Retail banking , also known as consumer banking or personal banking , is the provision of services by a bank to the general public , rather than to companies, corporations or other banks, which are often described as wholesale banking (corporate banking).
16-397: Banking services which are regarded as retail include provision of savings and transactional accounts , mortgages , personal loans , debit cards , and credit cards . Retail banking is also distinguished from investment banking or commercial banking . It may also refer to a division or department of a bank which deals with individual customers. In the U.S., the term commercial bank
32-411: A balance beyond ₹2000. They had to give a notice of three days to the bank to be able to withdraw their money. The banks also enjoyed the freedom to fix the interest rate on deposits on the lowest credit balance of any one day of each month. Banks found innovative ways of adding to their income from savings accounts. For every passbook, which was a essential physical book that the customers update to keep
48-445: A government guarantee for at least a portion of the account balance. There are many types of savings accounts, often serving particular purposes. These may include accounts for young savers, accounts for retirees, Christmas club accounts, investment accounts, and money market accounts . Some savings accounts also have other special requirements, such as a minimum initial deposit, deposits made regularly, and notices of withdrawal. In
64-580: A record of all account transactions, the customers were asked to pay 25 paise . It is now usually given free of cost. For some time, the rate of interest on the balance in the savings account in Indian banks was regulated by the Reserve Bank of India . However, the bank can now keep any rate of interest they deem fit. Banks have to follow the RBI's know your customer guidelines to allow an individual to open
80-434: A rupee. After the transition from a non-decimal currency to a decimal currency , the paisa equaled 1 ⁄ 100 of a rupee and was known as a naya paisa ("new paisa") for a few years to distinguish it from the old paisa(pice) that was 1 ⁄ 64 of a rupee. In Hindi , Bengali , Afghan Persian , Urdu , Nepali and other languages, the word paisa often means money or cash. Medieval trade routes that spanned
96-563: A savings account. Almost every bank deposit in India is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), to a maximum of ₹5,00,000 or their deposit amount, whichever is lower. Paisa Paisa (also transliterated as pice , pesa , poysha , poisha and baisa ) is a monetary unit in several countries. The word is also a generalised idiom for money and wealth. In India , Nepal , and Pakistan ,
112-403: A type of savings account with higher interest than normal savings accounts. These accounts typically earn 10 times more in interest than a normal savings account. HYSAs can be a good option for short-term investing. Savings accounts are very popular in India, and almost 80% of the population have one, with many having multiple savings accounts. They were not popular among the common man until
128-580: Is used for a normal bank to distinguish it from an investment bank . After the Great Depression , the Glass–Steagall Act restricted normal banks to banking activities, and investment banks to capital market activities. That distinction was repealed in the 1990s. Commercial bank can also refer to a bank or a division of a bank that deals mostly with deposits and loans from corporations or large businesses, as opposed to individual members of
144-618: The Arabian Sea between India, the Arab regions and East Africa spread the usage of Indian subcontinent and Arabic currency terms across these areas. The word pesa as a reference to money in East African languages such as Swahili dates from that period. An example of this usage is the older day Kenyan mobile-phone-based money transfer service M-Pesa (which stands for "mobile pesa" or " mobile money "). This article about
160-526: The United States , Sec. 204.2(d)(1) of Regulation D (FRB) previously limited withdrawals from savings accounts to six transfers or withdrawals per month, a limitation which was removed in April 2020, though some banks continue to impose a limit voluntarily as of 2021. There is no limit to the number of deposits into the account. Violations of the regulation may result in a service charge or may result in
176-469: The paisa currently equals 1 ⁄ 100 of a rupee . In Bangladesh , the poysha equals 1 ⁄ 100 of a Bangladeshi taka . In Oman , the baisa equals 1 ⁄ 1000 of an Omani rial . The word paisa is from the Sanskrit term padāṁśa ( पदांश , basic unit), meaning 'quarter part base', from pada ( पद ) "foot or quarter or base" and aṁśa ( अंश ) "part or unit". The pesa
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#1732797159535192-416: The 1920s. Savings accounts did not exist at most banks in India for a lot of time. People relied primarily on fixed deposits for preserving their savings. Canara Bank (earlier Canara Banking Corporation Limited) introduced the concept of a savings account in 1920, with a set of very rigid rules. If a customer wanted to, he could deposit a minimum of ₹1, and a maximum of ₹1000. They were not allowed to carry
208-500: The account being changed to a checking account. Regulation D sets smaller reserve requirements for savings account balances. In addition, customers can plan withdrawals to avoid fees and earn interest, which contributes to more stable savings account balances on which banks can lend. A savings account linked to a checking account at the same financial institution can help avoid fees due to overdrafts and reduce banking costs. High yield savings accounts, sometimes abbreviated to HYSA, are
224-634: The inability to be overdrawn. Traditionally, transactions on savings accounts were widely recorded in a passbook , and were sometimes called passbook savings accounts , and bank statements were not provided; however, currently such transactions are commonly recorded electronically and accessible online. People deposit funds in savings account for a variety of reasons, including a safe place to hold their cash. Savings accounts normally pay interest as well: almost all of them accrue compound interest over time. Several countries require savings accounts to be protected by deposit insurance and some countries provide
240-427: The public (retail banking). Typical banking services offered by retail banks include: In some countries, such as the U.S., retail bank services also include more specialised accounts, such as: Savings account A savings account is a bank account at a retail bank . Common features include a limited number of withdrawals, a lack of cheque and linked debit card facilities, limited transfer options and
256-669: Was also in use in colonial Kenya . The colloquial term for money in Burmese , paiksan ( ပိုက်ဆံ ), is derived from the Hindi term paisa ( पैसा ). Chaulukya coins were often called "Gadhaiya Paise" (9th–10th century CE). Until the 1950s in India and Pakistan (and before 1947 in British India ), the paisa (back then spelled as pice in English) was equivalent to 3 pies , 1 ⁄ 4 of an anna , or 1 ⁄ 64 of
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