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Collection Banker The term "collecting banker" refers to a financial institution that collects and processes financial instruments (such as checks or drafts) on behalf of its customers. The collecting banker plays a crucial role in the clearing and settlement of these instruments. Here are some key capacities and roles associated with a collecting banker: Agent of the Customer: In the capacity of an agent, the collecting banker acts on behalf of its customer to collect funds. The customer (drawer) gives the authority to the bank to collect payments on instruments presented for payment.                                                                                                              ...

CLASSIFICATION OF BANKS   The banking institutions form an indispensable part in a modern developing society. They perform varied functions to meet the demands of various sections of the society. On the basis of the functions performed and its ownership, the banks can be classified into the following types: A. On the Basis of Functions:   1.   Commercial Banks   2.   Industrial Banks 1.      Regional Rural Banks 2.      Exchange Banks 3.      Central Bank B. On the Basis of Ownership: 1.      Public Sector Banks 2.      Private Sector Banks 3.      Co - operative Banks C. On the Basis of Schedules of RBI: 1.      Scheduled Bank 2.      Non - Scheduled Bank     A. On the basis of Functions: Commercial Bank: Banks, which help for the development of trade and com...

CENTRAL BANKING   The central bank is the apex bank in a country. It is called by different names in different country. It is the Reserve Bank of India in India, The bank of England in England, The Federal Reserve System in America, and the bank of France in France the risk bank in Sweden etc. DEFININITION OF CENTRAL BANK v W.A Shaw defines “a central bank as a bank which control credit”. v According to A.C.L Day, a central bank is “to help control and stabilize the monetary and banking system”.   Objectives of Central Banking   1.      Monetary Stability: •         Central banks often prioritize maintaining price stability and controlling inflation within a target range. They aim to ensure the purchasing power of the currency remains relatively stable over time, fostering confidence in the economy. 2.      Economic Growth and Stability: •      ...