Banking

Banking

BANKING(MATHS BOARD PROJECT)
Introduction
What is banking??
In simple words, Banking can be 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 earn a profit.    However, with the passage of time, the activities covered by banking business have widened and now various other services are also offered by banks.  The banking services these days include issuance of debit and credit cards, providing safe custody of valuable items, lockers, ATM services and online transfer of funds across the country / world.


1. Types of banks
Private sector banks: -The "private-sector banks" are banks where greater parts of stake or equity are held by the private shareholders and not by government.
Public sector banks: - Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a government. The shares of these banks are listed on stock exchanges. 
2. Other banks:-
Commercial banks: the term used for a normal bank to distinguish it from an investment bank.
Merchant banks were traditionally banks which engaged in trade finance. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies.
Universal banks, more commonly known as financial services companies, engage in several of these activities. 
Central banks are normally government-owned and charged with quasi-regulatory responsibilities, such as supervising commercial banks, or controlling the cash interest rate.

NATIONALISED BANKS DURING INDIRA GANDHI’S TENURE
The first major step was Nationalization of the Imperial Bank of India in 1955 via State Bank of India Act. State Bank of India was made to act as the principal agent of RBI and handle banking transactions of the Union and State Governments. In a major process of nationalization, 7 subsidiaries...

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