Bank Exams Exam > Bank Exams Notes > SBI PO Prelims & Mains Preparation > Functions of Banks
Functions of Banks | SBI PO Prelims & Mains Preparation - Bank Exams PDF Download
Primary Functions
Accepting Deposits
Most important function of a bank is to mobilize public funds. Bank provides safe custody as well as interest to the depositors.
- Saving deposit: Saving deposit account meant for those people who wants to save for future needs and uncertainties. There is no restriction on number and amount of withdrawals. Bank provides cheque book, ATM cum debit card and Internet banking facility. Depositors need to maintain minimum balance which varies across different banks.
- Fixed deposit or Term deposit: In fixed deposit account, money is deposited for a fixed tenure. Banks issues a deposit certificate which contains name, address, deposit amount, withdrawal date, depositor signatures and other important information.
Depositor can't withdraw money during this period. In case depositor want to withdraw before maturity, banks levy pre-mature withdrawal penalty. - Current account: Current accounts are normally opened by businesses. Banks provide overdraft facility for these accounts by which account holder can withdraw more money than available bank balance. This act as a short term loan to meet urgent needs. Bank charges high rate on interest and charges for overdraft facility because bank need to maintain a reserve for unknown demands for overdraft.
Recurring deposit
In this type of account depositors deposits certain sum of money at regular period of time. Benefit of recurring account is that it provides benefit of compounded rate of interest and enables depositors to collect big sum of money.Granting Loans and advances
- Cash credit : It is a short term loan facility under which banks allows its customers to take loan up to a certain limit, normally bank grants this loan against mortgage of certain property.
- Bank overdraft: Bank provides this facility to current account holders.Account holder can withdraw money anytime up to the provided limit. He need to pay interest only on borrowed amount for the period for which he took loan.
- Loans: Banks providing loans for various kinds of short term as well as long term needs. Borrower pay back the loan in installments.
- Discounting bills: In normal day to day business, sellers sends bills to buyer whenever they sell their products and it is mentioned in bill to make payment in stipulated time. Lets take it 30 days. In such conditions seller may discount the bill from bank for some fees. In such situation bill discounting acts as short term loan. In case the buyer or the drawer defaults, bank send the bill back to seller to drawer so that he may take legal action against drawee or buyer.
Secondary Functions
Agency functions
- Funds transfer
- Cheques collection
- Periodic payments/collection
- Portfolio management
Utility functions
- Issue of draft, letter of credit etc :- Letter of credit acts as an assurance that in case the borrower defaults in making the payment, bank will make the payment up to the amount mentioned in letter of credit
- Locker facility
- Underwriting of shares
- Dealing in foreign exchanges
- Project reports
- Social welfare programs
The document Functions of Banks | SBI PO Prelims & Mains Preparation - Bank Exams is a part of the Bank Exams Course SBI PO Prelims & Mains Preparation.
All you need of Bank Exams at this link: Bank Exams
|
628 videos|824 docs|280 tests
|
FAQs on Functions of Banks - SBI PO Prelims & Mains Preparation - Bank Exams
| 1. What are the primary functions of banks? |  |
Ans. The primary functions of banks include accepting deposits from customers, granting loans and advances, facilitating payment and settlement systems, and providing various financial services such as issuing credit cards and providing investment advice.
| 2. What are the secondary functions of banks? | |
Ans. The secondary functions of banks include providing locker facilities to customers for safekeeping of valuables, offering remittance services for transferring funds, issuing traveler's cheques and demand drafts, providing foreign exchange services, and acting as trustees and executors for customers.
| 3. What are the functions of banks in relation to banking exams? | |
Ans. In the context of banking exams, banks play a crucial role in providing the necessary infrastructure for conducting exams, such as setting up examination centers, ensuring the security and confidentiality of exam materials, and facilitating the smooth conduct of the examination process.
| 4. What are some frequently asked questions (FAQs) related to the functions of banks in banking exams? | |
Ans. Some frequently asked questions related to the functions of banks in banking exams include:
- How can I apply for a banking exam conducted by a bank?
- What is the eligibility criteria for appearing in a banking exam?
- What is the syllabus and exam pattern for banking exams?
- How can I prepare for banking exams effectively?
- What are the career prospects after clearing a banking exam?
| 5. How can banks help individuals prepare for banking exams? | |
Ans. Banks can assist individuals in their preparation for banking exams by providing study materials, conducting mock tests and practice sessions, organizing coaching programs and workshops, and offering guidance and counseling to aspiring candidates. Additionally, banks may also provide financial assistance or scholarships to deserving candidates to support their exam preparation journey.
Related Exams
About this Document
|
4.82/5 Rating |
|
Nov 22, 2024 Last updated |
Document Description: Functions of Banks for Bank Exams 2024 is part of SBI PO Prelims & Mains Preparation preparation.
The notes and questions for Functions of Banks have been prepared according to the Bank Exams exam syllabus. Information about Functions of Banks covers topics
like Primary Functions, Secondary Functions and Functions of Banks Example, for Bank Exams 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Functions of Banks.
Introduction of Functions of Banks in English is available as part of our SBI PO Prelims & Mains Preparation
for Bank Exams & Functions of Banks in Hindi for SBI PO Prelims & Mains Preparation course.
Download more important topics related with notes, lectures and mock test series for Bank Exams
Exam by signing up for free. Bank Exams: Functions of Banks | SBI PO Prelims & Mains Preparation - Bank Exams
Description
Full syllabus notes, lecture & questions for Functions of Banks | SBI PO Prelims & Mains Preparation - Bank Exams - Bank Exams | Plus excerises question with solution to help you revise complete syllabus for SBI PO Prelims & Mains Preparation | Best notes, free PDF download
Information about Functions of Banks
In this doc you can find the meaning of Functions of Banks defined & explained in the simplest way possible. Besides explaining types of
Functions of Banks theory, EduRev gives you an ample number of questions to practice Functions of Banks tests, examples and also practice Bank Exams
tests
|
628 videos|824 docs|280 tests
|
Download as PDF
|
Explore Courses for Bank Exams exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Objective type Questions
,Functions of Banks | SBI PO Prelims & Mains Preparation - Bank Exams
,practice quizzes
,past year papers
,Important questions
,Previous Year Questions with Solutions
,shortcuts and tricks
,study material
,Extra Questions
,video lectures
,Exam
,Free
,Semester Notes
,Viva Questions
,mock tests for examination
,MCQs
,Summary
,Sample Paper
,ppt
,Functions of Banks | SBI PO Prelims & Mains Preparation - Bank Exams
,Functions of Banks | SBI PO Prelims & Mains Preparation - Bank Exams
;
Additional Information about Functions of Banks for Bank Exams Preparation
Functions of Banks Free PDF Download
The Functions of Banks is an invaluable resource that delves deep into the core of the Bank Exams exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Functions of Banks now and kickstart your journey towards success in the Bank Exams exam.
Importance of Functions of Banks
The importance of Functions of Banks cannot be overstated, especially for Bank Exams aspirants.
This document holds the key to success in the Bank Exams exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Functions of Banks Notes
Functions of Banks Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Functions of Banks.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Functions of Banks Notes on EduRev are your ultimate resource for success.
Functions of Banks Bank Exams Questions
The "Functions of Banks Bank Exams Questions" guide is a valuable resource for all aspiring students preparing for the
Bank Exams exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Functions of Banks on the App
Students of Bank Exams can study Functions of Banks alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Functions of Banks,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Functions of Banks is prepared as per the latest Bank Exams syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup