ASSIGNMENT ON

(OMMERCIALBANKS
6UBMLTTED To: DR, sUTATA RANA

NAME MURUL PRATAP SINGH

sUSTECT. BANKING LAN
coURSE- LLB. HONS 2nd YEAR, 3RD SEM
ROLLNO 20491
CoLLEGE. CENTRE OF PROFESSIONAL AND ALLIED
STUDIES
UNIVERSITY. M.D.U ROHTAK
 DATE

PAGE

INDEX

SNo Conten ag la
Intioductinh
2 yhes_of Bank 3

3 unctuons a£ CommehalBanRs 5

Tpes D£ Chediisoffesed ha Comscia

Banks

5 Conclu&LOh 12

Biblingaphy- 13
 DATE
PAGE L

IN TRODUCTION:
CommeRcial banRs L
thl most impaitant conmponantie ha
Lohele banking yalom.
Acomnlelizl banR is a kinLdbaud
a n t cani
pañts (oans
kinanctal instiiution h a t o
Cccekts_debosits and teia cthLi
nanclal sesvices s&Lich as oveidiat
aci Luties and electOnic tians fei
und

Accovding to Culbestson,
Commeiclal Banks aL Haeinstitutians-
hat make hOL maRe shes teim cans

t o business_and in the buoceis ciat

man

Ih_cthes usad, cOmmecial bankS as

inancial nStitutans -/hataCcep

lemand clebcsits eom -H 2eneial
eublicdrcnkeå uncdsand
thi ba nk to andihe eain
plofit
 DATE

PAGE 2
Commescialbanks þlaya igniicort
Aolefn 4ulyLLLinq-thAslkbit teim
a n d miolttuh tesan inancial
igLLLLmenk_a fnduitiies hey
do not pLOvisl ong tusm_ ced
B0 thatLigjuidilu aigets

should_bo maintincol 1 h 4uncd

commieial banks kelona o ie
densal subli nd a au_uiYhol&auon
t_c AhoItnotice,heieo
Lommua eia bank3 pheleSs Lo bsovile
ChLdit f0s_a Shost pesiod e ima
backed by tangible and. lakiLy
makELahles cusities _ CommeYclod
bank& LLhiL puDviolina Loan18
t o businesses ConAidA_vasieus
actOrS éllgh a s nqtuiL a n d
Size_04 ousiness naneial(
status and kO{taikility
ho buliness and iL
akility opa1
loan8
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PAGE.

Public
Sectos
Bank2
eivate
Seta28 IYpes
BanrS OF
Bank

foleign
Sanks

CommLScia Banksake o hae ypes

uohich aklas 0llouss
a)Pablic Sector Banks Resesto a
Ayhe sA_commecialBanks h a t a t
ndtianalize ky thi g0wLnment
a counthy Th bukli. Sectos Sanks
thi maj ktake L hald k
geLLmlnt hTndia u b l sect0x
B a n k Opiate _Lundii the9uldeliis
Kselve Bank a f Tndid(RB1)
uhnieh_ú he Centbal B a n k Some2
he Tholianpuklie Secto banks
State Bank e Ihdia (SBI
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PAGE

COs pæiatien_Bank, Bank_sfkasDola,

Dena Kank_ and njab N a u o n a
Bank(PNB)

Pivate Sector Banks:

ReesLo
to
a_Kind COmmetiaR banksin
LLONich majojPakt shase
Capifal is hald by buivate busihesse
and_indivíduak These banks a
ALQLsTes eol Qs_Lombanies LA
likitd liakilities Some
TInolian puivatesectoi nks ai
Vysya BankThdust ial Credit_and
Lestmant Codposatuen _of India
TLICI Bank and Housing Develof
-munt Enance l'oxpoidiop (HDEC
Bank

Foreiqh_ Bank
Kekel to commeiú cu
banksthat a242 headguasteLed_n a
OLelgh_countiy_ opeiate
baahhes in i e e n t countales
Oeiqp Sanks
epeiaine ln hlta ah Hong
 DATE

