Business services refer to those services which help business enterprises to conduct their activities. Banking involves transacting the business of banking, i.e., acceptance of deposits of money from the public for the purpose of lending & investments, which are repayable on demand or otherwise & are withdrawable by cheques, drafts, order or otherwise. Banks accept money on deposits, repayable on demand and also earn marginal profits by lending money. There are five types of bank accounts. These are Saving, Current, Recurring Deposit, Fixed Deposit and Multiple Option Deposit Accounts. Savings account is meant for general public. Current account is generally meant for business enterprises. Under fixed deposit account, deposits are made for a fixed period. In recurring deposit account regular monthly deposit is required over a period of time. Multiple option deposit account is a combination of saving account and fixed deposit account. Different types of banking services are bank draft, banker’s cheque, national electronic fund, real time grosssettlement,cash credit and bank overdraft. Bank draft is a type of cheque which is drawn by a bank either on its own branch or on another bank in favour of a third party for transfer of funds. Banker’s chequerefers to a bank draft payable within a city or town.
Realtime gross settlementrefers to a fund transfer system where in transfer of funds takes place from one bank to another on ‘Real Time’ and ‘Gross Settlement’ basis. Nationalelectronic fund transferrefers to a nationwide system that enables individuals and firms to electronically transfer funds, from any bank branch to another individual, firm or company having an account with any other bank branch in the country. Cash credit is referred to as a short term cash loan sanctioned up to a specified limit called the cash credit limit, to a company, which is determined by the bank’s estimation of the borrower’s credit-worthiness. Bank overdraft is a short term loan wherein a customer is allowed to overdraw his current account upto a specified limit. Electronic banking or e-banking refers to services provided by banks & other financial institutions on the internet.