Banks are the important pillars of a country’s financial well being. The following Essay on banks discusses about functions and importance of banks in our life. The short & long essay is quite helpful for children & students.
Essay on Banks | Functions, Value & Importance of Banks | Short & Long Essay For Students
Banking is the practice of accepting deposited funds from individuals and companies and issuing credit on credit. Banks carry out a number of functions, but these are the primary ones. Additional services they provide include lockers, transfers of funds, issuing drafts, and portfolio management.
Banking institutions are vital to the country’s financial stability. The company provides a number of financial services to make your life easier. Thus, they are essential to the functioning of any society.
Importance of Banks
People depend on banks for a variety of reasons, including the development of their economy and the day-to-day existence. Here is why these institutions are of importance:
1. Providing a sense of safety and security: It’s not safe to keep money at home. It’s vulnerable to burglary. The bank is responsible for safeguarding your money when it is in the bank. It is secure, so you do not need to worry.
2. Savings habits are encouraged: From time to time, banks offer various schemes to encourage saving habits in people. You not only save but also earn interest when you deposit your money at the bank. You can withdraw it at any time if you want.
3. Facilitates trade and commerce: Providing loans and advances to traders, banks promote trade within the country. This facilitates trade between countries as well. They offer easy ways to make payments.. With the advancement in the financial system, sending and receiving funds from anywhere is easy.
4. Promoting the agriculture sector: Economic growth relies heavily on agricultural output. The farmers are given loans at low interest rates by special banks to promote agricultural activities. In this way, banks promote agriculture.
5. Contributes to the development of industry: Banks are responsible for facilitating the flow of funds from individuals and businesses to households and businesses. In this way they contribute to the development of various industries. Easy installments are available to repay the loan.
6. Provides Opportunities for Employment: Banking institutions provide growth and development loans for agriculture and industry. With the expansion of these sectors, more jobs are created.
A bank is a crucial part of any nation. With the help of modern banking services, trade has been eased, development of industries encouraged, and other activities which contribute to the success of the nation have been enhanced. A country’s economy depends very much on the development of banks and other financial institutions that facilitate business growth and safeguard the finances of individuals.
Short Essay on Banks For Students
In many parts of the world, deposits and loans have been initiated by the banking system. Since then, the system has evolved, and banks now offer various other services in addition to the basic depositing and lending of money.
Keeping your money in the bank is the safest and most secure way to store your money. Additionally, the bank earns a good amount of interest on fixed deposits and recurring deposits. The bank lockers are an ideal place to keep jewelry and important papers, as well as money.
Banks also benefit individuals and businesses by providing loans, which is another primary function. With the help of bank loans, salaried people can build their assets like property, cars, etc easily.
This facility enables businessmen to grow their business. There are also a number of other services offered to businesses to simplify their financial transactions as well as aid in the growth of the business.
Digital banking has further enhanced the banking process. On the bank’s website, you can check your balance, transfer money, apply for a loan, and much more. Customers only need to select the Internet Banking service.