Banking Full Forms

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

ICICI – Credit and Investment Corporation of India

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

Advantages

  • Accessibility of budget-friendly loans
  • Rural area development 
  • Propellant of the financial sector
  • Community Wealth Security 
  • Economies of huge scale

Disadvantages

  • 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 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 important part of our daily lives. Since the time it became...
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...

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