What are the functions performed by banks to support the economy ?

Question

Banks are an important part of an economy. Banks provide various facilities to people. They are considered as the backbone of economy. What the banks do support the economy ?

Answer 1

Bank is a financial institution which provides fundamental banking services such as accepting deposits and providing loans to people. Various types of banks in India  are Public Sector Banks, Private Sector Banks, Regional Rural Bank, Scheduled Bank, Non-Scheduled Bank, Commercial or Corporate Banks, Foreign Banks and so on. Other services provided by banks to their costumers includes money exchange and safe deposit boxes. In India, banks are under control of Reserve Bank Of India (RBI). Banks earn profit by charging more interest to borrowers and pay less interest to depositors on their saving accounts.
There are also non-banking institutions exist in our country which provides banking services without meeting the legal definition of banks.

Banks are the backbone of any economy as it perform various functions to support the economy such as:

-They are the safe place for the savings of customers.
-Banks lends the deposited money of customers to other people and corporations as a loans, which creates liquidity in the market and maintains the supply of money and credit.
-Banks helps in avoiding the focus of financial powers in hands of few individuals and institutions.
-They should set equal norms and conditions i.e. Interest rate, period of lending, etc. for all types of customers.
-Banks provides safety lockers to people for keeping their documents,jewelry etc. safe.