन जस्ता उत्पादनमूलक क्षेत्रमा २५ प्रतिशत लगानी गर्न राष्ट्र बैंकले निर्देशन दिएको छ । यो व्यवस्थाले पनि ग्रामीण भेगमा बैंकिङ लगानीको मात्रा बढाउन मद्दत पुर्याइरहेको छ । त्यस्तै, सहरी भेगमा मात्र बैंक संचालनमा आउने प्रवृत्तिलाई कम गर्न राष्ट्र बैंकले ग्रमीण भेगमा जाने लघुवित्तलाई प्रोत्साहन गर्ने र सहरका लागि लाइसेन्स नदिने व्यवस्था गरेको छ । ग्रामीण भेगमा शाखा खोल्ने बैंकहरुलाई पनि प्रोत्साहन गर्ने नीति राष्ट्र बैंकले लिएपछि ग्रामीण भेगहरुले बैंकिङ लगानीबाट समृद्ध बन्ने अवसर पाउन थालेका छन् । बैंकबाट ऋण लिएर उद्यममा लाग्नेको संख्या बढ्यो बैंक तथा वित्तीय संस्थाहरुबाट ऋण लिएर उद्यममा लाग्नेको संख्या पनि बढ्न थालेको छ । ग्रामीण भेगमा पशुपालन, व्यावसायिक कृषि तथा घरेलु उद्योगका लागि लघुवित्त बैंकबाट ऋण लिने गरेको पाइन्छ । विशेषतः महिलाहरुले समूहगत रुपमा लघुवित्तबाट ऋण लिने गरेका छन् । लघुवित्त बैंकबाट ऋण लिएर सफल उद्यमी बनेका थुप्रै उदाहरणहरु ग्रामीण भेगमा देख्न पाइन्छ । लघुउद्यम गर्नका लागि ठूला बैंकहरुले पनि कर्जा प्रवाह गर्ने गरेका छन् ।