Basically there are two basic categories on the basis of functioning of MCB Bank, which are
Principal function
Auxiliary function
The principal functions are basically the core functions of the bank that is their lifeblood of bank I-e.
Acceptance of deposits
Investments
Discounting of bills
There are basically two types of deposits and their nature vary due to time factor I-e
Demand deposits
Time deposits
The demand deposits have no legal restriction on drawing of the deposited amount and the cash is readily available on demand without any conditions
On the contrary the time deposits are deposits for a particular period of time and cannot be easily withdrawn on demand and if the amount is with drawn certain penalty is levied on withdrawal before time.
Demand deposits are further classified into two categories I-e
Current deposits
Saving deposits
The current deposits are non-interest bearing deposits and earn the most for banks as there is no cost for the banks but the depositor can claim no interest whatsoever.
The saving deposits are the interest bearing deposits and although there are no such restrictions but it is mostly preferred for saving and salaried class and similar class clients deposit in this category to earn interest so no regular withdrawal takes place in this type of deposits
Time deposits are further categorized into two categories that are
Notice time deposits
Fixed term deposits
Principal function
Auxiliary function
The principal functions are basically the core functions of the bank that is their lifeblood of bank I-e.
Acceptance of deposits
Investments
Discounting of bills
There are basically two types of deposits and their nature vary due to time factor I-e
Demand deposits
Time deposits
The demand deposits have no legal restriction on drawing of the deposited amount and the cash is readily available on demand without any conditions
On the contrary the time deposits are deposits for a particular period of time and cannot be easily withdrawn on demand and if the amount is with drawn certain penalty is levied on withdrawal before time.
Demand deposits are further classified into two categories I-e
Current deposits
Saving deposits
The current deposits are non-interest bearing deposits and earn the most for banks as there is no cost for the banks but the depositor can claim no interest whatsoever.
The saving deposits are the interest bearing deposits and although there are no such restrictions but it is mostly preferred for saving and salaried class and similar class clients deposit in this category to earn interest so no regular withdrawal takes place in this type of deposits
Time deposits are further categorized into two categories that are
Notice time deposits
Fixed term deposits