Q: Define BANK.
A:Bank is an organisation which accepts deposits from public repayable on demand or otherwise for the purpose of lending and investment.
What is a Banking Company ?
Any company, which transacts the business of banking defined above is termed as Banking company and in INDIA these are regulated by BANKING REGULATION ACT AND RBI ACT.
Q: Define CUSTOMER.
A: A customer is a person who maintains a regular account with the bank without taking into consideration the duration and frequency of operation of his account.
To be a customer for any bank the individual should have an account with the bank. The relationship between banker and customer is of utmost importance.
Q: Define Demand Deposit.
A:Demand deposits are those deposits, which can be withdrawn on demand. Saving bank, current account and overdue deposits fall under this category. Customers having these accounts can withdraw their deposit s from the account at any time they desire.
Q: Define Term Deposit.
A:Deposits, which are not payable on demand, are known as term or time deposits. "Term Deposits" or “Fixed Deposits” are deposits, where the depositor makes a lump sum deposit at one time for a fixed term and receives payment in future after the period for which the deposits have been kept. Rate of interest is contracted at the time of opening the account. Such deposits generally carry comparatively higher rate of interest depending on the time span In case a depositor wants prepayment i.e. payment before the due date, the amount is paid after leaving penalty.
A:Bank is an organisation which accepts deposits from public repayable on demand or otherwise for the purpose of lending and investment.
What is a Banking Company ?
Any company, which transacts the business of banking defined above is termed as Banking company and in INDIA these are regulated by BANKING REGULATION ACT AND RBI ACT.
Q: Define CUSTOMER.
A: A customer is a person who maintains a regular account with the bank without taking into consideration the duration and frequency of operation of his account.
To be a customer for any bank the individual should have an account with the bank. The relationship between banker and customer is of utmost importance.
Q: Define Demand Deposit.
A:Demand deposits are those deposits, which can be withdrawn on demand. Saving bank, current account and overdue deposits fall under this category. Customers having these accounts can withdraw their deposit s from the account at any time they desire.
Q: Define Term Deposit.
A:Deposits, which are not payable on demand, are known as term or time deposits. "Term Deposits" or “Fixed Deposits” are deposits, where the depositor makes a lump sum deposit at one time for a fixed term and receives payment in future after the period for which the deposits have been kept. Rate of interest is contracted at the time of opening the account. Such deposits generally carry comparatively higher rate of interest depending on the time span In case a depositor wants prepayment i.e. payment before the due date, the amount is paid after leaving penalty.
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