Essay on bank

Banks are financial institutions that deal in monetary transactions. Banks are an integral part of any society. Many banks are located in different parts of our country. While earlier there were limited numbers of banks with few branches in large cities and towns in India, in the last few decades many new banks have opened in every nook and cranny of the country.

Essay on bank, short essay on bank in hindi (200 words)

The banking system that involves accepting deposits and lending money started centuries ago in different parts of the world. The system improved over time and banks these days provide many other facilities besides basic deposits and lending. People are encouraged to keep their money in banks as it is a safe and secure way to store money.

Money collected in the form of fixed deposits and recurring deposits in the bank is also found in good quantity. Apart from money, one can also keep jewelery and important papers in a bank locker. Providing loans, which is another primary function of banks, is also beneficial for individuals and businesses in many ways. Salaried people can also buy their assets like cars etc. with the help of loan from the bank.

Businessmen can expand their businesses with this facility. Many other services are also provided to businessmen to ease their financial transactions and help in the growth of their business. Online banking has further enhanced the banking process. Various banking services like checking balance, transferring funds, applying for loans have now been made available on the bank’s website. All customers need to opt for internet banking service.

Essay on bank, 300 words:

Preface :

The banking system has been in force for centuries. This system is prevalent in India as well as other parts of the world. Only the services provided and work done have increased over time.

History of banks:

Banking service began in the 14th century in parts of Renaissance Italy. It was started on the lines of the concept of borrowing and lending among people since ancient times. In ancient times, traders loaned grain to merchants and farmers. This was called the barter system. Over time the system evolved to accept deposits and borrowed money.

Fuggers, Medicis, Bernberg, Rothschild are among the few banking dynasties known to play a central role in the history of banking. They dominated the region for centuries. Modern banking services such as demonetisation and the issuance of reserve banking began in the 17th century. The Bank of England and The Royal Bank of Scotland are some of the oldest banks in the world.

History of banks in India:

In India, the banking system resembles the Vedic civilization. In those days even loans were given to the needy, only the kitty-gritti involved in this, were different.

The loan deeds of that period were known as Ranalekhya or Ranapatra. In the earlier times, big traders and landlords gave money to small traders and farmers on interest. This culture is still practiced in some villages of the country.

The lands or other valuable property of those who were unable to pay the amount were confiscated, as the banks do these days. Bank of Hindustan was the first bank established in India. It was opened in the year 1770 in Calcutta. Bank of Bombay, Bank of Calcutta and Bank of Madras were established in the early 19th century.


There are many types of banks in every country to cater to the needs of different customers. They provide various services and assistance in the development of the country’s economy.

Essay on bank, essay on bank in hindi (400 words)

Introduction A bank is an institution that accepts money deposits from the public and provides money on loans to individuals as well as firms. These are the primary functions of the bank but are not the only functions. They provide various other services to their clients such as locker facility, transfer of funds, issue of drafts and portfolio management to name a few etc. are its main functions.

Importance of banks:

Banks are important for the development of individuals as well as the economy of the country. Some points below tell us the importance of banks:

Provides safety and security:

Money kept at home is not safe. It is a threat of theft. When you keep your money in the bank, it is the bank’s responsibility to keep it safe. You do not need to worry about its safety.

Encourages Saving Habits:

Banks periodically offer various schemes to encourage savings habits among people. The money poured into the bank not only survives, but also grows. You have the option to withdraw it at any time.

Business and Commerce matters:

Banks promote trade within the country by providing loans and advances to traders. It also makes the process of trade between different countries easier. They provide easy money transaction options to smooth the process. With the advancement in the banking system, sending and receiving money from anywhere is easy.

Promotes the agricultural sector:

The agricultural sector is an important part of the economy. There are specialized banks that provide loans at low interest to farmers to promote agricultural activities. Thus banks help in promoting agriculture sector.

Assisted in the development of industries:

Banks accept deposits from individuals and businesses and provide weightage to industries. They thus assist in the development of various industries. The loan can be repaid in easy installments.

Provides employment opportunities:

Banks provide loans for the growth and development of agricultural and industrial sectors. As these areas expand, many employment opportunities arise for the public.


Banks are an important part of any country. Modern banking services have helped in easing the process of trade, development of industries and other activities which help in the development of the country’s economy. Banks and other financial institutions that promote the development of businesses and safeguard the wealth and other valuable assets of individuals certainly play an integral role in the development of the country’s economy.

Essay on bank, 500 words:

Preface :

Banks play an important role in maintaining financial stability in the country. They provide many services to help you manage your finances better. Thus these institutions are an important part of any society.

