GenBank is a database that contains annotated nucleotide and protein sequences. It includes genomic DNA, mRNA, and EST sequences. There are three main sections in a GenBank file - the header, features, and sequence. The header provides definition, accession number, organism, and reference information. The features section contains gene and protein annotation. The sequence section displays the actual nucleotide or amino acid sequence. Understanding the GenBank file format helps effectively search and retrieve sequences from this important biological database.