Cash and credit transactions from banks

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Bank as a trading institution can provide customers with a large number of financial services, but 2 main types of operations are carried out – cash and credit. What are the peculiarities of this and others? How can you understand the importance of both types of operations for the development of a credit institution?

What are bank money transactions? This includes accepting cash and other valuables from customers of credit and financial organizations and giving assets to these or other citizens who make an application.

The peculiarities of cash transactions at banks

The peculiarities of cash transactions at banks

Bank deposits are often considered to be one of the most liquid assets of an institution, but they are considered low-income. The main purpose of the operations in question is to organize the credit organization’s customer service system. In this case, the cash turnover is regulated by regulations, which are mainly issued by the central bank, which has the status of a national emission center.

Russian banks’ cash operations relate to the most important economic sectors of the relevant institutions. By accepting funds from customers – individuals, legal entities – the organization increases the available reserves that can later be used for high-yielding activities primarily related to the issuance of loans – personal and corporate loans.

The bank can generate additional income from cash sales, for example by charging a fee for the issue of cash in certain cases (this usually affects the withdrawal of income from company accounts).

Bank cash transactions are carried out according to the following principles:

– Cash is handled in accordance with the standards set by the Central Bank of the Russian Federation.

– cash is placed in internal accounts with a credit institution;

– The setting of limits for credit is carried out in accordance with the adopted regulations.

There is a special sub-type of a cash transaction that is carried out by the supervisory authority, the central bank. It will be useful to study their details in more detail.

Cash operations of the Bank of Russia

Cash operations of the Bank of Russia

So not only carry out cash transactions, but also credit regulation – the central bank of the Russian Federation. They are carried out as part of the contractual support of private institutions. With these operations you can:

– Optimizing the cash turnover of a commercial credit institution;

– provide operational calculations for customer accounts of natural or legal persons;

– Timely transfer of funds to banks in accordance with the limit value requirements.

After considering what the bank’s cash operations, control and oversight functions in the credit and financial markets are, we will examine the specifics of such procedures performed by commercial institutions.

Cash operations in commercial credit institutions


Private banks carry out cash transactions aimed at customer service – individuals or legal entities. In this case, the standards issued by the regulator. The main activities of banks operating in the commercial sector of the financial sector are as follows:

– to receive cash;

– Spend cash.

The first group of operations assumes that an institution’s customer or partner is transferring cash:

– to the cash register;

– collectors who then transfer money to the bank;

– to partner organizations, which then transfer cash to a bank by bank transfer.

Withdrawal of funds in most cases is made directly at the cash register of a financial institution. If cash is required for a legal person, a receipt can be based on supporting documents that confirm the targeted use of funds.

Cashier functions

In cash banks, labor specialists with skills in this type of activity – cashiers. You are responsible for the correct calculation of the amounts to be received by customers or vice versa for the expenditure, the credit to the account and the certification of the required documents. The cash register also offers reliable storage of funds – for example with a safe. The work of a specialist with the corresponding profile is also strictly regulated by law.


So we looked at what constitutes the most important money transactions of the banks are cash and loans. The first is sufficiently liquid, but not too profitable. Bank money transactions generate revenue mainly from a bank’s commission. They indirectly determine the occurrence of profits due to the creation of reserves at the bank that can be used in other areas of activity.

In contrast, second operations can significantly increase the capitalization of a financial institution. After a loan is granted, a bank usually expects a sufficiently high profit. However, the customer may not be able to repay the loan due to financial difficulties.

Which banking transactions have priority from one point? With regard to the implementation of the business model at a certain point in time, the management of the financial institution determines.

In many ways, it depends on the value of the central bank’s key rate. The higher it is, the less intense the credit market is, and it makes sense for the bank to be more active in developing cash-related areas for customers.