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BANK DEPOSITS AND KINDSBANK DEPOSITS AND KINDS

THEREOFTHEREOF

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THE WORD BANK AND ITS DEFINITIONTHE WORD BANK AND ITS DEFINITION

ItIt hashas notnot soso far far beenbeen decideddecided asas toto howhow thethe wordword BANKBANKoriginatedoriginated.. TheThe mostmost commoncommon opinionopinion inin thisthis regardregard isis thatthat thethewordword BANKBANK hashas beenbeen derivedderived fromfrom thethe GermanGerman wordword BACKBACKwhichwhich meansmeans JointJoint StockStock FundFund.. Later Later on,on, whenwhen thethe GermansGermans

OccupiedOccupied major major partpart of of Italy,Italy, thethe wordword BACKBACK waswas ItalianizedItalianizedintointo BANKBANK..

AsAs defineddefined inin thethe NegotiableNegotiable InstrumentInstrument ActAct 18811881,, Banker Banker meansmeans aa personperson transactingtransacting thethe businessbusiness of of accepting,accepting, for for thethepurposepurpose of of lendinglending or or investment,investment, of of depositsdeposits of of moneymoney fromfrompublic,public, repayablerepayable onon demanddemand or or otherwiseotherwise andand withdrawablewithdrawable bybycheque,cheque, draft,draft, order order or or otherwiseotherwise..

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NATURE OF BANK DEPOSITSNATURE OF BANK DEPOSITS

BankBank DepositsDeposits cancan broadlybroadly classifiedclassified intointo followingfollowing threethree

categoriescategories whichwhich isis mainlymainly basedbased onon thethe durationduration andand purposepurpose

for for whichwhich thethe depositsdeposits areare toto bebe keptkept atat thethe BankBank beforebefore theythey

cancan bebe withdrawnwithdrawn byby thethe depositorsdepositors..1.1. Current DepositsCurrent Deposits

2.2. Savings DepositsSavings Deposits

3.3. Fixed or Term DepositsFixed or Term Deposits

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CURRENT DEPOSITSCURRENT DEPOSITS

TheseThese kindkind of of depositsdeposits areare payablepayable toto thethe customer customer whenever whenever theytheyareare demandeddemanded..

SuchSuch depositsdeposits bear bear thethe obligationobligation of of banker banker of of payingpaying allall chequeschequesetcetc.. drawndrawn againstagainst toto thethe extentextent of of thethe balancebalance inin thethe accountaccount..

BecauseBecause of of nature,nature, thesethese depositsdeposits areare treatedtreated asas currentcurrent liabilitiesliabilities bybythethe BanksBanks..

InIn UBLUBL suchsuch accountsaccounts havehave beenbeen renamedrenamed asas UBLUBL BusinessBusiness Partner Partner AccountAccount toto createcreate anan understandingunderstanding amongamong thethe customerscustomers thatthat theytheyareare treatedtreated asas PartnersPartners byby thethe BankBank insteadinstead of of customerscustomers inin lightlight of of thethe sloganslogan of of thethe bank,bank, ii..ee.. WhereWhere You You ComeCome First,First, .. VariousVarious waiverswaiversof of Bank¶sBank¶s commissioncommission havehave beenbeen offeredoffered onon suchsuch accountsaccounts subjectsubjecttoto maintainingmaintaining of of aa specifiedspecified balancebalance..

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CURRENT DEPOSITSCURRENT DEPOSITS

Moreover,Moreover, duringduring thethe currentcurrent monthmonth of of MayMay;; 20102010,, aa newnew

accountaccount titledtitled asas UBLUBL BusinessBusiness Partner Partner PlusPlus accountaccount hashas beenbeen

launchedlaunched withwith specialspecial featuresfeatures asas regardregard toto multiplemultiple benefitsbenefits inin

thethe shapeshape of of waiverswaivers onon variousvarious productsproducts offeredoffered byby thethe BankBank..

