Introduction to Banking

             A bank is financial institution, which deals with money and credit. It accepts deposits from the savers of money and grants to loan user of money. This is the main task of the commercial banks. Besides this, banks provide many service like fund transfer, agency service, underwriting service, issue of credit notes service etc. It also provides remittance facility to transfer money from one place to another place. Generally, bank accepts deposit from business institution and individuals, which is mobilized into productive sector mainly business and customer lending.

            At present, there are various types of bank according to their function and objective like central bank, commercial bank, development bank, exchange bank etc.

These banks provide various services to the public. However the word "bank "refers to the commercial bank.

            Many economists have defined in many ways. According to Hulsbury's law of England "A bankers is defined as an individual, partnership or corporation, whose sole or predominating business is banking. That is the receipt of money on current or deposit account, and the payment of cheque paid in by a customer".   

            According to shorter oxford English dictionary "A bank is an establishment for the custody of money received from or behalf of it's  customers, it essential duty is to pay their draft on it's profit arises from it's use of the money left unemployed by them."

            Hence, the bank can be defined as a financial establishment for the deposit loan exchange or issue of money as well as for the transmission of funds.