Economics XII Content
Types of Bank
Types of Bank:
- Central bank:
Central bank is the monetary authority or nation. It is the controller, regulator, monitor and supervisor of all kinds of financial institutions. CB issues notes. It is the bank of the bank, bank of the government, adviser of the government agent of the government.
- Commercial Bank:
Commercial bank is established to provide short term loan to traders so it is called commercial bank. But at present commercial bank has been providing loan to several sectors like agriculture, industry, trade, tourism, etc. It has been providing not only short term loan rather providing medium and long term loan.
- Agricultural Bank:
Agricultural bank is established for the development and modernization of agriculture sectors. It provides short term loan to farmers to purchase fertilizers, seeds as well as to pay wages. It also provides long term loan to farmers to purchase land and heavy agricultural equipment.
- Industrial Bank:
Industrial bank provides industrial consultancy and loan for the establishment of industries. It also purchases, sales and underwrites the share and debenture of industries. Not only this as per the requirement it also invests in industries.
- Exchange Bank:
Exchange bank deals with foreign currency and its objective is to help in international trade. It provides loan for foreign trade and helps in the settlement of debt between two countries. It provides loan to the importers by discounting their bills and remit the money of the importers to their parties.
- Saving Bank:
Saving bank is established to collect the scattered saving of low income people and to mobilize their small savings. In this bank people open their account and there is issue of postal cash certifications. On the basis of postal cash certifications depositors can withdrew a definite amount of money once a week.
- Cooperative Bank:
The bank which is organized by the people for their own collective benefit is called cooperative bank. Basically, such banks are established in rural area for promotion of agriculture sectors. But now days there are such banks is every sector.