{"id":10131,"date":"2023-07-30T19:45:25","date_gmt":"2023-07-30T14:15:25","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=10131"},"modified":"2025-03-05T09:38:45","modified_gmt":"2025-03-05T04:08:45","slug":"all-about-banking","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/","title":{"rendered":"What is Banking?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dcf48929f10\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dcf48929f10\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#Banking\" >Banking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#Major_Functions_Uses_of_Banking\" >Major Functions &amp; Uses of Banking:\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#1_Money_Storage\" >1. Money Storage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#2_Loan_Facility\" >2. Loan Facility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#3_Corporate_Finance_Management\" >3. Corporate Finance Management<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#Types_of_Banking\" >Types of Banking:\u00a0<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#Types_of_Commercial_Banks\" >Types of Commercial Banks:<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#Types_of_Banking-2\" >Types of Banking:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#Modes_of_Banking\" >Modes of Banking:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#Latest_Trends_in_Banking\" >Latest Trends in Banking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#What_is_banking\" >What is banking?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#Why_is_banking_so_important\" >Why is banking so important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#What_is_the_origin_of_banking\" >What is the origin of banking?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/all-about-banking\/#What_are_the_different_types_of_banks\" >What are the different types of banks?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Banking\"><\/span>Banking<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Banking refers to the umbrella of services provided by financial institutions, such as accepting deposits and providing loans. Banking provides essential financial services like depositing, lending, and asset protection to support the economy.<\/p>\n<p>Let&#8217;s take a deeper look into what banking is exactly, and why it&#8217;s such an important pillar of the economy.<\/p>\n<p><span style=\"color: #111111; font-family: Roboto, Arial, sans-serif; font-size: 1.6315em; font-weight: bold;\">What is Banking?<\/span><\/p>\n<p>The primary purpose of banking is to facilitate the movement of money in the economy by helping people and businesses store, invest and borrow money. The industry includes financial institutions like banks, credit unions and NBFCs.<\/p>\n<p>Banks and other financial institutions play a very important role in the economy. There are two kinds of banks: retail and investment banks. Let&#8217;s discuss the Indian banking system, its types, functions and how banking helps businesses.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Major_Functions_Uses_of_Banking\"><\/span><b>Major Functions &amp; Uses of Banking:\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Money_Storage\"><\/span><span style=\"font-weight: 400;\">1. Money Storage<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">Banks provide <\/span>savings accounts<span style=\"font-weight: 400;\"> that give the account owner interest on their deposit so that the money does not sit idly<\/span><\/li>\n<li>Businesses store money in <a href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-current-account\/\">current accounts<\/a> which are special accounts designed for the everyday financial needs of a business<\/li>\n<\/ul>\n<p>Read more: <a href=\"https:\/\/razorpay.com\/learn\/business-banking\/types-of-current-accounts\/\">Types of Current Account<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Loan_Facility\"><\/span><span style=\"font-weight: 400;\">2. Loan Facility<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">Banks also give out loans to both individuals and businesses. <\/span><\/li>\n<li><span style=\"font-weight: 400;\">These loans are to be paid back over a period of time with a certain amount of interest added.<\/span><\/li>\n<li>People take loans for a number of reasons: to buy a new asset like a car, or house or for education.<\/li>\n<li>Businesses take loans to meet liquidity needs, fund daily operations, execute payroll etc.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_Corporate_Finance_Management\"><\/span><span style=\"font-weight: 400;\">3. Corporate Finance Management<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">When businesses reach a mature stage and are looking to merge\/acquire other organisations that might serve their long-term revenue prospects, they reach out to specialised banks known as <a href=\"https:\/\/razorpay.com\/blog\/business-banking\/investment-banks\/#:~:text=Investment%20banking%20is%20a%20branch,investment%20banks%20provide%20to%20businesses.\">investment banks<\/a> to help with complex financial transactions like mergers and acquisitions or <a href=\"https:\/\/razorpay.com\/blog\/business-banking\/ipo-all-about-initial-public-offering\/\">IPOs<\/a>.<\/span><\/li>\n<li>Generally, these banks do not offer retail or consumer banking services and only specialize in <a href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-corporate-banking\/\">corporate finances<\/a>. They are intermediaries in the transaction and work with large corporations, hedge funds, and other financial institutions.