Functions of Banks | Bank Definition And Important Banking Services

functions of banks

The banking system plays a vital role in economic development and is one of the most significant components of the financial system of any country. The banks not only facilitates the creation of credit but at the same time they provide numerous other services for the management and transactions of funds between two persons or entities.

In this article, we will help you to understand what exactly the banks are? what are the key functions they perform and how important they are for the economic development of a country?

Read more

Bankers Cheque | How it is Different from Demand Drafts?

bankers cheque

In case of high-value transactions, real estate companies, government entities, colleges or other large corporations/ institutions typically don’t accept general/ personal cheques from individuals or firms to receive payment because there is always a risk of dishonour of the cheque. Therefore, such organisations/ institutions instruct the individuals/ entities to enclose a bankers cheque or demand drafts in order to pay the amount.

Read more

What are Cheques? 11 Different Types of Cheques

types of cheques

These days, there are millions of transactions happening every day between two persons or parties whether it is business transactions or personal or repaying debt, cheques play a vital role when it comes to monetary transactions. Cheques not only facilitate monetary transactions between two parties/ persons but also it ensures the safety, security and minimises the risk of default during business deals.

Read more

ELSS vs Mutual Funds | 5 Major Aspects

ELSS vs Mutual Funds

ELSS (Equity Linked Saving Schemes) is nothing but a type of mutual funds which offers a tax rebate on returns earned during investment horizon, on the other hand, common mutual funds don’t such tax rebate. In this article, let us understand the major differences between ELSS vs mutual funds.

When it comes to mutual funds investment, there are two options whether one can invest in common mutual funds or in Equity linked Savings Schemes (ELSS) mutual funds. Although both ELSS and mutual funds are understood as a separate instrument yet ELSS is a branch of mutual funds, means mutual funds is a broad term whereas ELSS is a narrow term.  

Read more