GLOBALIZATION

The globalization of banking in particular has paralleled
the globalization of the financial system and growth in
multinational corporation in general.To some extent banking
has always been global.The internationalization of banking
in the post war world has resulted form the push factor
of the following customer.This explanation of the internationalization
of banking fits particularly well with the growth of US banking
overseas.Restriction on interstate impended the growth of bank
and restriction on their funding capacities drove US banks abroad.
The by-product of this expansion was the creation of the Eurodollar
market in the London the most liberally regulated environment at
that time.The pull factor was provided by expansion of US banks
such as Citibank and Bank of America expanded into Europe
with view to holding on to their prime customer.

FINANCIAL INNOVATION

Financial innovation is much overused term and used to
describe any change in the scale scope and delivery of
financial services.As Gowland(1991)has explained much
of what is thought to be an innovation is the extent ion or
limitation of financial product that already existed in another
country.An example is the introduction of variable rate
mortgages into the USA when fixed rates were in the UK,
where variable rate still remains the dominant types of
mortgage.

It is generally recognized that three common but
not mutually exclusive forces have spurred on financial
innovation.They are1.Instability of the financial environment
2.Regulation3.Development of technology in the financial
sector.

DEREGULATION

The deregulation of financial markets and banks in particularhas been a consistent force in the development of the financial

sector of advanced economics during the last quarter of the

20Th century.Deregulation of financial markets and banks has

been directed towards their competitive actions, but this

has been accompanied by increased regulation over the soundness

of their financial position.Consequently,there is a dichotomy as

far as the operation of banks are concerned;greater commercial

freedom (i.e more regulation)

Deregulation consist of two strands removal of impositions

of government bodies such as building societies.The process of

deregulation across the developed economics has come in three

phases but not always in the same sequences.The first phase

of deregulation began with lifting of quantitative control on bank

ass est and ceiling on interest rates on deposits.

BANKING

Banking is not what it used to be.In an important study ,Boyd and Gertler(1994)

pose the question,'Are bank dead?or are the reports grossly exagerrated?

They conclude not dead nor even declining, but evoling.The conventional monotask

of taking in deposits and making loans remain in different guises but it is not

only or even the main activity of modern bank.The modern bank is multifaceted

financial institution, staffed by multi-skilled personnel,conducting multitask

operation.Banks have had to evolve in face of increased competition both

from within the banking sector and without,from the non bank financial

sector.In response to competition banks have had to restructure,diversify,

improve efficiency and absorb greater risk.



Bank across the developed economies have faced three consistent

trends that have served to alter the activity and strategy of banking.

They are 1.deregelation,2.financial innovation and,3.globalization.The

development of the Eurodollar market arose out of a desire to circumvent

regulation in the USA.The term Eurodollar is genera tic terms for deposits

and loan dominated in a currency other than that of the host country.

Cash book

A cash book is an important subsidiary book.The cash book
records transaction concerned with cash.The objective of cash
book is to keep a daily record of transaction.When a business
is large , a number of transaction relating to cash are also
usually large.Since cash transaction from the major portion
of the transaction of a business.It is necessary to keep
a separate book for a cash transaction.

Its types are as follows:
~SIMPLE COLUMN CASH BOOK.
~ DOUBLE COLUMN CASH BOOK.
~ TRIPP LE COLUMN CASH BOOK.

CHEQUE

Cheque is a written order to the bank made bye the
depositor to pay a certain sum of money to the specified
person/party on the cheque .It is always drawn upon a
specified banker and and the amount specified on it is
always payable on demand of cheque.A cheque has all
the feature of bill of exchange and some more besides.
therefore all cheque are bill of exchanges, but not all of
exchanges,but not all of exchanges are cheque.The essential
factor of cheque can presented as follows:
~ It is an instrument in written.
~ It is an unconditional order.
~ It should be drawn on a specified banker.
~ It is always payable on demand.
~ The payee must be certain.

Concept of banking transaction

Normally every business likes to do its business activity
through the bank.They do not prefer to hold cash balance in the
safe of the company.Rather it is quite risker to keep the cash in the
business.They also need a proper control over the receipts and payement
of cash. Therefore all the cash receipts are immediately deposited
or directly deposited in the bank and all the cash payement are
done through the bank by issuing cheques.
Types of bank account:
~ Current or demand deposit account.
~ Saving deposit account.
~ Fixed deposit account.

CONCEPT OF CASH TRANSCATION

Cash is anything which is created as a meaning of exchange.

Cash takes many different forms . Coin ,currencies on hand,

gold and silver cash at bank etc are the example of cash it

also includes various form of cheque received from customer.

The key feature of cash is that it should be readily available to

pay debts or obligation.Although cash occupies a small portion

of total ass est in business organisation but it plays an important role

for smooth operation of any business organisation.