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Banking\"><\/span><b>Types of Banking:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The banking system in India is divided into the following branches:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-13207 aligncenter\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2023\/06\/types-of-bank.png\" alt=\"types of bank \" width=\"628\" height=\"353\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/06\/types-of-bank.png 628w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/06\/types-of-bank-300x169.png 300w\" sizes=\"auto, (max-width: 628px) 100vw, 628px\" \/><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Types_of_Commercial_Banks\"><\/span>Types of Commercial Banks:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<table>\n<tbody>\n<tr>\n<td><b>Public Sector Banks<\/b><\/td>\n<td><b>Private Sector Banks<\/b><\/td>\n<td><b>Foreign Banks<\/b><\/td>\n<td><b>Regional Rural Banks<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">The major stakeholder of these banks is government entities such as<\/span><a href=\"https:\/\/finmin.nic.in\/\" rel=\"nofollow noopener\" target=\"_blank\"> the\u00a0<span style=\"font-weight: 400;\">Ministry of finance. <\/span><\/a><span style=\"font-weight: 400;\">\u00a0These banks prioritise social welfare by providing access to financial services for people, micro &amp; small-sized companies.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">These banks are governed by private firms or individuals and are for-profit.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">These banks have headquarters in other countries and have Indian branches. These banks bring in modern banking technology &amp; accelerate competition driving innovation across the industry.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">These government of India-owned banks operate in rural areas to provide basic financial services such as pensions &amp;<\/span><a href=\"https:\/\/nrega.nic.in\/MGNREGA_new\/Nrega_home.aspx\" rel=\"nofollow noopener\" target=\"_blank\"> <span style=\"font-weight: 400;\">MGNREGA<\/span><\/a><span style=\"font-weight: 400;\"> disbursal to the people.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\"><strong>Example<\/strong>: SBI, Canara Bank, Bank of Baroda etc<\/span><\/td>\n<td><span style=\"font-weight: 400;\"><strong> Example<\/strong>: Axis bank, ICICI bank, HDFC bank etc.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\"><strong>Example<\/strong>: Barclays, Citi bank etc.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\"><strong>Example<\/strong>: Andhra Pradesh Grameena Vikas Bank, J&amp;K Grameen Bank etc.\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Banking-2\"><\/span>Types of Banking:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Based on the services &amp; needs of individuals and businesses, we have come up with the below table to help you understand the types of banking &amp; services offered by each type.<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Retail Banking<\/b><\/td>\n<td><a href=\"https:\/\/razorpay.com\/blog\/business-banking\/what-is-corporate-banking\/\"><b>Corporate Banking<\/b><\/a><\/td>\n<td><b>Central Banking\u00a0<\/b><\/td>\n<td><a href=\"https:\/\/razorpay.com\/blog\/business-banking\/cooperative-banking\/\"><b>Cooperative Banking<\/b><\/a><b>\u00a0<\/b><\/td>\n<\/tr>\n<tr>\n<td>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These are banks that service individual customers.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They offer loans, investment options, and even Demat accounts for stock trading.<\/span><\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These banks specialize in the complex financial needs of large institutions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Services include current accounts, escrow accounts, &amp; credit facilities.<\/span><\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These banks are the central regulatory authority of all banks in a country.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In India, banks are regulated by the <\/span><a href=\"https:\/\/www.rbi.org.in\/\" rel=\"nofollow noopener\" target=\"_blank\"><b>Reserve Bank of India<\/b><\/a><\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Managed by an elected managing committee is referred to as a cooperative bank.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It operates on a non-profit no-loss basis and mostly supports self-employed people, small company owners, and others in metropolitan areas.\u00a0<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\"><strong>Service offered<\/strong>: Savings account, credit cards, home loans etc<\/span><\/td>\n<td><span style=\"font-weight: 400;\"><strong>Service offered<\/strong>: current account, escrow account, corporate credit card etc<\/span><\/td>\n<td><span style=\"font-weight: 400;\"><strong>Service offered<\/strong>: regulation &amp; compliance, public debt &amp; currency management\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\"><strong>Service offered: <\/strong><\/span><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/learn\/what-is-atm\/\">ATM<\/a> services, insurance etc.\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Modes_of_Banking\"><\/span>Modes of Banking:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Banking today exists in a myriad of forms, thanks to the advancement of technology.<\/p>\n<table>\n<tbody>\n<tr>\n<td><a href=\"https:\/\/razorpay.com\/blog\/mobile-banking-how-does-it-help-businesses\/\"><span style=\"font-weight: 400;\"><strong>Mobile Banking<\/strong><\/span><\/a><\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Banks today have a mobile app where account holders can make transactions, check balances, open deposits and more.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Most people today prefer a mobile app over a physical bank branch for basic functions.\u00a0<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/razorpay.com\/blog\/online-banking-all-you-need-to-know\/\"><span style=\"font-weight: 400;\"><strong>Internet Banking<\/strong><\/span><\/a><\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Banks today also have a website where account holders can log in and carry out all the functions that previously required a visit to a bank branch.<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td><strong><a href=\"https:\/\/razorpay.com\/blog\/business-banking\/digital-banking-in-india\/\">Digital Banking<\/a><\/strong><\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Digital banking is a service offered by brick-and-mortar banks, to make transactions easier for their customers.