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  • Commercial Banks: Doon Business School Anamika Bisht

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    Vikas Gairola
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    Commercial banks are organizations that accept deposits for the purpose of lending in order to earn a profit. Their primary functions are accepting deposits, lending or advancing loans, facilitating credit creation, and operating the cheque system for payment transfers. They also serve as agencies by collecting and paying credit instruments, buying and selling securities, administering wills and taxes, remitting funds, and acting as representatives. Regional Rural Banks were established to provide credit to small farmers, laborers, and artisans in rural areas, as commercial and cooperative banks were incapable of adequately serving these groups. They differ from commercial banks in their area of operation, defined customer base, lower lending rates, goal of eliminating money lenders, and sponsorship by commercial banks.

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    Commercial banks are organizations that accept deposits for the purpose of lending in order to earn a profit. Their primary functions are accepting deposits, lending or advancing loans, facilitating credit creation, and operating the cheque system for payment transfers. They also serve as agencies by collecting and paying credit instruments, buying and selling securities, administering wills and taxes, remitting funds, and acting as representatives. Regional Rural Banks were established to provide credit to small farmers, laborers, and artisans in rural areas, as commercial and cooperative banks were incapable of adequately serving these groups. They differ from commercial banks in their area of operation, defined customer base, lower lending rates, goal of eliminating money lenders, and sponsorship by commercial banks.

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    133 views9 pages

    Commercial Banks: Doon Business School Anamika Bisht

    Uploaded by

    Vikas Gairola
    Commercial banks are organizations that accept deposits for the purpose of lending in order to earn a profit. Their primary functions are accepting deposits, lending or advancing loans, facilitating credit creation, and operating the cheque system for payment transfers. They also serve as agencies by collecting and paying credit instruments, buying and selling securities, administering wills and taxes, remitting funds, and acting as representatives. Regional Rural Banks were established to provide credit to small farmers, laborers, and artisans in rural areas, as commercial and cooperative banks were incapable of adequately serving these groups. They differ from commercial banks in their area of operation, defined customer base, lower lending rates, goal of eliminating money lenders, and sponsorship by commercial banks.

    Copyright:

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    of 9

    COMMERCIAL BANKS

    DOON BUSINESS SCHOOL


    ANAMIKA BISHT
    A-LA-CARTE
     Meaning
     Functions

     RRB

     Meaning

     Difference
    MEANING
     Organisation that accepts deposit for the purpose of
    lending
     Money- Repayble on demand

     Provides financial services

     H.L.HART –

    “ the one in the ordinary course of business honours


    cheque drawn upon by person from and for whom he
    receives money on current account``
    CONT....
     A dealer in debt
     Aims at earning profit

     By accepting deposit from public

     Repayble on demand and otherwise

     And which are used for lending or investments


    FUNCTIONS
     Primary functions
    1. Accepting deposit
    2. Lending or advancing loans (money at call, overdraft,
    cash credit, term loans, credit to govt )
    3. Credit creation
    4. Cheque System of payment of funds
    FUNCTIONS
     Agency functions
    1. Collection and payment of credit (instruments)
    2. Sale and purchase of stock exchange securities
    3. Administration of wills, income tax services etc
    4. Remittance of funds
    5. Representative
    REGIONAL RURAL BANKS - RRB
     M NARASIMHAM Committee – 1975
     Regional Rural Banks Act -1976

     Prathama Grameen Bank- 2nd Oct 1975

     Credit – small and marginal farmers, labourers, artisians

     Why- commercial and co-operative were incapable

     50:15:35 Govt of India, state govt, and sponsoring


    commercial bank
    DIFFERENCE BETWEEN COMMERCIAL
    AND RRB
     Area
     Defined customers

     Lower lending rates

     Eliminate money lenders

     Sponsor by Commercial banks


    THANK YOU

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