InIn thethe year year 20062006,, UBLUBL hashas alsoalso launchedlaunched BasicBasic BankingBanking

AccountAccount (UBL(UBL BBA)BBA) whichwhich speciallyspecially aimsaims toto provideprovide BankingBanking

facilitiesfacilities toto lowlow incomeincome groupsgroups withwith nono feefee for for maintainingmaintaining thethe

accountaccount.. However However transactionstransactions allowedallowed inin thesethese accountsaccounts areare

limitedlimited..

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PLS SAVING ACCOUNTSPLS SAVING ACCOUNTS

WhenWhen commercialcommercial BanksBanks foundfound thatthat itit waswas aa payingpaying business,business,

theythey alsoalso startedstarted acceptingaccepting savingssavings depositsdeposits.. UptoUpto recentrecent past,past,

thethe depositor depositor waswas notnot allowedallowed toto withdrawwithdraw moremore thanthan aa fixedfixed

amountamount fromfrom depositsdeposits inin aa monthmonth;; andand if if thethe depositor depositor desireddesiredtoto withdrawwithdraw aa largelarge sum,sum, hehe hadhad toto givegive aa prior prior noticenotice of of 1010--1515

daysdays.. ThusThus thethe BankersBankers diddid notnot needneed largelarge sumsum inin reservereserve toto

meetmeet thethe demanddemand onon themthem andand asas suchsuch somesome moneymoney waswas

alwaysalways availableavailable for for stillstill moremore expansionexpansion of of thethe Banker¶sBanker¶s

businessbusiness..

yy InIn order order toto popularizepopularize thisthis scheme,scheme, thethe StateState BankBank of of PakistanPakistan

hashas allowedallowed thethe SavingsSavings SchemeScheme for for schoolschool andand collegecollege

studentsstudents.. TheThe purposepurpose of of thesethese accountsaccounts isis toto inculcateinculcate thethe

habithabit of of savingssavings..

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FIXED OR TERM DEPOSITSFIXED OR TERM DEPOSITS

TheseThese depositsdeposits areare placedplaced withwith thethe bankbank for for aa specifiedspecified periodperiod

inin accordanceaccordance withwith thethe agreementagreement mademade betweenbetween thethe customer customer 

andand thethe banker banker andand asas suchsuch areare namednamed asas FixedFixed or or TermTerm

DepositsDeposits.. TheThe profitprofit paidpaid onon suchsuch depositsdeposits variesvaries withwith thethe durationduration for for 

whichwhich thesethese areare placedplaced withwith thethe bankbank.. TheThe frequencyfrequency of of profitprofit

payablepayable isis atat thethe discretiondiscretion of of thethe customer customer whichwhich maymay bebe onon

monthlymonthly basisbasis or or atat thethe timetime of of maturitymaturity of of thethe depositdeposit..

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TheThe aboveabove expositionexposition coverscovers onlyonly aa veryvery limitedlimited aspectaspect of of 

bankingbanking.. SectionSection 77 of of thethe BankingBanking CompaniesCompanies OrdinanceOrdinance 19621962

authorizesauthorizes bankingbanking companiescompanies toto engageengage inin thethe followingfollowing

formsforms of of businessbusiness asas wellwell..

Borrowing and lending of moneyBorrowing and lending of money

Discounting Bills of Exchange and other Negotiable Instruments.Discounting Bills of Exchange and other Negotiable Instruments. Collecting Negotiable Instruments on behalf of the customers.Collecting Negotiable Instruments on behalf of the customers.

Buying and selling Bullion and Foreign Exchange.Buying and selling Bullion and Foreign Exchange.

Granting of Letter of Credit to the customers.Granting of Letter of Credit to the customers.

Receiving valuables for safe custody.Receiving valuables for safe custody.

Underwriting and dealing in stocks, shares, debentures and other securitiesUnderwriting and dealing in stocks, shares, debentures and other securities

on behalf of the customers and others.on behalf of the customers and others.

Acting as agent to his customer; undertaking and executing trust.Acting as agent to his customer; undertaking and executing trust.

Carrying on guarantees and indemnities position.Carrying on guarantees and indemnities position.

Dealing with any property that may come to it as security in satisfaction of Dealing with any property that may come to it as security in satisfaction of 

its outstanding claims.its outstanding claims.

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Thank YouThank You