para Banking is a kind of banking wherein money is accepted to save from an individual as in the case of a normal banking function. The acceptance of money under Para Banking is scheduled daily, monthly, quarterly, half-yearly, yearly, and even for a fixed period for more than 01 years.

 Other than the above-mentioned function of accepting the money for saving schemes, Para banking also provides secured loan and pre-maturity facilities against the amount in the saving scheme.

 The only major difference between normal banking and Para Banking is that under Para Banking one cannot option for current account facility and carry its day-to-day transaction for accepting and withdrawal of funds. Also, a depositor can’t issue any cheques against the amount in its Para banking saving schemes. Rather there is no concept of a cheque system in Para banking.

 One connects Para Banking activities to a Fixed Deposits facility provided by the bank. Though the amount deposited under Para Banking Saving schemes is for a fixed period and it fetches fixed sums of interest on its deposits, the major differentiation between Para banking Saving Schemes and Fixed Deposit Schemes of banks is that an individual has the option of depositing Daily under Para banking. Whereas the only option under Fixed Deposit Schemes for the depositor is to deposit weekly, forth nightly, monthly, and so on.