Classification of banks on the basis of functions. System and classification of banks 2022-12-08
Classification of banks on the basis of functions Rating:
Gulliver's Travels, written by Jonathan Swift in 1726, is a satirical novel that uses the fantastical story of a man's travels to different lands to comment on the society and politics of Swift's time. Through the character of Lemuel Gulliver, Swift pokes fun at the behaviors and customs of the people he encounters and presents a satirical view of human nature.
One of the main targets of Swift's satire in Gulliver's Travels is the political climate of Europe in the early 18th century. The Lilliputians, for example, are a small and petty society that is constantly at war with their neighbors, the Blefuscudians, over trivial matters such as which end of an egg to crack. This is a clear commentary on the constant state of conflict and territorial disputes that plagued Europe at the time. Similarly, the giant inhabitants of Brobdingnag are depicted as being far more rational and civilized than the Europeans, suggesting that Swift saw the societies of his time as being overly focused on power and conquest rather than on the well-being of their citizens.
Another aspect of society that Swift satirizes in Gulliver's Travels is the inherent pride and vanity of human beings. The Laputans, for example, are a society of intellectuals who are so consumed by their own theories and ideas that they are completely out of touch with reality. Their obsession with abstract thought and their disregard for practical matters is meant to be a commentary on the intellectual elite of Swift's time, who he saw as being overly concerned with their own status and reputation rather than with the needs of society as a whole.
In addition to these broad themes, Swift also uses Gulliver's Travels to mock specific aspects of 18th century society, such as the emphasis on etiquette and social status. The Houyhnhnms, a race of intelligent horses, are portrayed as being much more civilized and rational than the humans they encounter, and they view the latter's obsession with status and appearance as childish and foolish. This is a clear commentary on the shallow and superficial nature of society at the time.
Overall, Gulliver's Travels is a satirical work that uses the story of a man's travels to different lands as a means of commenting on the flaws and shortcomings of 18th century European society. Through the character of Gulliver, Swift pokes fun at the petty politics and superficial concerns of the people he encounters, presenting a scathing critique of human nature and the society in which he lived.
Functions of Banks:Notes on Meaning, Structure, & Types of Banks!
Scheduled Banks are the banks that are listed in the second schedule of the RBI Act, 1934 Section 2 e. Minimum paid-up capital of Rs. However, recently, the commercial banks have also extended their areas of operation to medium-term and long-term finance. Working of the banking system In India In order to interpret the basic working structure of the banking system in India, it is important to understand the working model of the Reserve bank of India. Some of the small finance banks currently operational in the country are AU Small Finance Bank, Suryoday Small Finance Bank, Capital Small Finance Bank, Northeast Small Finance Bank, and Jana Small Finance Bank.
Foreign exchange refers to trading of funds money from one currency to another. Reserve Bank of India regulates all different types of Banks in India. Most of the exchange banks in India are foreign banks; Grindlays Bank, Chartered Bank, Hong-Kong Bank, and Bank of America are examples of these banks in India. This Bank also controls and regulates the flow of credit. Specialised banks: These banks provide financial help to special industries, foreign trade, etc. Public sector banks: The banks owned and controlled by the Government are called Public sector bank. Such banks are formed by the special law of the government and through the special ordinance of the constitution.
ADVERTISEMENTS: c They help selling or even underwrite the debentures and shares of industrial firms, d They can also provide information regarding the general economic position of the economy. These banks have to follow the principles and guidelines laid down by the Reserve bank of India. A current account is a running account that can be operated multiple times during a working day. The major objectives of this process in this context are to provide an expanded network to the banking sector and reduce the monopoly of the private sector banks. All cooperative banks in India are owned by their customers or members who are farmers, small traders and others.
Basics of Banking: Meaning, Functions, Types of Banks & Accounts
Small Finance Banks Section-22 of the Banking Regulation Act, 1949 explicitly provides for the concept of these banks and states that the RBI is the governing body which can provide license to the companies in order to provide services as financing banks subject to some conditions and restrictions. These banks are regulated by the RBI. The exchange rate plays a vital role in determining the foreign exchange. The NABARD is under the jurisdiction of the Ministry of Finance. Specialized Bank These banks are formed with the sole purpose of catering to a particular industry or sector. As per RBI Act 1934: the Reserve Bank of India is the central bank of India.
The banks create and enable the transfer of credit instruments such as bank notes, bank drafts, letters of credit, cheques, and so on. Name the banks that are owned and controlled by the government of India? A prior notice to bank is necessary for withdrawal of huge amount More than Afs 15000 National Saving bank in England and Post office saving bank in Pakistan are examples of saving banks. Payment Bank Year of Establishment Headquarters Current status Cholamandalam Distribution Services 2017 surrendered the license Sun Pharmaceuticals 2017 surrendered the license Tech Mahindra 2017 surrendered the license Aditya Birla Payments Bank 2018 defunct payments banks in 2019 Vodafone m-pesa Limited 2017 defunct payments banks in 2019 Airtel payments Banks 2017 New Delhi, Delhi Operational India Posts payments banks 2018 New Delhi, Delhi Operational Fino payments banks 2017 Mumbai, Maharashtra Operational Jio payments banks 2018 Mumbai, Maharashtra Operational Paytm payments banks 2017 Noida, Uttar Pradesh Operational NSDL Payments Banks 2018 Mumbai, Maharashtra Operational Payment banks are scheduled banks like commercial banks. In the year 2013 RBI formed a committee for bringing the unserved and underserved sections of the society into the mainstream of financial inclusion. Labour Bank Slide 8 Classification of Banks on the basis of Function 1.
Useful Notes on the Classification of Bank on the Basis of their Functions
Agricultural Banks: Agricultural credit needs are different from those of industry and trade. These are the banks which do banking business to earn profit. Type of Banks on the Basis of Ownership 2. Answer: Reserve Bank of India Q. A bank is known as a financial institution responsible for accepting deposits from the public and creates a demand deposit while simultaneously providing loans to its borrowers. Short period loans are given to the farmers for the purchase of seeds, fertilizers and other inputs.
Central Bank: Central Bank is the bank of banks. The main aim of these banks is to provide a platform to the general public for exchange of funds and secure their deposits. The funds can be transferred through various modes like NEFT, draft pay orders, IMPS, RTGS, etc. Such long-term needs cannot be met by the commercial banks, which generally deal with short-term lending. Agricultural finance is generally provided by co-operative institutions.
For instance, the government share of the State Bank of India SBI is 58. All the banks across the globe generally cater to their customers through accepting their funds in the form of deposits and lending them funds as loans. The ownership of the government is generally more than 50%. The bank is called by the government and private joint ownership bank. Non-Scheduled Banks— These are the banks which are not listed in the second schedule of the RBI Act, 1934.