Banking Basics: An Introduction to Banking Awareness

by Yuvi K - December 16, 2023

Introduction :
Banking is an integral part of every modern day economical system. Its primary purpose is to facilitate transactions in a secure, cost-effective and efficient manner. Banking has come a long way since the inception of the banking industry. From processing payments, providing loans and managing investments, banks offer a wide range of services and products to consumers and businesses.

Therefore, knowledge of basic banking is essential to navigate today’s banking world. In this article, we will introduce you to some of the key concepts of banking.

Accounts and Transactions :
In banking, a bank account is traditionally referred to as a ‘current’, ‘savings’ or ‘deposit’ account. (बैंक में, बैंक खाता पुराने समय में ‘वर्तमान’, ‘सेविंग’ या ‘जमा’ खाता के रूप में उल्लेख किया जाता है।)

The transaction types that can be done using a bank account are:

• Deposits – Money can be deposited into a bank account either at a bank branch or through an online transfer.
• Withdrawals – Money can be withdrawn from a bank account either at a bank branch or through an ATM.
• Payments – Bank accounts are used to pay for everyday expenses including bills, rent, etc.
• Transfers – Bank accounts can also be used to transfer funds between two people or across different accounts.
• Investments – Banks also provide services for savings and investments such as fixed deposits and mutual funds.

Interest Rates :
Interest rate is a key concept in banking, and is expressed as a percentage. (बैंकिंग में ब्याज दर एक महत्वपूर्ण दृष्टिकोण है और प्रतिशत रूप में व्यक्त किया जाता है।) Banks normally charge interest on loans and credit cards, while they pay interest to customers on deposits.

The rate of interest depends on several factors including the type and duration of the deposit, the risk profile of the borrower and the prevailing market rates. Banks also offer different interest rates for savings and investments depending on the type of product.

Table 1. Different Interest Rates Offered By Banks

Type of Banking Product Interest Rate
Savings account 1-3%
Fixed deposit 3-6%
Mutual funds 6-9%
Loans 9-18%

Fees and Charges :
Banks normally charge fees for certain services and transactions. These include processing fees, annual fees, transaction fees, overdraft fees and more. These fees are either deducted from the customer’s account or charged upfront, and can vary based on the type of product or service.

It is important to understand the fees and charges associated with banking, as they can add up quickly and impact your budget. (यह बैंकिंग के साथ जुड़ी शुल्क और शुल्कों को समझना महत्वपूर्ण है, क्योंकि ये त्वरित बढ़ सकती हैं और आपके बजट पर प्रभाव डाल सकते हैं।)

Debit and Credit Cards :
Debit and credit cards are widely used by customers to pay for goods and services. Debit cards are linked to a customer’s bank account, and are typically used to withdraw money from an ATM or to pay for items directly from a bank account. Credit cards are different from debit cards in that they allow for more flexibility by letting customers borrow money from the bank at a pre-determined interest rate. (डेबिट और क्रेडिट कार्ड के उपयोग से ग्राहकों द्वारा उत्पादों और सेवाओं के लिए भुगतान करने के लिए विश्वव्यापी रूप से इस्तेमाल किया जाता है। डेबिट कार्ड एक ग्राहक के बैंक खाते से जुड़े हुए होते हैं और आम तौर पर एटीएम से धन निकालने या बैंक खाते से आइटम्स पूर्ण रूप से भुगतान करने के लिए इस्तेमाल किए जाते हैं।)

Conclusion :
This article provides a basic overview of the banking industry. It is important to stay knowledgeable on the various aspects of banking in order to make informed decisions and take advantage of all the benefits that banking has to offer. (इस लेख में, बैंकिंग के उद्देश्य से जुड़े कुछ महत्वपूर्ण बैंकिंग कोष्ठक को परिचित किया गया है। एक सुनिश्चित निर्णय लेने और बैंकिंग से सभी लाभ उठाने के लिए, बैंकिंग के विभिन्न पक्षों के बारे में जानकार रहना महत्वपूर्ण है।)

We hope that this article has