Commercial Banks are those institutions which are involved in accepting deposits and advancing loans. Generally, the term 'bank' is understood as a commercial bank. Commercial Banks are established to boost commerce, trade and industrial sectors.
The main functions of commercial banks are accepting deposit from public advancing them loans. However, besides these functions which these banks perform. The major functions of commercial banks are as following:
The most important function of commercial bank is to accept deposits from public. Various sections of the society according to their needs and economic conditions deposit their money in the bank, keeping the needs and interest of the society, bank formulate various deposit schemes. i.e.
The second main function of commercial bank is to advance loan to its customers. Banks charge interest from the borrowers which is the main source of their income. The banks advance loans on the basis of deposit collection. The loan provided by banks are generally secured by proper collateral which valuation is higher than loan amount.
| S.No. | Name |
|---|