What is a bank?
-
A
bank
is an institution that deals with
money
and other
financial transactions.
-
It
accepts deposits
from the public and
lends money
to individuals and businesses.
-
It als
o provides
other
services
such as
money transfer, cheque facilities, e-banking,
etc.
-
A bank acts as an
intermediary
between
savers
and
borrowers.
-
It mobilises the
savings
of people who have
surplus money
and makes it available to those who need it for productive purposes.
-
By doing so, it helps the
economy
to grow and develop.
-
There are
different types of banks,
such as
commercial banks, cooperative banks, specialised banks and central banks.
- Each type of bank has its own functions and features.
