THE ROLE OF BANK

Thursday, November 25, 2010

THE ROLE OF BANK
1. banks have a vital role to play in the economic growth growth of a country.
2. Banks produce a congenial environment for healthy economic progress.
3. Banks make essential arrangement for international trade.
4. Banks also provide many services to their customers.
5. Banks help in foreign trade through collection of bills.
6. Banks are responsible to provide capital for different sectors.
   Commercial banks determines the economic stability of a country.They fulfill financial needs of the various sectors.In fact,capital
is the basis of commerce and industry.A wwell-established banking system provides funds to all economic sectors including smallbusinessmen,
industrialists, contractors, farmers,cultivators,importers, exporters and traders.The banks act as middleman to make commercial transactions
 possible witout any delay.
   AT present hundreds of branches are providing banking servic to people of the contry.In addition to collecting deposits and making
advances,manks offer a widening range of services to their customers.Undertaking stock exchange transaction on behalf of their customers is
another activity of the commercial banks.They forward the orders of their customers to stock exchange brokers who try to earn a profit for
the stock owners.
   The commercial banks also provide necessary help to the traders busy in international trade.They help the customers doing export and
impor trade.Banks also collect and negotiate foreign bills which are the most important instruments of payment their customers.The
documentary credit is surely a better method of payment.Such operations are extremely important for the customers involved in foreign
trading.Banks provide the facility of purchase and sale of foreign currencies on the spot.
    In any country,capital is considered the backbone of economy.Shorof capital means underdevelopment.Commercial banks provide sufficient
amount pf capital to the various sectors of the economy.Banks move small savings throughout the country.the utility of capital.As a result
they provide an increase in national output, employment and per capita income. 
    In recent past,information technology brought a tremendous revolution in the world.It was quit natural that Banks would take advantage
from the latest facilities provided through computers.Banks established their network through computers and linked up all the branches
with one another.They started providing the facility of on-line banking.Moreover the customers are being provided the AATM facility.Now
utility bills can be paid through a mechanism provided by banks.Now it has become quite convenient for the customers to benefit themselves
form the latest technology. 

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