About the lecture:
Bank and their features, Dr Paritosh Dube, Department of Commerce & Management
Here the discussion is about what is the origin of the word bank, the definition of bank and the various features of bank.
What is the origin of the word bank? Bank has been derived from various sources, One is taken from French word banque which means cheque or deposit, in german it is from taken the word banc which means a heap or amount of money. In Italy it taken from the word banco which means accumulation of money or stock. What does bank mean? These are institutions where we go and deposit our money and from where we earn interest or some of us consider this as an institution which gives us money and takes interest from us. But these features does not completely define banks. The definition of bank in totality is given by banking companies act of India 1949, which defines it as an institution which taken money from the public for the purpose of lending or investment repayable on demand or otherwise withdrawable cheques , drafts or orders of otherwise.
Features of bank:
- Bank mainly deals with money. Money is not any note which is issued in the market rather money is any currency or coin or cheque which is supported by the government of a particular country. The government of every country asked the reserve bank to issue currency against gold
- Bank does not have to be an institution only, it can be an individual or a company as well.
Bank accepts deposits from the public. It asks public to deposit their saving and these deposits are of different nature depending upon their term. They are current deposits, saving deposits and fixed deposits.
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About the Author:
Dr. Paritosh Dube
Assistant Professor – Department of Commerce & Management- Faculty of Commerce & Management, Kalinga Universitry
Degrees: Ph. D in Management (Finance) M. Com, MBA (Finance & Marketing).
Area of specialization: Accounts & Finance