Banking

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A bank is an organisation whose principal operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to others for expenditure.

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Banking is the business of receiving, safeguarding and lending of money. Banks take deposits from people who have spare money and lend it to those who need money for business or other purposes.

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1. Getting deposits from customers 2. Lending money to borrowers 3. Transferring money from one place to another 4. Providing traveller cheques and foreign exchange 5. Renting deposit vaults (lockers)

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A recurring deposit account is one where a depositor chooses a specified amount (normally a multiple of ₹5) and deposits that amount every month for a predetermined period (ranging from 3 months to 10

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The maturity value is the amount received by the depositor at the end of the maturity period. It equals the total amount deposited plus the interest earned (compounded quarterly). Formula: Maturity Va

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I = P × n(n+1)/(2×12) × r/100 Where: I = Interest P = Monthly installment n = Number of months r = Rate of interest per annum

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MV = P × n + I Or MV = P × n + P × n(n+1)/(2×12) × r/100 Where: MV = Maturity Value P = Monthly installment n = Number of months I = Interest earned

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1 + 2 + 3 + ... + n = n(n+1)/2 For example: 1 + 2 + 3 + ... + 20 = 20(20+1)/2 = 210 This formula is crucial for calculating recurring deposit interest.