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

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.