CBSE Class 12 FMM Banking Operations

Read and download CBSE Class 12 FMM Banking Operations chapter in NCERT book for Class 12 Other Subjects. You can download latest NCERT eBooks for 2021 chapter wise in PDF format free from This Other Subjects textbook for Class 12 is designed by NCERT and is very useful for students. Please also refer to the NCERT solutions for Class 12 Other Subjects to understand the answers of the exercise questions given at the end of this chapter



Learning Objectives :

After studying this Chapter you will be able to

   . list out the new instruments offered by banks;

   . understand the types of loans given by banks; and other financial services.

   . know the meaning of and different types of personal banking services.

   . appreciate the meaning and importance of NRI banking.

explain the meaning and importance of corporate banking.

. understand the meaning and advantages of mobile banking, internet banking at Core banking


2.1 Deposits

For investment of surplus funds or to create a fund for future needs like children’s’ education and marriage, construction of house, business, etc one can find plenty of opportunities to deposit money banks under various deposit schemes. Now a days almost all banks are computerized, core banking/ network banking system is introduced which helps the people to deposit money at their own convenient locations.

2.2 Types of Deposits

The following are some of the deposit schemes available in banks:

   1. Current Account

   2. Savings Account

   3. Term Deposit/Fixed Deposit/ Recurring Deposit Account

   4. Multi Option Deposit Account

The first three accounts were already discussed in Class XI and the last type is discussed below:

Multi Option Deposit Scheme is a term deposit which is not fixed at all and comes with a unique break-up facility which provides full liquidity as well as benefit of higher rate of interest, through the savings bank account. One can also keep that deposit intact by availing an overdraft facility, to meet occasional temporary funds requirements. Individual banks have their own deposit schemes to suit the current as well as future needs of the people. You may visit nearby branches of the banks and collect information about different types of deposit accounts to ascertain the comparative advantages and limitations of the different types of deposit schemes.

2.3 Loans

Banks have variety of schemes under Personal Finance to satisfy varying needs of the banking public. Banks provide credit in the form of overdraft or loans. Overdraft facility is generally provided on current account. Overdraft is a service provided by a bank to utilize money even when there is no balance in the customer’s account. It is a form of credit and one has to pay interest for the overdraft drawn. It is an arrangement made to cover the cash shortages. The rates differ from bank to bank and depend on the time period also. It is not suitable for long period of time. Bank loan is the money which one borrows from the bank for a specific purpose for specific period with agreement for interest and repayment periods etc.


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