What Are The Features Of Indian Banking System?

• Personal bank accounts in India

A savings bank account is the most popular form of personal bank account. These kinds of bank accounts promote saving money as the amount that you put into the account will be inaccessible for a given period of time. The rate of interest on these banks in India is roughly 4 percent. The minimum amount that can be put inside of one of these accounts to be maintained in the public sector points in 100 Indian Rupees, however, is you are planning to make frequent checkbooks then you will need your own checkbook for the account. The minimum balance to be maintained in there is 500 Rupees.

In a fixed deposit account in India, a given amount of money will be put into the bank account for a given amount of time that is arranged with the bank. The rate will depend on the interest depends on the maturity period.

• Business bank accounts in India

The current account is the most popular business account in India. It is most commonly used by both businesses large and small. With these accounts there is no limit on the amount of transactions that occur during the day, the only obvious rule is that the funds must be available in the account for the transaction to be made.

There is no interest paid by the bank, too, on the current account balance. Cash credit accounts are popular, too. These accounts work where the bank actually lends money against the security of commodities. This is essentially like a loan, and if the business that takes out the loan does not or is unable to make the repayment as agreed then the bank will have the right to take commodities and assets worth the same as the repayment.