The Banking Industry In India

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1.1 Introduction to Banking It is owned by other persons to accept and to protect the money and then make a profit out of the money lending is an activity. 1.1.1Banking industry The banking industry is a service industry. It provides various services to its customers. Traditionally, the services were restricted to deposits and loans. They had surplus money, which take deposits from people and needed money to invest, which began by borrowing this money to borrowers. They are charged interest from borrowers and depositors have given. Deposit and lending interest rate difference between the major source of revenue for the banks were formed. Banking, lending or borrowing to invest, to provide services for those who have a service industry. To…show more content…
The transit of banking lending money too 'menu' deposits and to advance a section dedicated to his work and laid down rules relating to interest rates, which is supposed to be collected before the great Hindu jurist . In the present scenario, the service sector plays an important role in the country. Service sector plays an important role in the economic development of the country's banking center, which is one. Liberalization and economic contexts, instead of generating revenue from borrowing and lending banks allowed to explore new business opportunities. Banking industry, the banking business in India infection, any industry, banking industry defines as the 1949 Indian Banking Regulation Act, which was regulated…show more content…
Give credit The second important function of commercial banks to advance loans to their customers. Banks charge interest from borrowers and it is the main source of their income. Banks but also to deposit the money in the accounts of borrowers on the loan advance loan advance not only on the basis of public deposits. In other words, they are out of debt and stay out loans create deposits. It is called as the creation of credit by commercial banks. Most secured loans for productive purposes are modern banks. In other words, the debt at the time of the move, they demand proper security or collateral. Generally, the amount of the loan is equal to the value of the security or collateral. In the event of non-refund of the loan by selling debt security with a view to recovering money is mainly used. Limes, banks give loans on the basis of personal security. Therefore, such a loan is called as unsecured loans. The following types of loans and advances to banks generally provide: 1. Cash Credit In this type of credit plan, banks, bonds and other approved securities on the list for our customers, advance loan. Under this scheme the banks money can be withdrawn several times a year, which enter into an agreement with its customers. The banks and their customers open accounts established under the loan funds. With this type of loan, the credit is

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