In modern times there are many services that are offered by the banks. This is done so that more and more customers are attracted. Although there are some basic services as well which are offered by the banks. Thus, these basic services are common for all banks. In this article, we will help you understand some of the services of banks which are common across all the banks in India.
Banka runs on the profit they make. They are into the business of making profits. So, to generate the profit they give loans to the public and private organizations.
Thus, in return, they get an interest paid to them which helps them in making a profit. Banks need to keep a minimum cash reserve with them.
So, after deducting this cash reserve, banks provide short, medium, and long-term loans to the people who are in need of it.
The person who holds an account in the bank is provided with the cheque pads.
Thus, the account holders draw cheque upon the bank when they are required to pay the money.
So after verifying formally, banks pay for the cheques and proceed with the official procedures.
This is another popular services of banks for lending the money. In this method, the person who holds the bill of exchange gets it discounted by the bank in exchange for a bill.
The creditor gives the payment to the debtor who accepts it and agrees that the amount shall be paid upon maturity. Once the marginal deductions are made the bank pays the value to the holder of the bill.
After that, when the bill is matured the banks get their payment from the person who has accepted the bill.
For modern purposes, there are a variety of instruments that are used as credit instruments. This includes promissory notes, bill of exchange, cheques, etc.
These instruments are dealt with by the banks. The banks are responsible for collecting and paying the different types of credit instruments.
These credit instruments are the representative of the customers.
In modern banking, customers are provided with the guarantee by the banks. This happens mostly when the customers have to deposit a large fund in courts or government offices for various reasons.
The banks itself acts as a guarantee for that person.
Modern banks expand their businesses and also provides consultancy services to its customers.
For this, they hire legal, financial, and market leaders and experts who can provide advice to customers regarding industry, income, trade, investment, etc.
It is a service that allows the holders to make the purchase of the goods and services in exchange for a credit card.
It immediately pays off for the services and goods while the cardholder is required to pay back the amount over a period of time with a certain percentage of interest.
In this facility, banks provide the customers to transfer their funds from one account to another using cheque, drafts, etc.
Debit cards withdraw the funds electronically from the cardholder accounts. To verify the transaction and keep it safe all the debit cards requires personal identification number (PIN).
