DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : G.Rajeswari
Designation : Senior Lecturer
Branch : Commercial and Computer Practice
Institute : Government Polytechnic, Srikakulam
Year/Semester : V semester
Subject : Banking – I
Subject code : CCP 504(B)
Topic : Banking, types of banks
Duration : 50mts
Sub topic : Meaning, definition and features
of banks
Teaching Aids : PPT, Animation
CCP 504(B) .2 1
Objectives:-

On completion of this period, you would be

able to:

 Understand the meaning of Bank.

 Understand the definition of Bank.

 Understand the features of Bank.

CCP 504(B) .2 2
In our daily life we come across the
word “Bank” many times.

1) What is the meaning of a Bank ?

2) What are the important functions of a

Bank ?

CCP 504(B) .2 3
Recap
 The Economic Development of any country
depends on the soundness of the financial
system of the country.

 This task is performed by Banks.

 The origin of modern Banks is the Merchants,

Goldsmiths and Money lenders.

CCP 504(B) .2 4
Meaning of a Bank
A bank is an institution which deals with
money and credit.

 It accepts deposits from the public.

 Makes the funds available to those who need

them.

 Helps in the remittance of money from one place

to another.

CCP 504(B) .2 5
Definition of Bank

1. “A Bank collects money from those who have

it to spare or who are saving it out of their
incomes, and it lends this money to those
who require it”. - Crowther

CCP 504(B) .2 6
Definition

2. A Bank is “an establishment which makes to

individuals such advances of money as may be
required and safely made, and to which
individuals entrust money when not required by
them for use.”
- Kinley

CCP 504(B) .2 7
Definition
1. Nobody can be a Banker who does not :

III. Take deposit accounts

V. Take current accounts

VII. Issue and pay cheques

IX. Collect cheques – crossed and uncrossed for its

customers

CCP 504(B) .2 8
Definition

4. Indian Banking regulation Act, 1949 defined

Banking as “the accepting for the purpose of
lending or investment, of deposits of money
from the public, repayable on demand or
otherwise, and withdrawable by cheque, draft
or otherwise”

CCP 504(B) .2 9
Features of Bank

1. It deals with money.

2. It accepts deposits and advances loans.
3. It also deals with credit.
4. It has the ability to create credit.
5. It aims at earning profit.
6. It manages the payment system of the country.

CCP 504(B) .2 10
Summary

1. Banks basically deal with money.

2. Their motive is Profit making.
3. They provide Cheque system as a medium of
exchange.
4. They collect deposits and lend loans to the needy
public.

CCP 504(B) .2 11
 QUIZ

2. Bank is a

 Voluntary Organisation
 Social Organisation
 Educational Institution
 None

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 QUIZ

3. Banks deal with

a) Money and Credit

b) Debit
c) Stamps
d) Papers

CCP 504(B) .2 13
Frequently Asked questions

 Define Banking?
 What is the meaning of Banking?
 What are the features of Banks?

CCP 504(B) .2 14