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Banking Book

Banking Book

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Publicado por9290010274
Banking Book
Banking Book

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Published by: 9290010274 on Nov 08, 2011
Direitos Autorais:Attribution Non-commercial


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The main functions of the indigenous bankers are as follows:

1. Accepting Deposits: Indigenous bankers accept deposits from the public. These
deposits are of two types: (a) the deposits which are repayable on demand, and
(b) the deposits which are repayable after a fixed period. The indigenous bankers
pay higher rate of interest than that paid by the commercial banks.
2. Advancing Loans: The indigenous bankers advance loans to their customers
against all types of securities, such as land, houses, crops, gold and silver. They
also give credit against personal security. They finance inland trade, including the
movement of agricultural commodities like sugar, oil seeds etc. But they do not grant
direct loans to farmers. They give loans to farmers through money-lenders. They
provide loans to small industries which cannot fulfil the necessary loan conditions
of commercial banks. In recent years, they are also providing working capital to the
small industrialists.



3. Business in Hundies: The indigenous bankers deal in hundies. They write hundies
and buy and sell hundies. They also discount hundies and thereby meet the financial
needs of the internal traders. They also transfer funds from one place to another
through discounting of hundies.
4. Acceptance of Valuables for Safe Custody: Indigenous bankers accept valuables
of their clients for safe custody. Some indigenous bankers provide cheque facility.
They provide remittance facilities also.
5. Non-banking Functions: Most of the indigenous banks or bankers also carry
on their non-banking business along with the banking activities. They generally
have their retail trading business. They also participate in speculative activities.
Sometimes, they act as agents to big commercial firms and earn commission.

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