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  • BANKS Economics Project RUSHABH 9B4

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    Rushabh Bhosale
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    The document discusses various functions and services provided by banks. It describes the primary functions of banks as accepting deposits, granting loans and advances, and discounting bills. It also lists various types of bank accounts such as checking, savings, money market, and fixed deposit accounts. The document contrasts commercial banks with Islamic banks, noting that Islamic banks comply with Sharia law and avoid interest. It discusses some advantages and disadvantages of using plastic money/cards compared to cash transactions. Finally, it lists several common documents used in day-to-day banking transactions, such as deposit slips, debit cards, loan agreements, letters of credit, checks, and account opening forms.

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    BANKS economics project RUSHABH 9B4

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    The document discusses various functions and services provided by banks. It describes the primary functions of banks as accepting deposits, granting loans and advances, and discounting bills. It also lists various types of bank accounts such as checking, savings, money market, and fixed deposit accounts. The document contrasts commercial banks with Islamic banks, noting that Islamic banks comply with Sharia law and avoid interest. It discusses some advantages and disadvantages of using plastic money/cards compared to cash transactions. Finally, it lists several common documents used in day-to-day banking transactions, such as deposit slips, debit cards, loan agreements, letters of credit, checks, and account opening forms.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    3 views7 pages

    BANKS Economics Project RUSHABH 9B4

    Uploaded by

    Rushabh Bhosale
    The document discusses various functions and services provided by banks. It describes the primary functions of banks as accepting deposits, granting loans and advances, and discounting bills. It also lists various types of bank accounts such as checking, savings, money market, and fixed deposit accounts. The document contrasts commercial banks with Islamic banks, noting that Islamic banks comply with Sharia law and avoid interest. It discusses some advantages and disadvantages of using plastic money/cards compared to cash transactions. Finally, it lists several common documents used in day-to-day banking transactions, such as deposit slips, debit cards, loan agreements, letters of credit, checks, and account opening forms.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    BANKS

    NAME:- RUSHABH BHOSALE


    CLASS:- 9B4
    FUNCTIONS OF BANK
    • Functions of Banks:- Primary functions include accepting
    deposits, granting loans, advances, cash, credit, overdraft and
    discounting of bills.
    • Secondary functions include issuing letter of credit, undertaking
    safe custody of valuables, providing consumer finance,
    educational loans, etc.
    • 5 functions of banks:-
    • Accepting Deposits
    • Advancing Loans
    • Discounting Bills of Exchange or Hundies
    • Transfer of Money
    • Miscellaneous Functions
    ACCOUNTS OFFERED
    BY BANKS
    • There are many types of accounts offered by banks. Some
    are:-
    • Checking accounts
    • Savings accounts
    • Money market accounts (MMAs)
    • DEMAT Accounts
    • NRI accounts
    • Salary accounts
    • Recurring deposit accounts
    • Fixed deposit accounts
    • brokerage accounts
    • IRA accounts
    • money market accounts
    COMMERCIAL BANKS
    AND ISLAMIC BANKS
    • commercial bank refers to a financial institution that accepts deposits, offers
    checking account services, makes various loans, and offers basic financial
    products like certificates of deposit (CDs) and savings accounts to
    individuals and small businesses.
    • Islamic banking, Islamic finance, or Sharia-compliant finance is banking or
    financing activity that complies with Sharia and its practical application
    through the development of Islamic economics. Some of the modes of
    Islamic banking/finance include Mudarabah, Wadiah, Musharaka,
    Murabahah, and Ijara.
    • Two fundamental principles of Islamic banking are the sharing of profit and
    loss, and the prohibition of the collection and payment of interest by lenders
    and investors. Some conventional banks have windows or sections that
    provide designated Islamic banking services to their customers.
    • The three main forms of Islamic bank financing are mudarabah (trust
    finance) and musharakah (partnership or joint venture financing), both are
    versions of PLS, in addi tion to murabaha (markup contract or differed
    payment sale).
    ADVANTAGES AND
    DISADVANTAGES OF
    PLASTIC MONEY
    • One needs to remember that plastic money is not a cash replacement and can
    be risky in some scenarios. Some of the disadvantages of plastic money are:-
    smaller retail shops and businesses usually prefer cash payments and may not
    accept payment via cards.
    • Advantages of Plastic Money:-
    • Eliminates the need for carrying huge cash: This eliminates the need for
    carrying huge load of cash which is risky and inconvenient too.
    • Risk of Loss or Theft minimized: In case of cash there is a high risk of losing
    cash and a chance of cash getting stolen.
    • Disadvantages of plastic money:-
    • Smaller retail shops and businesses usually prefer cash payments and may not
    accept payment via cards.
    • You may not be able to use your plastic money for daily household payments
    like the maid, milkman, newspaper man and so on.
    DOCUMENTS USED IN BANKS
    FOR DAY TO DAY
    TRANSACTIONS
    • Documents that are most commonly used in banking:-
    • Deposit Slip
    • Debit Card
    • Credit Report
    • Bank Statement
    • Loan agreement form
    • Letter of Credit (LC)
    • Bank Pre-Advice
    • Check
    • Bank Guarantee (BG)
    • Bank Note
    • Account Opening Form
    • Withdrawal Slip
    • Fixed Deposit Receipt
    • Demand Draft
    • Demand Draft Request Form
    • Account Closing Form
    • Reference Form
    • Account Upgrade Form

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