Accounting and Auditing The provisions of the Act relating to annual accounts and audits of banking companies are given in sections 29-33 and are as follows: Preparation of Annual Accounts On 31st March each and every banking company incorporated in India, in respect of all business transacted by it, and every banking company incorporated outside
What is a Bank Account? A bank account is a financial account maintained by a bank for a customer. A bank account can be a deposit account, a credit card account, a current account, or any other type of account offered by a financial institution, and represents the funds that a customer has entrusted to
What is Loan Management? Lending or advancing loans is one of the two basic functions of commercial banks. Lending is the profit or earning process of the commercial bank. The lending policy of banks is governed by the monetary policy of the Reserve Bank of India. The banks lend money out of deposits received from
What is Deposit Mobilization? Commercial banks play an indispensable role in the development of the country. The main function of a commercial bank is the management of its liabilities and assets. Liability management consists of the activities involved in getting funds from depositors and other creditors and determining the appropriate mix of funds for a
What are Bank Deposits? Bank deposits are savings products that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. The
What is Bank Management? A banking company, like any other company or corporate body, is an artificial person existing only in the eyes of the law. It has a separate legal entity with no physical existence of its own. It acts through the natural human beings that are termed as ‘directors’ and collectively designated as
What are Banking Systems? The banking systems in different countries vary substantially from one another. The banking system of a country depends on the economic, and political conditions of the country and also on the traditions of the people. Various banking systems existed are Branch Banking, Unit Banking, Group Banking, Correspondent Banking, Chain Banking, Deposit
What is Unit Banking System? Under a unit banking system, an individual bank operates through a single office. The size and area of operations of a Unit Bank are much smaller as compared to those of a bank under a branch banking system. According to Shapiro, Solomon, and whit, “An independent unit bank is a
What is Commercial Bank? The term “commercial bank” can be defined as a financial institution that accepts deposits, offers checking account services, make various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking. Commercial banks
What is a Bank? A bank is a financial institution that accepts deposits from the public and leads those who need it thereby making a profit out of it. The lending rate of a bank is higher than the rate it pays to its depositors. A bank, therefore, acts as a reservoir into which the
