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How does a bank How does a bank make money? || Bank || Bank Make Money?

How does a bank make money?

ব্যাংক কিভাবে অর্থ উপার্জন করে?


    How does a bank make money?

    In today's world almost everyone has at least one bank account. Bank accounts are very important to us because our money is safe there. We deposit our money and the bank returns it with interest.

    This means that we get more money than we paid, but have you ever wondered how the banks make money when they give us more money? With this, how does the bank provide benefits to the employees starting from their salaries? How does a bank make money?

    How does a bank make money?

    Community banks make money primarily from the interest they lend to residents and small businesses. The money comes from depositor funds kept in different types of bank accounts. Although many large banks derive most of their income from interest, they receive a larger share of their revenue from non-interest sources than community banks.

    Larger banks also often consist of different departments that focus on different types of customers and services. For example, their commercial banking or retail banking departments may offer traditional banking services, such as deposit accounts (such as checks or savings) and personal and business loans.

    However, their investment banking departments can help large corporate and government clients raise money, manage their finances, and invest in bank funds.

    But is this enough? You may not have an idea about this, but there are many more ways to earn money from a bank. So let's give some information about the banking process today.

    SMS charge-

    How many SMSes do you receive from your bank? Did you know that even for this SMS, the bank charges quarterly from its customers? The RBI guidelines say that banks should provide this service free of cost, but many banks charge up to Rs 25 per month (excluding GST) per SMS from customers' bank accounts. Axis Bank's SMS charges are also the same

    Fund Transfer Charge-

    Different transaction limits have been set for services like NEFT, RTGS, IMPS. Simultaneous transfer of money at IMPS can take anywhere from Rs 5 to Rs 50 This will be a fee for one transaction only which means if you do 5 transactions in a month then 250 plus GST may be charged. Similar charges are levied on RTGS, NEFT. The NEFT chart charges only 25 paise for transactions below 10000.

    Debit / ATM Card Charges -

    You must know that if you withdraw money more than 3 times from a non-bank ATM, the bank also charges a separate charge for it, the bank may charge you 25 rupees per transaction (excluding GST). Not only that, there is a maintenance charge for the card, which is deducted from your account up to 100-500 rupees once a year. If you have to make a new card, you have to pay for it.

    How does a bank make money?


    E-Commerce Banking Charge-

    These are the most common nowadays and banks charge e-commerce charges These charges range from Rs. 20 to Rs. 100 per transaction These are not limited to e-commerce websites, banks also charge for booking tickets through IRCTC, using payment apps, UPI payments, and many other services like e-commerce.

    Transaction Charge-

    Now you must have noticed that banks charge for ATM withdrawals and money transfers and e-commerce, along with other transaction charges, so let me tell you that this card is also charged for swiping.

    • There is an additional charge of 2% if you swipe a credit card.
    • Similarly, even if you pay by debit card, additional charges are levied.
    • It also charges if you go to your bank to deposit cash or if you go to withdraw cash from your bank.
    • If your transaction limit is high, money will be deducted from your account every month.
    • These charges are levied on all customers and retailers.

    PIN reset and card rejection-

    This is not about resetting net banking PINs, it is about resetting debit or credit card PINs. Many private banks, such as HDFC, charge extra for resetting customers' PINs. Similarly, if a cardholder has to cancel his debit or credit card completely, he gets a separate charge.

    What is a commercial bank?

    A commercial bank where most people go to do their daily banking. Commercial banks give businesses and individuals a place to save money while they have access to credit and loans. Again, since one of the reasons a bank operates is to make money, most financial institutions today focus on profiting from the customers they serve.

    Definition of Commercial Bank

    According to Bancrete, a commercial bank is seen as a "for-profit financial institution that accepts deposits, lends and provides other financial services to its customers."

    A commercial bank basically means money to its customers, who can withdraw their funds at any time, even on short notice. For that reason, commercial banks offer short-term credit, including support for real, concrete securities.

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