Banking-Indian Financial Organizations - By: Akosha

Bank is a financial organization, which forms a bridge between people with surplus amount of capital and people who needs it. Banks are highly regulated organization in most of the countries due to complications it face and its financial status.
Most of the banks work under a system known as fractional reserve banking. According to this system they hold a fraction of amount people save in the bank and lend rest of it to others. Banks come under corporate institutes; there is upper limit to the number of members i.e. ten. Other then saving and lending money, there are several other things banks are involved into. Activities of bank includes payment of checks, loans, ATM cards, trade services, transferring of money from place to another or from one person to another.
. There are ten kinds of banks
• Commercial bank
• Community banks
• Community development banks
• Credit unions
• Postal saving banks
• Private banks
• Offshore banks
• Savings banks
• Building societies bank
• Ethical banks
• Direct or indirect only bank
• Banks also provide number of insurance policies like education loan, vehicle loan, home loan, personal loan etc. Banks play an important role in the economy of any country as it maintains the interest rate on various kinds of loans and saving or deposit accounts.
• Today mobile banking and net banking has increased the usability of bank beyond limits. You can get your reservation done sitting back at home through internet banking, any kind online shopping, mobile recharge, etc all is possible now.
• Through mobile banking, you can get updates about your bank balance every week and you will also be informed about any kind of transactions made in your account. Bank balance also reflects the economic situation of the firm or a person.
A bank can generate income or revenues in various ways like interests, transaction fees, financial advice, etc. the main way of generating revenue is by earning interests. The interest should be high to earn more but it cannot go beyond the regulations and limits set by regulating authorities and keeping in mind the interest rates of other competitive banks. The profit generated depends on the difference between lending interest and borrowing interests.
In India the banks can be widely divided in following categories
• Nationalized bank
• Public sector banks
• Private sector banks
• Foreign banks operating in India
• Co-operative banks
There are four bank regulating bodies in India
• Reserve bank of India
• Securities and exchange board of India
• Forward market commission of India and
• Insurance regulator and development authority.
Axis Bank is one of the first few private banks of India. It began its operation in the year 1994. The bank’s registered office is in Ahmadabad. It has one the longest ATM chain in India; these ATM’s provide 24 hour service, which makes it convenient for customers. Its central office is located in Mumbai. The complaint against axis bank are not very common, they are at times about delay in service. ICICI is the India’s second largest bank. It has a huge network with more than two thousand branches and nearly seven thousand ATM’s. It provides wide range of services and financial products to its customer. ICICI bank fraud complaints are regarding its services being expensive and the illegitimate way of loan recovery opted by the bank official.

About the Author

I am writing on consumer rights and other relevant topics related to consumer welfare. I am handling a consumer forum to get resolved consumer complaints. many customer care center does not give respond like ICICI Bank customer care and Axis bank customer care. we do companies constrain to solve people's problems.

Article Directory Source: http://www.articlerich.com/profile/Akosha/200623

Additional Articles From - Home | Finance | Banking