Banking is a sector that manages financial transactions like cash, credit, etc. Banks provide a secure system to keep additional credits and cash also offers deposit certificates, savings accounts etc. Banks utilize these deposits in lending making such as loans. These loans include house mortgages, car loans and loans related to business.
Banks exist from the time when the business of trade started by human civilization. A bank by its definition is a financial system which is authorized to accept and lend deposits. Commercial banks also offer various other facilities such as net banking, credit cards, investment securities, buying and selling of gold coins and often insurance.
Types Of Banks
Various banks and financial institutions have developed over the last three centuries. Usually, each category focuses on one particular form of business. Therefore we can differentiate the various banks as per their operations. There are mainly seven types of banks, namely
- Commercial banks
- Exchange banks
- Co-operative or agricultural banks
- Industrial banks
- Central banks
- Saving bangs
- Unity of banks
Some examples of banking related full forms
Abbreviations are most frequently used in the banking sector. Examples include
ATM – Automated Teller Machine
HDFC – Housing Development Finance Corporation
IFSC – Indian Financial System Code
INR – Indian Rupee
NEFT – National Electronic Funds Transfer
RTGC – Real-Time Gross Settlement
RBL – Ratnakar Bank Limited
Advantages And Disadvantages Of The Bank
- Accessibility of budget-friendly loans
- Rural area development
- Propellant of the financial sector
- Community Wealth Security
- Economies of huge scale
- Risk of community deposit
- The threat of fraud and robbery
- Possibility for banks to go unprofitable
Benefits Of Knowing Banking Full Forms
Many of the banking terms, as well as the banking institutions, are stated in the abbreviated form. We need to know the full forms to get a better understanding of banking technologies.
The full form of HSBC is the Hong Kong and Shanghai Banking Corporation. HSBC is a British multinational banking and financial services company...
The full form of LIC is Life Insurance Corporation of India. LIC is a government-owned insurance and investment company arising from the Life...
The full form of RBL is Ratnakar Bank Limited. RBL was formed in 1943 and had many branches nationwide in various cities. Its head office is in...
The full form of NSDL is National Securities Depository Limited. NSDL is a depository of Indian securities that stores digitally securities such...
The full form of MICR is Magnetic Ink Character Recognition. MICR code (Magnetic Ink Character Recognition Code) is a pattern recognition system...
The full form of ECS is Electronic Clearing Service. ECS is an electronic mode scheme that transfers funds from one bank account to another,...
The full form of IDBI is the Industrial Development Bank of India. IDBI was founded in 1964 as a wholly-owned subsidiary of RBI to provide...
The full form of INR is Indian Rupee. INR is the Republic of India's official currency. It is approved and controlled by RBI (Reserve Bank of...
The full form of PFMS is the Public Financial Management System. PFMS was previously called CPSMS (Central Plan Schemes Monitoring System). It is...
The full form of IFSC is the Indian Financial System Code. IFSC code is an alphanumeric code of 11 characters, which helps to smooth the progress...
The full form of ATM is Automated teller Machine, it is an electro-mechanical machine which consists of automated banking platforms that allow...
The full form of NEFT is the National Electronic Fund Transfer. Banking has become an essential part of our daily lives. Since it became online,...
The full form of KYC is Know Your Customer. KYC is the method of a company that verifies the customer's identity and assesses possible risks to...
The full form of RTGS is Real Time Gross Settlement, it is a money transfer process that is performed in real-time and without delays. RTGS...