Security of Funds

The banks creates invest able funds by accepting deposits from the individual. That is, it invests such money as is not its own. Because the funds are not its own, the security of these funds is the prime important factor to be considered while investing the funds. To ensure security, the banker must see

• Investment or Advances are not made to any one individual or business or one factory.
• The Funds are not advanced for long term.
• The advances are made after procuring adequate security.
• The advances are not made against immovable properties.