'Araling Panlipunan\r'

' pennyral trust is the bank of a country a nation. Its master(prenominal) function is to issue capital k straightn as ‘ camber Notes. This bank acts as the leader of the banking remains and m wizy market of the country by regularization money and credit. These banks atomic number 18 the bankers to the government, they are bankers banks and the ultimate keeper of a nations unusual exchange reserves. The aim of the Central chamfer is non to earn profit, but to take for price stability and to strive for economic ontogenesis with entirely-round growth of the country There is now hardly any country which does not put up a Central Bank of its own.It acts as a great engine of growth of a State. In India, the RBI was established in 1935 and this Bank has since been procedure as the Central Bank of the country (this is not to be confused with ‘Central Bank of India, which is scarce a mercenary bank). The Central Bank of antithetic countries is cognize by differ ent names bid Reserve Bank in India, Bank of England in U. K. , Federal Reserve System in U. S. A. , and so forth (ii) Commercial Banks: A bank, which undertakes all kinds of ordinary banking business, is called a commercial bank. It is so called because it admits money and credit for commercial and disdain activities.They receive short and medium full term deposits from the prevalent and grant short-run brings, and advances. They supply working capital to industries and enable them to carry on toil and manufacturing activities. They grant loans and advances on the stocks of agricultural commodities, industrial goods, and so forth They discount internal and foreign bills and thereby pay the International trade. They also perform certain(prenominal) position services such(prenominal) as collection of cheques, dividends, kindle on investments, issue of drafts, letter of credit, Travelers Cheques, Investment consultatory Services, and so forth(iii) industrial Banks or Fin ancial Institutions: An Industrial Bank is one which specialises by providing loans and fixed capital to industrial concerns by subscribing to share and debenture issued by public companies. They play an important role in the instauration and growth of industries. The block capital required for the skill of fixed assets, etcetera , is supplied by investment banks. They provide long-term loans and credits for periods varying between 5 and 15 years for industries to acquire fixed assets.They whitethorn serve as catalytic agents in militarization of capital in other forms of assistance such as, underwriting, guarantee, etc. These banks are nowadays grouped as ‘ knowledge Financial Institutions. These banks are really habitual in Germany and Japan. In India, we pick out several Industrial Finance Corporations in addition to the â€Å"Industrial phylogeny Bank of India”. Both, Development Financial Institutions and Commercial banks, nowadays, pay infrastructural ont ogenesis activities, which include construction of transport facilities, create of power-supply stations, etc.(iv) Exchange Banks (Authorized Dealers in unlike Exchange): These types of banks are originally engaged in transactions involving foreign exchange. They circularize in foreign bills of exchange import and exportation of bullion and otherwise break upicipate in the backing of foreign trade. They do a number of incident services such as opening move of earn of credit, issue of Foreign Currency Drafts and Travellers Cheques and supply of development about foreign customers. They provide credit and loans in foreign currency and also need deposits in Foreign Currency.They require huge capital and dexterous staff as it is a risky business. They claim branches in foreign countries at important trade centres. In the past foreign banks operating in India would deal in foreign exchange and were cognise as exchange banks. Nowadays, many Indian banks deal in foreign exch ange with special government agency from Reserve33ank of India and cognise as Authorised Dealers in Foreign Exchange. As per Foreign Exchange Regulation personation banks dealing in Foreign Exchange link activities require the permission of Reserve Bank of India.This is relevant to both Indian and Foreign Banks. (v) Co-operative Banks: They are create on co-operative principles of mutual help and assistance. They grant short-term loans to the agriculturists for purchase of seeds, harvesting and for other cultivation expenses. They accept money on deposit from and make (vi) Land-mortgage Banks (Presently known as Agriculture and uncouth Development Banks): They are agriculture development banks. The Land-mortgage banks supply long-term loans for a period up to 15 years for development of land to improve agricultural yields.They grant loan for permanent improvements in agricultural lands. They create on the table bonds out of real estate like land, buildings, etc. They raise f unds by floating debentures and by borrowing from the government. The Agriculture Finance Corporation was the initial Indian Institution to set up pay for development of Agriculture. The National Bank for Agriculture and Rural Development (NABARD) was constituted by the politics to fire rural development. (vii) Indigenous Banks:The Central Banking Enquiry missionary station defined an native banker as an individual or firm accepting deposits and dealing in indigenous lending of money to the needy. They form unorganised part of the banking structure, i. e. , these are unrecognised operators in receiving deposits and lending money. In India the Marwaris, the Multanis, the Jains, the Sowcars, the Nattukottai chettiars are some of the leading indigenous bankers who shudder high rates of absorb on their lendings. In rural areas, they still provide substantial finance to agriculturists and small traders.(viii) Savings Banks: These are institutions which collect the fortnightly sa vings of the general public. Their main object is to labor thrift and saving habits among the middle and lower income sections of the society. They have certain restrictions on number of withdrawals in a year to discourage spending. In almost all countries, postal authorities also run savings bank accounts and their working is regulated by the government. The premiere savings bank was started in Hamburg in 1765. In India, we have postal savings accounts. These days kick downstairs savings banks as such are very rare.In India, all commercial banks have savings accounts. The token(prenominal) balance which is required to be kept in the accounts differs from banks to banks. The rate of interest payable on the accounts by banks is determined by RBI. Presently it is 4. 5 per cent per annum. Co-operative banks are normally allowed to pay an additional 0. 5 per cent interest per annum. Interest rate on savings accounts with post offices is determined by Government of India. (ix) Supran ational Banks: Special Banks have been created to deal with certain international financial matters.World Bank is otherwise known as International Bank for Reconstruction and Development (IBRD) which gives long-term loans to developing countries for their economic and agricultural development. Asiatic Development Bank (ADB) is another Supranational Bank which provides finance for the economic development of poor Asiatic countries. They generally provide finance at concessional interest rates and for long-term needs. These institutions are the creations of World bodies promoted by various countries or central banks of different countries.The European Central Bank established in June 1998 by countries in the European Union is another lesson of Supranational Bank. (x) International Banks: International Banks are those which are operating in different countries. While, the registered office/ corpus office is situated in one country, they run short through their branches in other cou ntries. They specialize in Banking business pertaining to foreign trade like opening of letters of credit, providing short-term finance in foreign currency, issue of performance guarantee, arranging foreign currency credits, etc.They are the main traders in International Currencies like US ‘dollars, Japanese ‘Yen, the new-born European Currency ‘Euro, etc. They also perform Currency Risk way functions for clients. These banks are also known as multinational Banks since, they operate from many countries. These banks make possible the scarper of money/credit from one country to from the above, it abide be understood that the classification of banks cannot be rigid. We set that banks are providing finance in more than one field that is why, it is rightly said that they are â€Å"departmental stores of Finance”.\r\n'