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What is Banking ?

Source : MoneyControl

Banking by definition means a financial institution that accepts deposits from the public and creates credits. Banking in today’s era has become a part and parcel of life.

Gone are the days when people used to struggle standing in lines to deposit their money in the banks. Thanks to the development in Information and Technology, even bigger amounts can be deposited in the accounts with just a click on the smartphones. This process is popularly called Digital Banking.

All over the world, the banking system operates from governmental rules and private entrepreneurs. Private Banks such as HDFC which is among the biggest bank chain in India is one such private bank which provides great customer services and operates in almost all small as well as big areas.

But, since every coin has dual sides, the drawback of such banks is that they charge numerous charges. If there is a lesser amount than the prescribed amount in the bank account, then the bank charges a huge of charges which might trouble the depositor as a common man.

While the government owned banks like South Indian Bank whose main aim is to look after the welfare of the people by allowing them to make the deposits without any prescribed minimum amount. That’s the difference between public and private companies. While PSUs (public Sector Undertakings) main aim is to help people, private banks work to make profits.

Banks are the ones which prove to be a God for a common man who is looking to get a loan for may be his daughter’s marriage but they are also the ones who need their money back at a particular exact time, hence, proving to be a friend but at the same time a strong and tough Zamindar who might go to any extent to take his money back.