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Banking Services |
| Banks play a very important role in the society by acting as a financial institution. It is an agent from which money can be borrowed to set up business, for education and a various other reasons. It is also a place where one can safely save his capital as well as other assets and it also maintains accounting records of its clients. This business of the banks is known as banking and it is a very crucial aspect of the modern society. |
A few of the most significant functions of banking have been mentioned below for your perusal:
- The primary function of banking is to collect or pay cheques 'drawn by' or 'paid in' by the customers
- Banking also implies to receiving money from the general public (its account holders) through the modes of current accounts, deposit accounts and savings accounts on demand.
History of banking dates back to the ancient Roman Empire where money lenders would set up stalls to primarily convert the foreign currencies into the legal tender of imperial mint. However, the history of the modern banking system could be dated back to the times of renaissance and even the name 'bank' has been derived from the Italian word 'banco' meaning desk/ bench where the bankers sat to make the transactions.
There are numerous laws of banking that surround the entire endeavor. This makes the process of banking uniform as well convenient to the financial institutions that is the banks as well as the customers or the account holders.
- The financial relation between the bank and its customer can be determined by the balance in the account of the customer.
- The bank owes the customer when the account is in Credit and if the account is overdrawn, the customer owes it back.
- The bank shall only pay from the customers' account with a authorization, as in a cheque signed by the customer himself.
- Under the laws of banking, a bank shall not disclose the account details of the customer to any other person other than the customer himself and shall also not close down the account of the customer without issuing notice to the customer.
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