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Finance refers to funds required to carry out production activities. Funds are needed for meeting current necessities or day to day expenses and for buying capital goods. Institutions that meet all such requirements of finance are called financial institutions. These institutions are classified into banking and non banking financial institutions. Banks are the financial institutions authorised by the government to conduct banking activity like accepting deposits, granting credit, managing withdrawals, pay interest, clearing cheques and providing general utility services to the customers.