Bank - A Service Provider

As we all know that bank is an apex and important institution of the society. 

Do you think if banks did not exist where do we safely keep our money?

Where would we get financial facility like loans, credit cards by which we can fulfill our dreams as well as expand our business.

How can we get or collect our collection towards services provided by us to our clients and customers or vice versa.

So in this blog you will know about some important services provided by the banks.

Firstly for availing different services of banks we have to open an account with the particular bank and these accounts are Saving Deposit Account, Current Deposit Account, Recurring Deposit Account,  Loan account and Multiple Option Deposit Account etc.

Debit card :- it is also known as ATM card. It is the facility offered to an account holder to make payment up to the amount of credit balance in their account.Generally the points of sale terminals are located which are electronically tied to the bank computer when the customer presents the debit card, the point of sale terminal automatically transfers money from the customer's bank account to the store account after typing required information( password) by the customer.

Overdraft:- Under this arrangement a customer having current account it is allowed to withdraw more than the balance in his account he can withdraw over draw  upto a specific limit. Interest is charged on amount withdrawn.

Credit card :- We are borrowing money to be repaid later to the bank. It is like a bank account without having balance in it. It enables the card holder to have an overdraft facility upto a fixed limit depending upon the creditworthiness of the party.it is a plastic card with the signature identity of the owner.It also includes the name of issuing bank and validity period of the card.

National Electronic fund transfer(NEFT) :- Under this fund is directly transferred from one account to another.Direct  transfer helps both the parties from the inconvenience of drawing cheques,depositing cheques etc. 

Real time gross settlement(RTGS) :- RTGS are funds transfer system where transfer of money or securities take place from one bank  to another on a" real time" and on a "gross basis".

Settlement in real time means payment transaction is not subjected to any waiting period as compared to NEFT.The transactions are settled as soon as they are processed.

Cash credit:-Under this arrangement the borrower is allowed to withdraw up to certain limit again security.

Stay tuned for the next blog... 

Thanks 

By: Ms. Sameena