Different Kinds of Banks

Do you need to know what would be various Kinds / Types of Banks i.e., Different Number of Banks  available in Banking Industry in India? Just proceed further to know about it...

1. Saving Banks

Saving banks was founded to be a secure place for salaried people and low income groups to save money for a rainy day. Saving banks were established to encourage saving habit among the people to earn more money. At present, Post offices & Commercial banks act as the saving banks.

2. Commercial Banks

A commercial bank is a financial institution organized as a joint stock company that operates for earning profit. Commercial banks are established with an objective to help businesses to develop economy. These banks collect money from general public as deposits and give loans to different sectors of economy that are in need of money.

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Characteristics / Features of a Bank

From the Definition of Banking mentioned in earlier post, the Characteristics / Features of a Bank may be listed as follows:

1. Dealing in Money

Bank is a business activity which deals with other people's money i.e. getting money from depositors and lending the same to borrowers.

2. Banking Business

A bank is a financial institution which does banking activities of selling financial services like home loans, business loans, lockers, fixed deposit etc., In order to enable people to confirm that it is a bank and is dealing in money, for easy identification, a bank should add the word "bank" as its last name.

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History of Bank

EVOLUTION OF BANKING IN INDIA

The first public banking institution was The Bank of Venice, founded in 1157. The Bank of Barcelona and the bank of Genoa were established in 1401 and 1407 respectively. These are the recognized forerunners of modern commercial banks. Exchange banking was developed after the installation of the Bank of Amsterdam in 1609 and Bank of Hamburg in 1690.

The credit for laying the foundation of modern banking in England goes to the Lombards of Italy who had migrated to other European countries and England. The bankers of Lombardy developed the money lending business in England. The Bank of England was established in 1694. The development of joint stock commercial banking started functioning in 1833. The modern banking system actually developed only in the nineteenth century.

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Bank : Origin & Definition

Origin of the term ‘Bank’

The term ‘Bank’ seems to have originated and/or derived from different sources like the Germanic word ‘banck’, the French word ‘banque’ and the Italian word ‘banco’. The Germanic word ‘banck’ which means a joint stock fund or heap. The Italian word ‘banco’ refers to a bench at which the money changers used to change one kind of money into another and transact their banking business. Thus, in olden days, banking was associated with the business of money changing/lending.

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What is Bank and Banking? : Introduction

In this series of Banking Basics, you will be able to grasp and know all of the following fundamentals of Banking such as Bank and Banking: Introduction, Origin, Definition, History, Features of Bank, Types of Bank, Role of Bank in economic development, How to open Bank Account, Advantages of Opening Bank Account, Cheque, Demand Draft, Types of Deposits: Fixed Deposit, Recurring Deposit etc.,

Meaning of Bank & Banking

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How Does the Indian Stock Market Work?

For a new investor, the stock market can make them feel a lot like legalized gambling market but reality is different as it is driven by supply and demand chain where buying and selling of stocks happen. The supply is determined by the availability of number of stocks for sale and the demand indicates the reverse of it i.e., number of shares that investors want to buy from the seller. It's important here to note that if anyone bought / purchased a share, then it implies that someone was ready to sell that share  on the other end and vice versa. The demand for stock can change due to the mindset of the investors driven by following factors:  Economic fundamentals, Income / Wealth / Taste of consumers, Fear of defense failure, or Company earnings etc.,.

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Indian Stock Exchanges: History & Introduction to Beginners

Stock exchanges

Stock exchange means anybody of individuals, whether incorporated or not constituted for the purpose of regulating or controlling the business of buying selling or dealing in securities. The Stock exchanges deal with Securities which include:

i)                  Shares, scrips, stock, bonds, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate.

ii)                 Government Securities and

iii)               Rights or interest in securities

The Securities Contracts (Regulations) Act, 1956 defines stock exchange “as an association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling the business of buying, selling and dealing in securities”.

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PRINCIPLES OF INSURANCE

In continuation to Basics of Insurance Planning regarding what is Insurance and history of insurance, let’s now know the principles applicable to Insurance.

A contract of insurance is a mercantile contract. All the principles which are applicable to mercantile contracts are applicable to contracts of insurance. In addition to this, there are special principles applicable to contracts of insurance.

Special Principles of Insurance are as follows,

1. Insurable Interest

“Ownership should be there to evaluate financial (insurable) interest”

Insurable Interest is must for validating the contract of insurance. Insurable interest must be a financial / pecuniary interest. A person is said to have insurable interest in a property when he enjoys benefit from its existence and suffers by its destruction or loss.

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Why do we need Insurance Planning ?

CAN YOU BE SURE AS TO WHAT MAY HAPPEN TO “U” IN THE NEXT FEW MINUTES???...

DO YOU WANT TO BE FINANCIALLY SECURE IN THE EVENT OF ANY UNFORESEEN CALAMITY???...

As you know like this Life is full of uncertainties & unpredictable events, so insurance is needed to provide peace 0f mind for you;

The following Insurance benefits will provide you some idea on why do you need Insurance Planning in present situation. Need for Insurance Planning can be segregated as & known by

1) Common Insurance Benefits; 2) Life Insurance Benefits and 3) General Insurance Benefits

Common Insurance Benefits

     #      Provides the much required UNAVOIDABLE RISK COVER for us;

     #      Providing replacement income for your dependents on any unforeseen events

     #      You can’t find any parallel substitute in the financial world for the risk cover that is provided by insurance

     #      Money back plans provide risk cover & liquidity as it returns a portion of the sum assured at regular intervals to us.

    #      Unit linked plans combines market linked high risk returns along with risk cover

    #      To protect ourselves and family from financial risk

Life Insurance Benefits

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