TYPES OF BANKS AND ACCOUNTS CHAPTER-2

CLASSIFICATION OF BANKS A) AS PER SECOND SCHEDULE OF RESERVE BANK OF INDIA ACT 1.Scheduled banks 2.Non-scheduled banks(their number has decreased to 2 only at present B)ON THE BASIS OF DOMICILE 1.Foreign banks 2.Domestic banks

C) ON THE BASIS OF OWNERSHIP 1.Public sector banks 2.Private sector banks 3.Cooperative banks D)ON THE BASIS OF FUNCTIONS AND FUNCTIONAL AREA 1)Commercial banks4)exchange banks 2)Industrial banks5)savings banks 3)Agricultural banks6)central banks

STRUCTURE OF BANKING SYSTEM 1.Unit banking 2.Branch banking 3.Chain banking 4.Group banking 5.Correspondant banking

TYPES OF BANK ACCOUNTS Fixed or time deposit account Saving bank deposit account Recurring deposit account Flexible account ATM(automatic teller machines)

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Procedure to open a current account or a savings account 1. application in the prescribed form 2. introduction of the applicant 3. Specimen signatures 4. Photographs 5. To make the initial deposit

OPERATION OF BANK ACCOUNTS Pay-in-slip book Cheque book Pass book ADVANTAGES OF A BANK ACCOUNT 1.Safety of money 2.To cultivate habit of saving 3.Securing loans and overdrafts 4.Collection of cheques etc 5.Facility in making payments 6.Safe custody of valuable articles 7.Providing credit information and letter of credit