Banking is a field that deals with financial transactions such as currency, credit, etc. Banks offer a safe place to store extra credit and money, certificates of deposits, savings accounts, and other services. Deposits are used by banks when they give loans. These loans include home mortgages, business loans, and auto loans.
Banks have been around since the dawn of human civilization when trade began. A bank is a financial institution to accept and lend money. Online banking, debit and credit cards, financial assets, the selling and buying of gold bars, and healthcare are all services provided by commercial banks. Many terms in banking sectors are in abbreviated for. Here a few banking-related full form lists are discussed below.
What are the Different Types of Banks?
Over the last three centuries, various banks and financial institutions have developed. Typically, each group focuses on one particular type of business. As a result, we can distinguish between the different banks based on their activities. Seven types of banks are,
- Exchange banks
- Industrial banks
- Agricultural banks or co-operative
- Commercial banks
- Saving bangs
- Unity of banks
- Central banks
Advantages of Banks
Few benefits of banks are
- Accessing Low-Cost Loans
Before modern banks, people borrowed money from local money lenders, landowners, merchants, and wealthy individuals. Modern banks began providing less expensive loans to the needy, effectively eliminating the costly lending system.
- Security of Public Assets
Before the modern banking system, people had to keep their money as hard currency. They kept the cash underground, lockers, and so on. The modern banking system has made it unnecessary to carry cash on hand.
- Propellant of Economic growth
Banks utilize a method called credit creation to create money. Credit creation allows banks to lend more money than they have in deposits. Banks help the economy rise significantly by lending money to farms, industries, small enterprises, and service providers.
- Improvement in Rural Communities
Banks assist rural development in a variety of ways. Firstly, the government is putting pressure on banks to lend to specific industries such as agriculture and rural roads. Second, with banks constructing offices in remote regions, the rural population now has access to modern banking services like check-in accounts, ATMs, and locker services, among other things. In addition, when a new banking institution opens in a village, it requires amenities like 24-hour power generation, internet connectivity, and new staff.
Abbreviated Terms in Banking Sector
In our daily lives, we use a lot of abbreviated terminologies, and many people aren’t aware of the full forms of these expressions. The banking field includes many full forms such as KYC full forms, INR full forms, etc.
|Abbreviated terms||Full forms|
|HDFC||Housing Development Finance Corporation|
|IFSC||Indian Financial System Code|
|RBL||Ratnakar Bank Limited|
|ICICI||Credit and Investment Corporation of India|
|ATM||Automated Teller Machine|
|RTGC||Real-Time Gross Settlement|
|NEFT||National Electronic Funds Transfer|