Banking is denoted as Accepting of deposits of money from public for the purpose of Lending or Investment or repayable on demand or otherwise and withdrawable by cheque, draft, or otherwise
A banking company must perform both of the essential functions
1. Accepting of deposits
2. Lending or investing the deposits and such a company is called a Bank.
Alternately, an institution (person or body, corporate or otherwise or other) cannot be a bank if it does not -
1. Deposit accounts.
2. Current accounts.
3.Issue and pay cheques.
4.Collect cheques crossed and uncrossed for his customers.
5.Draft system
If the purpose of accepting of deposits is not to lend or invest, then the business will not be called as a banking business.
Do you want to know more about banking details that how core banking system works and the others about banking stuff then click here
Note:All content is copyrighted to http://sm-information.blogspot.com and may not be reproduced on other websites.
A banking company must perform both of the essential functions
1. Accepting of deposits
2. Lending or investing the deposits and such a company is called a Bank.
Alternately, an institution (person or body, corporate or otherwise or other) cannot be a bank if it does not -
1. Deposit accounts.
2. Current accounts.
3.Issue and pay cheques.
4.Collect cheques crossed and uncrossed for his customers.
5.Draft system
If the purpose of accepting of deposits is not to lend or invest, then the business will not be called as a banking business.
Do you want to know more about banking details that how core banking system works and the others about banking stuff then click here
Note:All content is copyrighted to http://sm-information.blogspot.com and may not be reproduced on other websites.
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Core Banking System
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