BANK

A bank is a financial institution which acts as an intermediary between savers and usersof funds. It is easy to understand a bank from the various services it offers, such as,
1. It accepts deposits from public in the form of Savings, Current or Term Deposits.
2. It allows a customer remit money or funds from one place to another, in the form of Demand Draft or Money transfer.
3. It accepts instructions from the customer and makes, on their behalf, payment for utilities such as electricity bill, school fees etc.
4. It accepts, on behalf of Government, tax payments.
5. It lends money for business, agriculture, purchase of house, purchase of vehicles etc.
6. It transacts in foreign exchange and helps business people and others pay inforeign exchange. Pt buys and sells foreign currency as per customers’ needs
7. It offers safe deposit vault facilities for safe keeping of customers’ valuablesviii. It operates ATM machines, which allow the customer to withdraw funds throughout the day and night, and.
ix. It offers credit/debit and charge card facilities which helps customers makepayments, as also borrow money.It is evident that the list of activities of banks is very large. Bank is able to do all the above activities because it is a financial intermediary. Its primary function is acceptance of money in the form of deposits and lending money to borrowers and, invest funds. Thus, deposit taking, lending and investments are the basic functions of a Bank.