Introduction to Banking Sector

CHAPTER 1 AN OVERVIEW OF THE BANKING SECTOR SECTION I: BANKING SYSTEM IN INDIA 1.1 Introduction [1] [2] A margin is a financial foundation that declare oneselfs banking and another(prenominal) financial services to their customers. A bank is chiefly understood as an institution which forgets fundamental banking services much(prenominal) as accepting deposits and providing loans. There are also nonbanking institutions that provide certain banking services without accumulateing the legal definition of a bank. Banks are a subset of the financial services industry. A banking brass also referred as a carcass provided by the bank which offers cash management services for customers, reporting the transactions of their accounts and portfolios, by means of out the day. The banking governance in India, should not only be hassle free but it should be able to meet the new challenges posed by the technology and any other external and internal factors. For the past three decades, Indias banking system has several outstanding achievements to its credit. The Banks are the main participants of the financial system in India. The Banking sector offers several facilities and opportunities to their customers. All the banks safeguards the money and valuables and provide loans, credit, and payment services, such as checking accounts, money orders, and cashiers cheques.

The banks also offer investment and insurance products. As a variety of models for cooperation and integration among finance industries have emerged, some of the handed-down distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks last out to maintain and perform their primary roleâ€"accepting deposits and add funds from these deposits. 20 1.2 Need of the Banks Before the establishment of banks, the financial activities were handled by money lenders and individuals. At that time the interest rates were really high. Again there were no security of public nest egg and no uniformity regarding loans.... If you want to get a abundant essay, order it on our website: Orderessay

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