PAGE
5
ong and Shanghai kanking Coforatia
LHSBC), CitibaHR , Ameicah Espre42
Bank Standasd Challered Bark
Liindlay's &ank. Tn Thoua_,since
hanci& aeosms 1 2 2 /,1hase
ahapid n he numba
0eig BanRs_Commeiua
ank haik signiiont imÞoztance
n thu econOnic "alelobmint
CounLy a2s
iving the 4hancial sLgLKLLment
Ha Qennial pubhA

Funcions Of Commerual Banks:

Commeucial Banks aie instiiutiozs
hat_LOneluct businegs zor pofit
matvN_ ky acceing pukli
oleposits for vaslau inestment
purpos e
The Lunctions e Commeitial Banks
a h bhoadlyy classifled
inaLy duncteorns and Secopdasy
unciehs uohich_aar shouOp ip
Aiguse
 DATE
PAGE

Functions of
Commerual
A Bank<

TPmary Secondary|
Funcdion
Funci&na
FunctLONR Of CommLAaal Bank

The unctions O m m e C i a l b a n k

a)Primaxy Funchons: Refeis do t h

basic unctiong_e commesLial bane
h a t include hiollouing

Thplies h a t
DAccehting Debosits COmmaKciaL banks
ahl malnly olependent an publit doposits
Thia asl o o types e deposits
e h i c h aslditcuss ed as allows
Demand Debos7ts:
a)- Rekes to_Rind o_deposi
h a t Can
hat be eastly uitladsauon by indiidud
 DATE

PAGE

udthout any i o s natica lo hobank

Th othes_utasds, thi ouOnens o he
dopas
t s an allowed to uiithdhau
mOnoy anutmi bu slmply_uhlhng
a chlek.
Time Debosits:
Kekeis o deposite that
aL fo_celtaih mi Banks
htghes intiese en hmi aliposlt
Thi leposLe can be uicthdiawOn
uly aftes a_speciZie time beiiod s
LOdpletad by hovioling a uSLtton
naticet oH bank.
e)Advancing_Loans:Redes o One Lhi
impatant 4unctions e_LommiLial
banki. Th þuble_dlaposis_ahiusid bu
Lommiual bank or Hho pspes e
a n t i n g Loans in ho
ohdiat Cash_CilALL
olis LounAihg biL o_exchange
2.Secondary Funchons:
LuLialfunctuons a Commeial bank
The Secondasyfuiction Cun be clasifad
Lundis hALNoadshamaly agancs
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PAGE

uncttons, geneal utility funcuons and

atheifinetinn
Ageny Funcuons: Zmpues hat comm
-cial banks act a
agents cuUstomess by peyosming valcus
nctuon uohich a a ollouk
t ollecing chegutu.
The banks ccllect
chegues and BillL exchange an he
cleasinq
ehal house daclLitespovickel
heis customeA h3ouJL
by Hae Ncential Ban
liColleeting Incomu-
Bank collect
dividendi pensLOhsSalaLes Cnts
and intiets Oh investments_e beha!f
B h i l cuLtomiis A Cidit Vouchri
slnt o CustomBs or 7/oymatton
uohen any income sCall'eclad thhe bank.
l ) faying Espentes- Banki make h e payet
vaegs obligartiohs CLStomeds
Zuch as telophon khilli nsAah ce
phemium khool zees nd Sirmdkes
to ChRdit vouches debit vouches
s &ent Jo cuLtomaRs o inonatieh
 DATE
PAGE

uhen expenses asA pald by 4n bank

2 General Uility Funutions
Providungu Locker aclitie Commncual

bankspOvideLockesZacilihes to_LtL CKtou

kor sate Reepnq alelleiy Shaies
dibentiuLs_and atheyaluable ftems
ii)Tssuing Travelei's Checks-
BAnbsissuLe
Saele's check o individuals dor taveling
QLutideu Lourthy Taveles 'AhecLea
HAa ag and tasy_way to ALoteet aa
uohil avel _
inDealihg foregnExchange.Banks help
i n kunVIding oiAgh_exhan e a bsihesámea
dali Ynexpóxis and imports HaLwErR
commdLcial_banks h0ld l0fake l c
beibaii&LOn e HAI CeÜlal Bank.
L 1ransienhg funds
fiundds_asLtaansgeedL
u
nd
tanee
LanathLA
4undsane
mians e_ciadt,talphone tadansex
eloAiOnLe. Kane ankss
Omsns bank_a
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PAGE

