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Bank

Definition​

A Bank is a financial institution that manages accounts, transactions, and payments for individuals, businesses, and organizations. Banks play a critical role in handling deposits, facilitating payments, extending credit, and ensuring the safe transfer of funds.

Key Functions​

  • Account Management: Maintain savings, current, and corporate accounts
  • Funds Transfer: Facilitate domestic and international money transfers
  • Payment Processing: Handle cheque, electronic, and online payments
  • Loan & Credit Services: Provide financing options such as loans, overdrafts, and credit facilities
  • Deposit Handling: Accept and manage deposits with interest schemes
  • Financial Security: Ensure secure and regulated fund management

Types of Bank Accounts​

  • Savings Account: For storing personal funds and earning interest
  • Current Account: Used by businesses for high-volume transactions
  • Fixed Deposit: Time-bound deposits with higher interest returns
  • Loan Account: Tracks borrowed amounts and repayments
  • Overdraft Account: Allows withdrawals exceeding the account balance

Importance in Business​

  • Transaction Management: Streamlines receipt and payment processes
  • Cash Flow Control: Helps monitor daily, weekly, and monthly financial activity
  • Payroll Disbursement: Supports automated salary payments
  • Vendor and Customer Payments: Facilitates settlements across stakeholders
  • Audit and Compliance: Ensures proper documentation and reporting for financial governance

Bank Management in PrismERP​

PrismERP enables seamless integration and management of bank-related operations with features like:

  • Creating and managing multiple bank accounts
  • Recording and reconciling bank transactions
  • Managing cheque payments, deposits, and clearances
  • Generating bank-wise reports and statements
  • Linking banks with specific branches or cost centers
  • Handling fund transfers and inter-bank settlements
  • Cash & Bank Management: Unified dashboard for managing cash and bank operations
  • Accounts Payable & Receivable: Automated linkage to bank accounts for financial settlements
  • Fund Requisition & Transfer: Integrates bank accounts for internal transfers
  • General Ledger: Automatically reflects all bank transactions