In this article you will find long and short Long and Short Essay, Paragraph, Article on Bank for nursery essay, lkg essay, ukg essay, 1st to 12th, IAS, IPS Banking and other competitive exams essay and more. Essay of 200, 300, 400, 500 & 600 words for kids and students in Very Simple & Easy Words.
Though earlier there were limited number of banks in India with few branches in big cities and towns but in the last few decades many new banks have opened branches everywhere and in every corner of the country. Essays of various lengths have been provided on the bank to help you on this subject whenever you need. You can choose the essay on any bank of your choice given:
200 Words – Long and Short Essay on Bank for Kids & Students in Very Easy Words
Banking system is the system which involves depositing and lending money. This process was started centuries ago in different parts of the world. As time went on, the system changed and banks improved a lot and nowadays banks provide many other facilities besides depositing and lending basic funds.
People are encouraged to keep their money in banks as it is a safe and fear-free way of depositing money. Money deposited in the bank in the form of term account and recurring account brings good amount of interest. Apart from money, banks can also keep jewelry and important papers in lockers.
Providing loans, which is another primary function of banks, is also beneficial for individuals and businesses in many ways. Employees can easily acquire property such as land, car etc. with the help of bank loan. Businessmen can expand their business with this facility. Many other services are also offered to merchants to reduce their financial transactions and assist in the growth of their business.
Online banking has further enhanced the banking process. Various banking services such as checking money in account, transfer of funds, applying for loan have now been made available on the bank’s website. It is necessary for all customers to opt for Internet banking service.
300 Words – Long and Short Essay on Bank for Kids & Students in Very Easy Words
The banking system has been in place for centuries. This system is prevalent in India as well as in other parts of the world. The services and functions being provided have increased over time.
History of banks
Banking service began in parts of Italy in the 14th century. It was introduced on the lines of the concept of lending and borrowing among the people since the ancient era. In ancient times, traders gave grain loans to the banias and farmers. This was called the barter system. With the passage of time, the system of hoarding and lending money kept evolving.
Faggers, Medicis, Berenbergs, Rothschills are among the banking dynasties known to play a central role in the history of banking. They have ruled the region for centuries. Some modern banking services started in the 17th century, such as issuing banknotes and reserve banking. The Bank of England and The Royal Bank of Scotland are one of the oldest banks in the world.
History of banks in India
The banking system in India dates back to the era of Vedic civilization. In that era loans were given to the needy. In that period the loan was known as the letter of credit or debenture.
In earlier times, big traders and zamindars used to give money to small traders and farmers on interest. This culture is still practiced in some villages of the country. Those who were unable to pay the amount, their land or other valuable assets were confiscated like banks do today.
Bank of Hindustan was the first bank established in India. It was opened in Calcutta in 1770. Bank of Bombay, Bank of Calcutta and Bank of Madras were established in the early 19th century.
The conclusion
There are many types of banks in every country to cater to the needs of different customers. They assist in the development of various services and economy of the country.
400 Words – Long and Short Essay on Bank for Kids & Students in Very Easy Words
A bank is an institution that deposits funds from the public and provides funds to individuals as well as firms. These are the primary functions of a bank but are not the only ones. They also provide many other services to their clients such as locker facility, transfer of funds, issue of drafts and portfolio management etc.
Importance of banks
Banks are important for individuals as well as for the development of the country’s economy. This is why these institutions have the following importance:
Provides relief and protection from fear
Money kept at home is not safe. There is a fear of it being stolen. When you keep your money in the bank, the responsibility of the bank is to protect it. You do not have to worry about its safety.
Encourages saving habits
Banks offer various schemes from time to time to encourage savings habits among people. Money deposited in a bank is not only safe but also grows. You have the option to withdraw it at any time.
Enhances trade and commerce
Banks promote trade in the country by providing loans and advances to traders. This makes the process of trade between different countries easier. They provide the option of money transactions in a simple way to make this process easier. It is easy to send and receive funds anywhere in the advanced banking system.
Promotes agricultural sector
The agricultural sector is an important part of the economy. There are specialized banks that provide loans to farmers at low interest to promote agricultural activities. Thus banks provide assistance in promoting the agricultural sector.
Assists in the development of industries
Banks accept money from individuals and businesses and lend to industries. They thus assist in the development of various industries in this way. The loan can be repaid in easy installments.
Provides employment
Banks provide loans for the development and progress of agricultural and industrial sectors. As these sectors expand, public employment opportunities are created.
The conclusion
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 protect the wealth and other valuable assets of individuals certainly play an integral role in the development of a country’s economy.
