What is banking? What is a bank?

Hi Deepak, Banking can be defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit. However, with the passage of time, the activities covered by banking business have widened and now various other services are also offered by banks. The banking services these days include issuance of debit and credit cards, providing safe custody of valuable items, lockers, ATM services and online transfer of funds across the country / world. Bank is a financial institution that undertakes the banking activity ie.it accepts deposits and then lends the same to earn certain profit. An establishment authorized by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial transactions, and provide other financial services to its customers. I hope it helps. Please, feel free to revert. All the best.

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