The bank may also ask the borrower to open their account and start their bank transactions so that the bank can monitor their activities from the very beginning itself. While cash is an important payment instrument that people use in their daily lives to purchase goods and services, other payment instruments are also available and widely used. Both the maker and payee may be natural persons or legal entities.

One of the most important aspects of opening the account is the introduction of KYC norms which should be complied with and it is mandatory. Some of these securities are common, such as equity or stock investments, as well as bonds or debt securities.Small investors and institutional investors, including mutual funds, frequently buy and sell stocks and bonds.More complex financial instruments, … Importance in Payment System.

(i) The banks create instruments of credit which are very convenient substitutes for money. This has given the advantages in two folds that are for bank as well as for the customers.

The banking sector in the current days is able to provide with the novel services to the consumers through effective exploitation of the internet.
The banking system can be useful in the following ways, in addition to what has been mentioned in the functions of banks.

All payment systems in Fiji are regulated and supervised by the Reserve Bank of Fiji.
Trade finance relates to the process of financing certain activities related to commerce and international trade. The article presents the methods of measuring traded instruments that are very important for the management of market risk within a bank institution. Meaning of a Cheque: A cheque is a negotiable instrument instructing a financial Institution to pay a specific amount of specific currency from a specific demand account held in the name of the maker/depositor’s name with that institution.

Financial instruments are securities that both large and small investors can use to gain exposure to the financial markets.

Undeveloped banking system is not only an index of economic backwardness of a country, it is also an important cause of it. The Law of Banking, Negotiable Instruments and Insurance is a vast area of Commercial Law governing various commercial transactions involving banks and their activities, negotiable instruments such as checks, shares or stocks and warehouse goods deposit certificates and insurance companies‘ and their activities.