500 Words – Long and Short Essay on Bank for Kids & Students in Very Easy Words
Banks play an important role in maintaining financial stability in the country. They provide many services to help you manage your finances better. These institutions are an important part of society.
Functions of banks
The functions of banks are broadly classified into two categories. These are primary functions and secondary functions. Here is detailed information on these:
Primary task
Primary functions are the main functions of banks. These include accepting money and providing loans. Here is an abbreviated form of these works:
Accepting money
These accounts are basically of four different types:
Savings Accounts: These accounts encourage the public to save money. Money can be withdrawn easily from them and deposited in a savings account without any restrictions. The interest rate in these accounts is quite low.
Current Accounts: This account is exclusively for businessmen. These accounts provide facilities like overdrafts that are beneficial for businesses. No interest is paid in this account.
Term Account: A fixed amount of money is deposited in a term account for a fixed period. The interest rate in such deposits is high.
Recurring Account: A fixed amount is deposited in such account at regular intervals. The interest rate is high. However, the amount cannot be withdrawn before a certain period.
Grant of loan
Here are the types of loans and lending offered by banks:
- Loan: Loan is given for both short term and long term. The rate of interest charged on the fee varies depending on the loan and the type of loan. It can be repaid in installments.
- Cash Credit: Customers have the facility to take a fixed amount of cash which is fixed in the money limit. For this a separate cash credit account should be maintained.
- Overdraft: This facility is for merchants. Thus it is provided to the current account holders. They do not need to maintain separate accounts 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:
Agency functions
The bank also acts as an agent for its customers. Many agency functions are performed by this institution. This includes collection of checks, periodic payments, portfolio management, periodic collection and transfer of funds. Banks also act as executors, administrators, consultants and trustees for their customers. They also help their clients deal with other institutions.
General utility work
Banks also carry out general utility functions including locker facility, accounting of shares, working in foreign exchange, issuing letters and drafts of credit, preparing project reports, undertaking social welfare programs such as public welfare campaigns and adult literacy programs Huh.
Another service provided under this is the exemption of bill of exchange.
The conclusion
Although initially the functions of the banks consisted only of depositing funds and providing loans. They have now also provided many other services. All these facilities are intended to help customers with their finances.
600 Words – Long and Short Essay on Bank for Kids & Students in Very Easy Words
Banks are financial institutions that lend money to the general public and accept to deposit their money. Banks maintain the flow of money in the country and partners are also important for the economic development of the country. There are different types of banks that provide different types of services for individuals as well as businesses.
Types of banks
Here are the different types of banks and their functions:
National Bank
Apart from this name, these banks are also known as central or federal banks. These banks manage the financial system of the government. These non-profit institutions serve as bankers in other banks. Each country has a central bank. Some of the functions of national banks include monitoring foreign exchange, controlling the country’s currency and issuing paper currency. They do not deal with the general public.
Retail bank
This is the most common type of banks. These have been established to focus on the needs of the general public. These banks open savings accounts, provide credit cards, provide loans and provide locker facility among other services.
Saving Bank
These have been specifically established to inculcate the habit of saving money among the people. The money deposited from customers in these banks is converted into securities and bonds. These were established in European countries back in the 18th century. Apart from this, these banks also provide many other services by accepting deposits of people.
Commercial bank
The main objective of these banks is to assist the business class. They provide loans to merchants and also provide them other services which are useful for business men. Some of these services include bill exchange, overdraft and check collection.
Investment Bank
These banks have also been set up to assist businesses. With the help of these banks, traders have established a strong position in the financial markets. Investment banks provide facilities to businessmen who need to sell loans to investors or want to get money from the public good for their business.
Land mortgage bank
They are also known as agricultural banks or land development banks. It has been set up primarily to assist the agricultural sector by financing it. These banks also play an important role in land development. The reason for falling into this particular category of banks 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.
Co-operative Banks
Cooperative / cooperative banks provide loans to small farmers, small businesses and salaried people. They provide commercial and retail services to the people. These banks are registered under the Cooperative 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 other countries.
Industrial Bank
They are also known as Development Bank. These banks have been set up to support the industrial sector. These banks accept cash money by issuing shares and debentures. These banks provide long term loans to the industries to help them expand and grow them. After independence, many such banks have been established in the country.
Exchange Bank
These banks exclusively finance foreign trade. Some of the main functions of these banks include relaxation of foreign bills, sale and purchase of silver and gold and providing assistance in running export and import business.
The conclusion
Banks are established 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 sections.