Short Note on The Functions of Commercial Banks in India

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Commercial Banks: A Commercial Bank is an organised financial institution ,which accepts deposits from the Public and leads Money to industry,Trade,agriculture and Consumers etc.These are the examples for Commercial Banks

  • Allahabad Bank.
  • Andhra Bank.
  • Bank of India.
  • Bank of Baroda.
  • Bank of Maharashtra.
  • Canara Bank.
  • Central Bank of India.
  • Corporation Bank.

Functions of Commercial Banks

1.Acceptance of Deposits: It accepts the deposit from the public in the farm of Fixed deposit account,Saving bank account and current account.

2.Creation of Credit: 

  • A Bank Utilizes the deposits carefully.
  • It Ventures to do Business with the deposits.
  • It Always keeps some cash balance to meet the demands from the depositors.
  • It offers Ordinary Loans,Cash Loans,Overdraft and Discounting of bills of exchange to the Public.

3.Other Functions

It does some service to its customers such as

A.Issuing Bank Drafts.

B.Purchase and Sale of shares and Bonds.

C.Providing Bank Locker Facilities

D.Issue of Travellers Cheques and so on.

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