3Other Funcions:
CTeaing Mony -Banks that help in inuan
monayBupply. for Es a
bank lencls Rs 5 Lakh to 'an indi Vidual and
bens a DD uúth individual hannl Bonk matea
a CedL entss_of_R 5lakh in thol Alc
Thiu lead io_seatinp monuy
i£lecthonie Banein Zacluéle zvices
such aR Deb/t cai
Chodit asols_arol Tntinat Banklng
Types of Credit oFfered by Commexual Bank
A commiscÁal Bank e e s Shost-esa
Loank to indiViduakand organizatisn
nthi m e ank CLidii hieh i
a seced lban_aisying a cLitain
sati e IntuieLl
Thil au VasuiaLs kubes o BankCaedLiE
pLovidsd ky a commeCiel Bank as
Shgon_ belou0'-
Tyhes of
Bnk Cyedit

Bank Cash Bank Discountung

Loan Cedit OWAdhaft Of B
 DATE
PAGE

Bank Loan: Bank_loan maybe delincd a

anwunk gaanted by he bank
h q m0ney
a t a specifie a t df"intrlest er a {ixe
pesLod ef inme. Bank nacds to fallow2
CeStain quidelines to extend bank oahs
loahs

+ a cluent 7 h e Danks qAant loan Ho2 so

cuent a4ainsé +hskecilty a aiets.
thatin case el dladaLlt Lh h canecos

ha_ oain_emDut.

Cash Cxedit Lsanasiargemeni

made by he bank fo Hl
clients to usithalsauw dash exceeding thu
accout_mit 7he ash czsali ZalLLA
Qhegniially Banciionsd e r yea
b u i tmay extehdupto 3 4ea in
S0m mses The hail oL intiiest chaizai
d2ythe bank h ca&h_ Cidit debendsebe
A tims olulatuon ar ohuch h Cash
has been uithdiawn and hl amount
e_cash

Bank OveLdxaft:mans
Ttte+eshoat
guickegfean
inancina phovidad by he bank Tti a
lacility in_ushucA Hha bank alloas he
CLlertaccount holcus to aveRdiaw hu
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PAGE 12
CusSent accounts by a spei fied umt! The clent
guusally avai t Bank 0veidhatt Lacility to
mut_ulgent and tmesgenoy egusumant
Th Bank chaigos vesy Louw ati Df induast
an_ bank ovetasalt Lho a ceitaun tim.

Discounüng_of Bis: T (á a paocei

&ebtlin4 e a exchange by ha bank a
a valu lés hanthe Lacvalde bepre matusi
dat: Acc.o Sec 126_sf Ñegatiable Thstiumints
a bill of exchange_isan dncanditional aides in
stn4 addiised by
.
one peskOn t0 anathiu
signed th puson giving it, Aa2uLinghe
oLson 8 uohom it adLAd to þayah
plomanod or at xed pr detesnmihable 4utsL time
asumceslain in monsy to 0rdes or to biaiL
Conelusion:
CommieLal banks ail fos brokLL Únktitutiens
inaddhon to being a ky intumucliaks
a t bLngs thi horows analienaluui
Lo qpth_ uohch u AIiCal kox ecOnomi
L any pnfi making thstitutisns_ banps
_denlopA rw psLoduets to Latiuy thuu
CULtamIL
 3
Ganks al
instituttons
cumong h e most
in thi IOLd
high ragulatrs

8ibli ography:
wwW. aeoglo com
AReesAeKe Look- R. k: BanALa