What is Bank and banking

1. BANKING
What is Bank?
A bank is a financial institution licensed
to receive deposits and make loans.
What is Banking?
“Banking” means the accepting, for the
purpose of lending or investment, of
deposits of money from the public,
repayable on demand or otherwise, and
withdrawal by cheque, draft, order or
otherwise;
(c) “banking company” means any
company which transacts the business of
banking

2. The banking regulation 1949 act of India is mainly
established to restrict trading business to eradicate
non-banking sector various risks
Types of Deposits
On the basis of purpose they serve, bank deposit
accounts may be classified as follows:
1. Savings Bank Account
2. Current Deposit Account
3. Fixed Deposit Account
4. Recurring Deposit Account

3. Savings Bank Account
As the name suggests this type of account is suitable for
people who have a definite income and are looking to save
money. For example, the people who get salaries or the
people who work as laborers. This type of account can be
opened with a minimum initial deposit that varies from bank
to bank. Money can be deposited at any time in this account.
Withdrawals can be made either by signing a withdrawal form
or by issuing a cheque or by using an ATM card.
Current Deposit Account
Since there are restrictions on the number of withdrawals
from a savings bank account, that type of account is not
suitable for daily business transactions. They need to have an
account from which withdrawal can be made any number of
times.

4. Banks open a current account for them. On minimumdeposit, the bank does
not pay any interest on the balances. These accounts also have what we call
the overdraft facility. For the convenience of the accountholders banks also
allow withdrawal of amounts in excess of the balance of the deposit. This
facility is known as an overdraft facility. It is allowed to some specific
customers and up to a certain limit subject to previous agreement with the
bank concerned.
Fixed Deposit Account
Some bank customers may like to put away money for a longer time. Such
deposits offer a higher interest rate.
This period of deposit may range from 15 days to three years or more during
which no withdrawal is allowed. However, on request, the depositor can
encash the amount before its maturity. Banks also grant a loan on the
security of the fixed deposit receipt.

5. Recurring Deposit Account
While opening the account a person
has to agree to deposit a fixed amount
once in a month for a certain period.
The total deposit along with the
interest therein is payable on maturity.
However, the depositor can also be
allowed to close the account before its
maturity and get back the money
along with the interest till that period.

6. Debit Card: A debit card lets you
spend money from your checking
account without writing a check.
When you pay with a debit card,
the money comes out of your
checking account immediately.
There is no bill to pay later.

7. Credit Card
What credit card means?
A credit card is a type of credit facility,
provided by banks that allow
customers to borrow funds within a
pre-approved credit limit. It enables
customers to make purchase
transactions on goods and services.

8. PMJDY
The Pradhan Mantri Jan DhanYojana
(PMJDY) sets out to provide a basic
Bank account to every family who till
now had no account. The bank
account comes with a RuPay debit card
with a built-in accidental insurance
cover of Rs. 1 lakh.

9. • What is traditional banking model?
• Traditional banking refers to banks with a
physical presence with a domestic banking
license. These are the commonly known banks
SBI,Indian Bank,etc
• New Banking Models
• New Banking Systems are Modern
Banking Systems also known as E-
banking systems is a Windows access, full point-
and-click, on-premise provider offering Core Data
Processing Solutions.

10. DIGITAL PAYMENT SYSTEMS
Digital payment is a method of
payment which is made through digital
modes. In digital payments, payer and
payee both utilize digital modes to
send and get cash ..
Banking Cards, UPI,Mobile Wallets.
Banks Pre-paid Cards,Point of Sale.
Internet Banking.

11. What is Internet Banking?
Internet banking, also known as online
banking, e-banking or virtual banking,
is an electronic payment system that
enables customers of a bank or other
financial institution to conduct a range
of financial transactions through the
financial institution's website.
National Electronic Fund Transfer
(NEFT)
Real Time Gross Settlement (RTGS)
Electronic Clearing System (ECS)
Immediate Payment Service (IMPS)

13. • What Is Mobile Banking?
• Mobile banking is the act of
making financial transactions
on a mobile device (cell
phone, tablet, etc.). This
activity can be as simple as a
bank sending fraud or usage
activity to a client's cell phone
or as complex as a client
paying bills or sending money
abroad.

14. What is meant by
mobile wallet?
A mobile wallet is a
digital way to store
credit, debit, ID, and
gift cards so that
purchases can be
made using a mobile
smart device rather
than a physical card.
.

15. Aadhaar Enabled Payment
System (AEPS) is a
payment service that
allows a bank customer to
use Aadhaar as his/her
identity to access his/her
Aadhaar enabled bank
account and perform basic
banking transactions like
balance enquiry, cash
withdrawal, remittances
through a Business
Correspondent.

16. UPI
•
Unified Payments
Interface (UPI) is a
system that powers
multiple bank accounts
into a single mobile
application (of any
participating bank),
merging several banking
features, seamless fund
routing & merchant
payments into one hood