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NCB SOCIETY 

     Objectives of commercial bank in points

The primary objective of commercial banks is Profit Maximization which is attained by offering a wide variety of services to individual and business customers. Commercial banks hold an important position in the economic development of the company.

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The main objectives of the Bank are listed and prioritized in the Law: To maintain price stability; to support other objectives of the Government's economic policy, especially growth, employment, and reducing social gaps; and supporting the stability of the financial system.

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Top 5 Functions Performed by Commercial Banks– Discussed!

  • (a) Accepting Deposits:

  • (b) Advancing Loans:

  • (c) Discounting Bills of Exchange or Hundies:

  • (d) Transfer of Money:

  • (e) Miscellaneous Functions:

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They include handling deposits, offering checking and savings accounts, and offering business, personal, and mortgage loans. National banks provide broader banking services, which can include many of the services a state bank will offer

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The functions of a central bank can be discussed as follows:

  • Currency regulator or bank of issue.

  • Bank to the government.

  • Custodian of Cash reserves.

  • Custodian of International currency.

  • Lender of last resort.

  • Clearing house for transfer and settlement.

  • Controller of credit.

  • Protecting depositors interests.

        Dr.Shizan Pervez  
Managing Director & CEO 

    What are the activities of a bank

Economic, price and financial system stability are necessary for sustained economic growth. Hence, the two objectives are in harmony and this enables the Central Bank to perform its main functions effectively.

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The most important functions of commercial banks are discussed below:

  • Accepting deposits: The most significant and traditional function of commercial bank is accepting deposits from the public. ...

  • Providing loans: ...

  • Credit Creation: ...

  • Transfer of funds: ...

  • Agency functions: ...

  • Other functions:

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Activities undertaken by banks include personal banking, corporate banking, investment banking, private banking, transaction banking, insurance, consumer finance, trade finance and other related.

What are the three main functions of a bank

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These primary functions of banks are explained below.

  • Accepting Deposits. The bank collects deposits from the public. ...

  • Granting of Loans and Advances. The bank advances loans to the business community and other members of the public. ...

  • Agency Functions. The bank acts as an agent of its customers. ...

  • General Utility Functions.

What are the 8 functions of a central bank?

Eight major functions of central bank in an economy are as follows: (1) Bank of Issue, (2) Banker, Agent and Advisor to Government, (3) Custodian of Cash Reserves, (4) Custodian of Foreign Balances, (5) Lender of Last Resort, (6) Clearing House, (7) Controller of Credit, and (8) Protection of Depositor's Interest.

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        What are the principles of banking

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Answer: The principles of commercial banking are the principles of:

  • Liquidity.

  • Profitability.

  • Solvency.

  • Safety.

  • Collection of Savings.

  • Loans and Investment Policy.

  • Economy.

  • Providing services.

Classification of Banks in India

Commercial Banks can be further classified into public sector banks, private sector banks, foreign banks and Regional Rural Banks (RRB). On the other hand, cooperative banks are classified into urban and rural. Apart from these, a fairly new addition to the structure is payments bank.

What are the 4 types of banks?

What are some different types of banks

  • Retail banks. Retail banks, also known as consumer banks, are commercial banks that offer consumer and personal banking services to the general public. ...

  • Commercial banks. ...

  • Community development banks. ...

  • Investment banks. ...

  • Online and neobanks. ...

  • Credit unions. ...

  • Savings and loan associations.

What are the types of accounts in a bank?

Here is a list of some of the types of bank accounts in India.

  • Current account. A current account is a deposit account for traders, business owners, and entrepreneurs, who need to make and receive payments more often than others. ...

  • Savings account. ...

  • Salary account. ...

  • Fixed deposit account. ...

  • Recurring deposit account. ...

  • NRI accounts.

What are 3 ways to deposit money?

Bottom line

  • Deposit cash at the bank.

  • Make an electronic transfer.

  • Make a wire transfer.

  • Write a check.

  • Use a cashier's check.

  • Use a money order.

                                        Banking Board Meeting Resolution

Yes, it is possible after following the provisions of Section 162 of Companies Act, 2013. Another question arises, what will be the requirement of appointing more than one director through single resolution only?

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A banking resolution is a necessary business document for corporations, both for-profit and nonprofit. While resolutions for LLCs are not legally required, they may still be needed in order to document the company decisions.

Sometimes the conflict is resolved in a way that is painful for characters, but ultimately, the conflict is resolved. Examples of Resolution: Two friends fight over a boy, but in the end, they realize that friendship is more important, and the boy ultimately moves away from the town anyway.

 

Like a bill, a joint resolution requires the approval of both Chambers in identical form and the president's signature to become law. ... Res., and followed by a number, must be passed in the same form by both houses, but they do not require the signature of the president and do not have the force of law

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(1) No resolution shall, unless the draft law, together with the necessary documents, has been circulated to the Board of directors or members of the committee, by circulation, at their addresses registered with the Company in India by hand delivery, post or courier, or through such electricity, unless it has been

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Section 159: Calling of Extraordinary General Meeting

An extra ordinary general meeting may be called at any time by the directors for consideration of any matter requiring approval of the company in a general meeting.

 

Essentially, the Board ratifies these past acts as of today. In other words, the resolutions are not “backdated” to when they occurred; rather, they are dated currently and expressly state that the events happened in the past.

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