Meaning Of Banking


 
 
Concept Explanation
 

Meaning Of Banking

Bank is a lawful organization, which accepts deposits that can be withdrawn on demand. It also lends money to individuals and business houses that need it

Role of Banking

Banks provide funds for business as well as personal needs of individuals. They play a significant role in the economy or a nation. Let us know about the role of banking-

  • It encourages savings habit among people and thereby makes funds available for productive use.
  • It acts as an intermediary between people having surplus money and those requiring money for various business activities.
  • It facilitates business transactions through receipts and payments by cheques instead of currency.
  • It provides loans and advances to businessmen for short term and long - term purposes.
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