Abank is a financial institution that deals with money. People take up different professions to make money in order to earn a living.A large part of it is spent on daily necessities, education and luxuries while the remaining part is either deposited in a bank or utilized for buying financial instruments, such as shares, debentures, insurance products and fixed deposits. For satisfying human wants, needs and in cases of emergency, a savings bank account which is secured provides the required liquidity.
For most of the educated and employed people in organized sectors such as public and private sector, educational institutions and multinational companies, opening a bank account is not a big issue since their financial position helps them fulfill all the banking rules and regulations pertaining to savings/current account. Moreover, corporate accounts exist for such employees whose eligibility norms are taken care off by the corporate organizations themselves by depositing the salaries directly in their accounts in addition to the concessions being offered by the banks in concern.
Since banks are commercial entities, they evaluate their services in terms of transaction costs and profits. IT has increased competition among the public and private sector banks in the retail banking segment. Therefore, in order to cover their transaction costs and also satisfy the directives of the Reserve Bank of India (RBI), banks prescribe certain conditions such as minimum amount of deposit for opening an account, maintenance of certain amount on quarterly basis, proof of residence and income and verification of new customers by the existing customers
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