Q1. What is ATM ? Ans:- ATM (Automatic Teller Machine) is an electronic device set up by a bank to facilitate cash withdrawals, generation of PIN and other simple transactions. This is way cheaper for a bank as compared to a human teller (employee). It has become so popular in today's world that many banks have installed other facilities like passbook printing, opening a bank account, check deposit, etc which will reduce the need to go to bank branches.
Q2. What is meant by NEFT and also write down its features ?
Ans:- NEFT means National Electronic Funds Transfer. It involves conducting transactions over the Internet.
It has the following features :-
A. The transfer takes place in batches.
B. An individual, firm or company can make use of NEFT even without having a bank account by depositing cash at a NEFT enabled bank branch.
C. NEFT cannot be used to receive foreign remittances.
D. The sender of funds has to pay some charges for NEFT.
E. The receiver of funds has to pay no charges.
Q3. What is a commercial bank ?
Ans:- A commercial bank may be defined as a company which collects money from the public in the form of deposits and lends the same to borrowers. It is an institution that provides facilities for safe keeping, lending and transfer of money. According to the Banking Regulations Act, 1949, "banking means the accepting, for the ptirpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise."