Operation Of Commercial Banking System In Indian Foreign Exchange Economy
Dr. Venkatesh. J* and Balasubramanian. M**
* Associate Professor, Department of Management Studies, Anna University, Regional Centre, Coimbatore, Jothipuram, Coimbatore – 641 047.
** Research Scholar – Department of Management Studies, Anna University, Regional Centre, Coimbatore, Jothipuram, Coimbatore – 641 047.
Abstract: Banking has come to occupy a crucial position in a nation’s economy. According to the modern concept, banking is a dealing which not only involves the action of borrowings, leading and remittance of funds, but it is also a vital instrument for nurturing economic growth. No economy can function with out finance and the banks provide it. They work as reservoirs of `saving’ of the community and also lenders or banking business is properly regulated so that the interest of the depositors, borrowers and the nation’s economy can be well protected. Most of the commercial banks were established in India on the British pattern in the being of the 19th century. The peculiarly of the Indian commercial banking is that the banks were started, funded and managed buy industrialists and business houses to enable them get adequate finance their business or industries. The primary objective of any commercial bank is to earn profit. A profitable bank collects money from the depositors and let somebody use it to trade industry and exchange. The difference between the lending rate and the borrowing rate is the profits. The interest rates governed by the reserve Bank of India’s directions. A bank is usually thought of as reliable agency with which money is deposited. The modern commercial Bank renders many services.
[Venkatesh. J, Balasubramanian. M. Operation Of Commercial Banking System In Indian Foreign Exchange Economy. Life Sci J 2013;10(1):2909-2913] (ISSN:1097-8135). http://www.lifesciencesite.com. 3
Key Words: Exchange rate, commercial, lending, international, shipment.