1. Presented on 30/11/2012 Presented By, Siju
Titto
Visakh
Uwais

2. OBJECTIVES
 To understand the meaning of banks and banking
 To know what are the types of banking
 To know functions and roles of banking and also the
types of accounts

3. CONTENT
1. Banks and Banking
2. History
3. Types of Banking
4. Role of Banking
5. Functions of Banks
6. Types of Accounts

4. BANKS
• A financial institution
• Set up for lending , issuing, exchanging , taking
deposits, safeguarding, or handling money
• 26 Nationalized banks in India
BANKING
• Business activity
• Accepting and lending money
• To earn profit

5. History of banks..
 Banking in India originated in the year 1770
 The State Bank of India started in the year 1955.
 The period between 1906 and 1911, saw the
establishment of banks inspired by the Swadeshi
movement.

6. Cont…
 The Reserve bank of India was established in the year
1935, but was nationalized on 1 January 1949 under the
Reserve bank of India Act 1948.
 The Banking Regulation Act was enacted in 1949 and
empowered the RBI “to regulate, control, and inspect
the banks in India".

7. TYPES OF BANKING
E-Banking (Electronic banking )
- ATM, Credit cards, Debit cards
 Net Banking
- Use of computer and internet
- Customers can access their accounts through
bank web sites
 Mobile banking
- Mobile Phones are used

8. Cont…
Retail banking
Transactions are executed directly with customers
Core banking
Stands for "centralized online real-time
environment“

9. Role of Banking
 Encourages the saving habit among the people.
 Acts as an intermediary
 Facilitates business transactions through receipts and
payments by cheques instead of currency.
 Provides loans and advances to businessmen for short
term and long-term purposes.
 Also facilitates import export transactions.

10. Cont…
 It helps in national development by providing credit to
farmers, small-scale industries and self-employed
people as well as to large business houses which lead
to balanced economic development in the country.
 Helps in raising the standard of living of people in
general by providing loans for purchase of consumer
durable goods, houses, automobiles, etc.

11. FUNCTIONS OF BANK

12. Types of Accounts
Saving Accounts
- Encourage saving habit among the public
- Low interest
- 5% at present
Fixed Accounts
- Deposited for a specific period of time
- High interest rate
- Withdrawals not allowed

13. Cont…
Current Accounts
-It is for businessmen
-Easy withdrawals
-No interest
Recurring Deposit
-Operated by salary person and petty traders
- Withdrawals are permitted only after the expiry of
certain period.
- High interest rate

14. THANK YOU