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Digital banking has become so popular that most people now prefer making payments through <a href=\"https:\/\/razorpay.com\/learn\/neft\/\">NEFT<\/a> or IMPS, or the newly launched UPI.\u00a0<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td><strong><a href=\"https:\/\/razorpay.com\/blog\/what-is-a-neobank\/\">Neobanking<\/a><\/strong><\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Neobanks operate entirely online with no physical presence at all.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Neobanks offer flexibility and ease of use that legacy traditional banks typically do not, or cannot offer.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Legal regulations have not yet caught up to these new-age banks, the RBI \u201cis cognizant of the benefits that neobanks bring to the table\u201d.\u00a0<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Latest_Trends_in_Banking\"><\/span>Latest Trends in Banking<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-13211 aligncenter\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2023\/06\/banking-trends-1024x601.webp\" alt=\"banking top trends \" width=\"770\" height=\"452\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/06\/banking-trends-1024x601.webp 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/06\/banking-trends-300x176.webp 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/06\/banking-trends-768x451.webp 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/06\/banking-trends.webp 1200w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/p>\n<p>Banking has witnessed the biggest transformation in the past few decades. With the rise of digital banking, neo-banks, digital currencies and more, the world of finance has been at the forefront of change.<\/p>\n<p>Banking solutions like RazorpayX and Jupiter are helping make personal and business finances easier. Before fintechs, traditional banks did not offer ease of use or integrated solutions to all finance issues that businesses and individuals faced.<\/p>\n<p>With fintechs like RazorpayX, businesses can supercharge every aspect of their financial operations.<\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Save time, reduce manual effort and eliminate errors with instant payouts<\/span><\/li>\n<li><span style=\"font-weight: 400;\">One single, powerful dashboard for all your money management needs<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Intelligent <a href=\"https:\/\/razorpay.com\/blog\/what-is-invoice\/\">invoice<\/a> generation for vendor payments\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Smooth integrations with all major accounting platforms<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">And more where that came from. Your business is in the future \u2013 it\u2019s up to you to ensure your banking is, too.<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/current-accounts\/?r=blog_cta_business_banking_all_about_banking&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Join RazorpayX!<\/a><\/div>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div id=\"rank-math-rich-snippet-wrapper\"><div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-1\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_banking\"><\/span>What is banking? <span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Banking is the industry that allows people and businesses to deposit, borrow and transfer money. The banking industry has been an important part of the economy ever since humans started using money. <\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-2\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Why_is_banking_so_important\"><\/span>Why is banking so important?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Banks play a very important role in the economy. They allow money to flow through the economy by providing credit, investment facilities and financial infrastructure. <\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-3\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_the_origin_of_banking\"><\/span>What is the origin of banking? <span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Banking originated in the ancient world out of a need to keep extra money or gold safe. People also needed loans to grow crops or grain when times where hard. The basic functions of banking have more or less remained the same in modern times.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-4\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_are_the_different_types_of_banks\"><\/span>What are the different types of banks?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Commercial or retail banks and Corporate banks are the two main divisions of banking. There are also digital banks and neobanks. <\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Banking Banking refers to the umbrella of services provided by financial institutions, such as accepting deposits and providing loans. Banking provides essential financial services like depositing, lending, and asset protection to support the economy. Let&#8217;s take a deeper look into what banking is exactly, and why it&#8217;s such an important pillar of the economy. What<\/p>\n","protected":false},"author":106,"featured_media":10966,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[290],"class_list":{"0":"post-10131","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-banking","8":"tag-banking"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=10131"}],"version-history":[{"count":4,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10131\/revisions"}],"predecessor-version":[{"id":21241,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10131\/revisions\/21241"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/10966"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=10131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=10131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=10131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}