What is a bank branch?
There are many types of banks in India, including State Bank of India, Bank of Baroda, Cooperative Bank, IDBI Bank, ICICI Bank, and HDFC Bank. However, these banks have reached every city. What exactly does “reached into every city” or what is a bank branch mean? While the bank’s head office is in one place, the branches of the same bank are in many places in the country.
What is a bank branch
Ex. Suppose XYZ Bank is established in Mumbai. But it is seen in different places like Satara, Pune, Delhi, Kolkata. At that time, XYZ Bank has its head office in Mumbai and its branches are spread in various places.
If a person wants to deposit money in XYZ Bank, he does not need to come to Mumbai and deposit the money in that bank, he can deposit money by going to any branch of XYZ Bank available at his convenience or nearby.
As the bank branches are available at various places, it becomes convenient for the people and the business of the bank also increases. In short, having a bank branch is beneficial for the bank and beneficial for the customers.
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If a person has an account with the State Bank of India, then the branch of the State Bank of India in which the person has opened the account has to be mentioned at various places. So everyone knows the bank name but the branch name is also very important.
What is a Branch Code?
A bank is a financial institution that opens various types of branches to manage its business. Each of these branches is given a specific branch code. This branch code is assigned to each branch according to their location. Branch code is important because it is important for the bank to differentiate or specifically identify its different branches.
Bank Branch Code in India
India has an 11-digit alphanumeric code as the IFC code. This is called the Indian Financial System Code (IFSC Code). This IFSC code is used in various places. IFSC code helps to identify which bank, and which branch. The first four digits of this code indicate which bank it is. The next five digits are zeros. The last six digits after that indicate the branch code of the concerned bank. This code is mostly used to transfer money from one bank to another bank.
How Bank Branches Work
A bank branch is only one face of the bank to the customer. It is not always possible for the customer to visit the head office of the bank. In such cases, the customer can go to any branch available near his home and carry out the transaction at his convenience.
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The most important function of a bank branch is to guide the customers to open the maximum account in their branch or to maximize the business of the bank. So it is seen that the bank is increasing its expansion in the places where there are branches of the bank.
Bank branches perform many types of transactions including accepting deposits, withdrawing money, transferring money, opening new accounts or providing locker facilities, foreign exchange, or providing notary services. All the branches of the bank are controlled by the head office of the bank.
Many bank transactions are now done online or through mobile banking, but some people still prefer to do so in person. Bank branches are a very convenient option for such people. A customer can personally check his account information by visiting the bank branches. Can seek expert advice on financial products or services.
Therefore, having a bank branch is very important even today. Some people open an account in a bank considering the number of branches of the bank, and the extent of the bank’s expansion.
Where are the bank branches located?
Nowadays many banks have many branches available or some banks may even have few branches. These branches can be established anywhere in a building or inside retail stores. However, every bank needs to get permission from RBI to open a bank branch. Any bank while opening its branch has to follow all the rules of RBI and open a new branch.
Advantages of having a bank branch
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Convenient transactions –
If we go to see the biggest benefit, people’s transactions become convenient. If a person wants to open an account then he does not need to go to the head office and open an account there, he can open his account by going to a branch near his home where a bank branch is available.
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Help increase confidence in the bank
If the bank provides a branch near to the people’s home, the person or the customer can go and get information about his account whenever he wants. At the same time, he can take different types of advice from the bank employees. This helps to increase the trust in the bank in the minds of the people.
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Security –
People do not have to travel long distances to deposit money as bank branches are available nearby. This reduces the risk of money theft and provides security to customers.
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Help to increase the business of the bank
As the branches of the banks are closer to these people, many people are willing to open an account in the bank. They can do convenient transactions, get security, and also build trust in the bank. This makes more people enthusiastic to come to the bank and open an account. At such times the bank benefits and helps to maximize the bank’s transactions.
