College Name :

Shri . G.P.M Degree

College .
 Student Name :
Pratima Chandrakant
Teli .
Subject : INNOVATIONS IN
BANKING AND INSURANCE .
Class : SYBBI .
Roll No : 9 Vileparle .
 Topic Name :
Functions of
Bank .
 INDEX
 DICTIONARY MEANING OF BANKING.
 DEFINATION.
 FUNCTIONS OF BANK.
 PRIMARY FUNCTIONS.
1) ACCEPTING DEPOSITS.
2) GRANTING LOANS.
 SECONDARY FUNCTONS.
1) AGENCY FUNCTIONS.
2) GENERAL UTILITY SERVICE.
 THANK YOU.
 FUNCTIONS OF BANK
:
Banking is an institution for Lending, Borrowing,
Exchanging, Issuing & Safeguarding Money.

Section 5 (c) Banking Regulation Act 1949. Defines Banking as, “ According for
the purpose of lending or investment of deposit & Money from the public
repayable on demand or otherwise, & withdrawable by Cheque , Draft, or order.

1947 – We got (Independent) Nationalized.

1st January 1949. RBI got Nationalized Regulation Act 1949.
[ Banking Regural Act, 1949 ]
 Functions of Bank

(A) Primary Functions . (B) Secondary Functions

(a) Accepting Deposits. (b) Granting Loans.

 Savings Account.  Loans.

 Current Account.  Overdraft.
 Fixed Account.  Bills of exchanges.
 Recurring Deposits.  Cash credit.
 (B) Secondary Functions.
(c) Agency functions.
 Transfer of funds.
 Payments Collections.
 Cheque Collections.
 Purchase of sale Securities.
 Other Agency Functions.
 Act as Correspondence.
 Rent , Insurance premiums.
 Payment , Rent , Insurance of
Premiums.
 Income Tax Returns.
 Act as Trustee.
 Act as Executor. Etc.
(d) General Utility Service.
 Safety Locker.
 Circular Note.
 Circular Letter Credit.
 Social Welfare Programme.
 Letter Credit.
 Underwriting of Shares.
 ATM Facilities.
 Trade Information.
 Gift Card.
 Credit Card.
 Other Utility of Service.
 (A) Primary Functions.
(a) Accepting Deposit : It Include the
following.
 SAVINGS ACCOUNT :- (a) The Rate of Interest is low about 4 to 5% . (b) This
Account Can be open by Single Name or Joint Name. c) The Withdrawer in
saving Account in Subject to Certain restriction. d) ATM Facilities and
Cheque Facilities in savings Accounts.
 CURRENT ACCOUNT :- (a) Current Account is Operated by Business Men.
( b) Withdrawers are freely allowed. (C) There is No rate of Interest given to
current account holders. (d) overdraft Facilities is given by current account
holders is only.
 FIXED ACCOUNT :- (a) There who has large surplus can go for the fixed
deposit. (b) withdrawers are allowed only after the date of Maturity.
(C) Rate of interest is maximum on this deposit such as 10 to 12%.
 RECURRING DEPOSIT :- (a) In Recurring deposit a certain some of money is
periodically deposited in to be Bank. (b) This account is mostly approch by
Salareted person. (C) There is Rate of Interest allowed by 8 to 10%
 (B) Secondary Functions :-
The Secondary functions of the banks Consist of agency
functions and general utility functions.
(D) General utility services :-
The General utility services include the following.

 ATM FACILITIES :- (A) The bank Today have ATM Facilities.

(B) Under this systems, the customers can Withdraw their Money easily
and Quickly and 24 hours a day. (C) This is also known as ‘Any Time
Money’.
 CREDIT CARD :- (A) Banks have introduced credit card systems. (B)
The establishments like Hotels, Shops, Airline Companies, Railways etc.
(C) Which sell the goods or services on credit forward a monthly or
fortnightly statements to the bank. (D) example :- Visa card, BOB card.
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