There are various meaning and definitations of the word banking across the world. The US banking System is different from The British and the Indian banking system. Yet, certain basic tenets of banking are common to all over the worls. These tenets are so fundamnetal that same would characterize almost all banking systems globally.In any economy, the importance of financilal sector in general and banking sector in particular cannot be undermined. Banking sector definitely plays a pivotal role in the overall development of an economy.The economic reforms initiated bt the government more than a decade ago have changed the landscape of several sectors of the world economy. The basic principles of banking are-
- Principle of Intermediation
- Principle of Liquidity
- Principle of Profitability
- Principle of Slovency
- Principle of Trust
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