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Banking

A banking system is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits and it lends money to those who need it.

About Bank

The term bank is either derived from old Italian word banca or from a French word banque. Both mean a Bench or money exchange table. In olden days, European money lenders or money changers used to display (show) coins of different countries. In big heaps (quantity) on benches or tables for the purpose of lending or exchanging. It accepts money from the people in the form of deposits which are usually repayable on demand or after the expiry of a fixed period. It gives safety to the deposits of its customers and also acts as a custodian of funds of its customers.

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