Functions of banks:

The functions of banks are broadly classified into two categories. These are primary functions and secondary functions. Here’s a look at these in detail:

primary task :

Primary functions are the main functions of banks. These include accepting deposits and providing loans. Here is a brief look at these works:

1. Accepting Deposit:

These deposits are basically of four different types: Deposit saving: These encourage the deposit public to save money. Money can be easily withdrawn and deposited in a savings account without any restrictions. However, the interest rate here is quite low.

Current Deposit:

This account is exclusively for businessmen. These accounts provide facilities like overdrafts which are beneficial for businesses. No interest is paid on this account.

Fixed Deposit:

In a fixed deposit, a very large amount is deposited into the account for a fixed period. The rate of interest in such deposits is high. Recurring Deposit: A fixed amount is deposited in such an account at regular intervals. The rate of interest is high. However, the amount cannot be withdrawn before a certain period.

2. Funding:

The loans and advances offered by banks are as follows:


Loans are given for both short term and long term duration. The rate of similar interest varies depending on the type and duration of the loan. It can be repaid in installments.

Cash Credit:

Customers have the facility to take a cash credit up to a certain amount which is fixed in advance. For this a separate cash credit account has to be maintained.


This facility is for businessmen. It is thus provided to the current account holders. They do not need to maintain a separate account to avail this facility.

Secondary work:

Secondary functions, also known as non-banking functions, are of two types. These are agency functions and general utility functions. Here is a brief look at both these types of works:

1. Agency Functions:

The bank also acts as an agent for its customers. Many agency functions are performed by this institution. These include collection of checks, periodic payments, portfolio management, periodic collections and money transfers. Banks also act as executors, administrators, consultants and trustees for their customers. They help their clients deal with other institutions.

2. Common utility functions:

Banks also carry out common utility functions including providing locker facilities, underwriting of shares, dealing in foreign exchange, issuing drafts and letter of credit, project reports, social welfare programs such as public welfare campaigns and adult literacy programs. Bill of Exchange is another service provided under this.


Whereas initially the functions of banks consisted only of accepting deposits and providing loans; They have now started providing various other services. All these facilities are intended to help customers with their finances.

Essay on bank, essay on bank (600 words)

Preface :

Banks are financial institutions that lend money and accept deposits from the general public. Banks maintain the flow of money in the country and are important for its economic development. There are different types of banks that provide different types of services to individuals as well as businesses.

Types of banks:

Here are different types of banks and their functions:

National Bank:

National banks, also known as central or federal banks, these banks manage the financial system of the government. These non-profit institutions work as bankers to other banks. There is a central bank in every country. Some of the functions of national banks include overseeing foreign exchange, controlling the country’s currency and issuing paper currency. They do not deal with the general public.

retail banks :

These are the most common types of banks. These are set up primarily to focus on the needs of the general public. They open your savings account, provide credit cards, make loans and provide locker facilities among other services.

Savings Banks:

These have been specifically established to inculcate the habit of saving money among the people. Deposits from customers are converted into securities and bonds in these banks. These were established in European countries in the 18th century. Apart from this, these banks also provide many other services when accepting deposits from these banks.

Commercial Bank :

The main objective of these banks is to help the merchant class. They provide loans to businessmen and also provide other services which are useful for business men. Some of these services include bill of exchange, overdraft and check collection.

Land Mortgage Bank:

Also known as agricultural banks or land development banks, these are primarily set up to assist the agricultural sector by financing them. These banks also play an important role in land development. The reason this particular category of banks come into existence is that there is a lot of risk in financing the agricultural sector and commercial banks that support other businesses are not ready to take such risks.

Cooperative bank :

Cooperative banks provide loans to small scale farmers, small scale businesses and salaried people. They provide both commercial and retail services to the people. These banks are registered under the Co-operative Societies Act, 1912.

Consumer Bank:

These banks have been specifically set up to provide loans to purchase durable consumer goods such as cars, washing machines, refrigerators, furniture, etc. These banks give their consumers the benefit of repaying the loan in easy installments. These are mostly found in first world countries.

Industrial Bank:

Also known as development banks, these banks are set up to assist the industrial sector. These banks accept cash by issuing shares and debentures. They provide long-term loans to help industries expand and grow. Many such banks have been established after the independence of the country.

Exchange Bank:

These banks are particularly engaged in financing foreign trade. Some of the main functions of these banks include discounting foreign bills, buying and selling silver and gold, and providing assistance in doing export and import trade.


Banks are set up to ease the financial issues of the general public as well as the entire country. Different types of banks serve different purposes and have been set up to cater to the needs of different classes.


by Abdullah Sam
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