Banking is defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to conduct economic activities such as making profit or simply covering operating expenses. Banks play an important role in the economy for offering a service for people wishing to save. It offers finance to businesses who wish to invest and expand. These loans and business investment are important for enabling economic growth. The function of a bank is to collect deposits from the public and lend those deposits for the development of agriculture, industry, trade and commerce. Bank pays interest at lower rates to the depositors and receives interests on loans and advances from them at higher rates. 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.

Sruthy Santhosh

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