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Banking in India: Definition, features and forms of Banks

Banking in India: Definition, features and forms of Banks

By B2B
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Concept of a Bank

A lender is a lender which executes the deposit and function that is lending. a lender permits an individual with extra cash (Saver) to deposit their cash into the bank and earns a pastime price. Likewise, the financial institution lends to an individual who requires money (investor/borrower) at mortgage loan. Hence, the banking institutions work as an intermediary between your saver and also the debtor.

The lender often takes a deposit through the general general general public at a far lower rate known as deposit rate and lends the amount of money to your debtor at an increased rate of interest known as financing rate.

The difference between the deposit and financing price is named ‘net interest spread’, and also the interest scatter comprises the banking institutions income.