STUDY ON ROLE OF COMMERCIAL BANK ON

ECONOMIC DEVELOPMENT

SYNOPSIS

Banks have always played an important position in the country’s economy. They play a decisive role in the development of the
industry and trade. They are acting not only as the custodian of the wealth of the country but also as resources of the country,
which are necessary for the economic development of a nation. The general role of commercial banks is to provide financial
services to general public and business, ensuring economic and social stability and sustainable growth of the economy.
Commercial Bank in India comprises the State Bank of India (SBI) and its subsidiaries, nationalised banks, foreign banks and
other scheduled commercial banks, regional rural banks and non-scheduled commercial banks. The total numbers of branches of
commercial banks are more than 50,000 and the regional rural banks are approximately 8,000 covering 280 districts in the
country. Commercial banks mostly provide short term loans and in some cases medium term financial assistance also to small
scale units. Most of the commercial banks have got specialised units in their administrative structure to take care of the financial
needs of the small scale industrial units. The main objectives of the study is to understand the various function of commercial
banks and to investigate the role of commercial banks in Indian economic development. Research is based upon both primary and
secondary data. Primary data is collected through a well- designed questionnaire and total of 20 respondents were chosen for the
study.

INTODUCTION

Bank is a financial institution that performs several functions like accepting deposits, lending loans, agriculture and rural
development etc. Bank plays an important role in the economic development of the country. It is necessary to encourage people
to deposit their surplus funds with the banks. These funds are used -for providing loans to the industries thereby making
productive investments. A bank is a financial intermediary that accepts deposits and channels those deposits into lending
activities. They are the active players in financial market. The essential role of a bank is to connect those who have capital with
those who seek capital. After the post economic liberalisation and globalisation, there has been a significant impact on the
banking industry. Banks which are conservative and conventional in their approach have come out from their shell and face the
challenges of planned economic growth. In recent years non-conventional sectors are receiving the attention of commercial banks
in India.The Commercial banks play an important and active role in the economic development of a country, if the banking
system in a country is effective, efficient and prudent. India is an agricultural country. The agriculture is the backbone of
economy of any country like India. Both public and private banks are now involving themselves in a lot of agri-based
activities as well as manufacturing industry activities. Due to liberalisation, privatisation and globalisation the role of banking
sector changed dramatically. The credit is one of the critical inputs for agricultural development.

OBJECTIVES OF THE STUDY

• To understand the different functions of Commercial bank.

• To investigate the role of commercial bank in Indian economic development.

RESEARCH METHODOLOGY

Data required for this study is collected from primary and secondary sources. A structured questionnaire was prepared and given
to 20 respondents to collect primary data and secondary data was collected from books, newspapers and internet.

LIMITATIONS OF THE STUDY

• The study is restricted to Tirupur district of Tamil Nadu

• Only 20 respondents have been selected due to the time restriction

• Due to extreme less number of respondents, the correct knowledge of the citizens of the country and impact of
commercial Bank on the development of economy cannot be determined.

FUNCTIONS OF COMMERCIAL BANKS

The commercial banks serve as the kingpin of the financial system of the country. They render many valuable services.
Commercial banks provide banking services to businesses and consumers through a network of branches. These banks are in
business to make a profit for their owners and they are usually public limited companies managed by shareholders. In India,
however, most of the top commercial banks are owned by the government. But many private commercial banks have been
established in the recent years. Commercial banks are all-purpose banks that perform a wider range of functions such as accepting
demand deposits, issuing cheques against saving and fixed deposits, making short-term business and consumer loans, providing
brokerage services, buying and selling foreign exchange and so on.
The functions of commercial banks are explained below:

Primary functions

· Collection of deposits: The primary function of commercial banks is to collect deposits from the public. Such deposits are of
three main types: current, saving and fixed.

Current Account: A current account is used to make payments. A customer can deposit and withdraw money from the current
account subject to a minimum required balance. If the customer overdraws the account, he may be required to pay interest to the
bank. Cash credit facility is allowed in the current account.

Savings Account: Savings account is an interest yielding account. Deposits in savings account are used for saving money.
Savings bank account-holder is required to maintain a minimum balance in his account to avail of cheque facilities.

Fixed or Term deposits: Fixed or term deposits are used by the customers to save money for a specific period of time, ranging
from 7 days to 3 years or more. The rate of interest is related to the period of deposit. For example, a fixed deposit with a maturity
period of 3 years will give a higher rate of return than a deposit with a maturity period of 1 year. But money cannot be usually
withdrawn before the due date. Some banks also impose penalty if the fixed deposits are withdrawn before the due date.
However, the customer can obtain a loan from the bank against the fixed deposit receipt.

· Making loans and advances: : Commercial banks have to keep a certain portion of their deposits as legal reserves. The
balance is used to make loans and advances to the borrowers. Individuals and firms can borrow this money and banks make
profits by charging interest on these loans. Commercial banks make various types of loans such as:

1. Loan to a person or to a firm against some collateral security.

2. Cash credit (loan in instalments against certain security).

3. Overdraft facilities (i.e. allowing the customers to withdraw more money than what their deposits permit).

4. Loan by discounting bills of exchange.

Secondary functions

Agency Services: The customers may give standing instruction to the banks to accept or make payments on their behalf. The
relationship between the banker and customer is that of Principal and Agent. The following agency services are provided by the
bankers:

1. Payment of rent, insurance premium, telephone bills, instalments on hire purchase, etc. The payments are obviously made from
the customer’s account. The banks may also collect such receipts on behalf of the customer.

2. The bank collects cheques, drafts, and bills on behalf of the customer.

3. The banks can exchange domestic currency for foreign currencies as per the regulations.
4. The banks can act as trustees / executors to their customers. For example, banks can execute the will after the death of their
clients, if so instructed by the latter.

General Utility Services: The commercial banks also provide various general utility services to their customers. Some of these
services are discussed below:

1. Safeguarding money and valuables: People feel safe and secured by depositing their money and valuables in the safe custody
of commercial banks. Many banks look after valuable documents like house deeds and property, and jewellery items.

2. Transferring money: Money can be transferred from one place to another. In the same way, banks collect funds of their
customers from other banks and credit the same in the customer’s account.

3. Merchant banking: Many commercial banks provide merchant banking services to the investors and the firms. The merchant
banking activity covers project advisory services and loan syndication, corporate advisory services such as advice on mergers and
acquisitions, equity valuation, disinvestment, identification of joint venture partners and so on.

4. Automatic Teller Machines (ATM): The ATMs are machines for quick withdrawal of cash. In the last 10 years, most banks
have introduced ATM facilities in metropolitan and semi-urban areas. The account holders as well as credit card holders can
withdraw cash from ATMs.

5. Traveller’s cheque: A traveller’s cheque is a printed cheque of a specific denomination. The cheque may be purchased by a
person from the bank after making the necessary payments. The customer may carry the traveller’s cheque while travelling. The
traveller’s cheques are accepted in banks, hotels and other establishments.

6. Credit Cards: Credit cards are another important means of making payments. The Visa and Master Cards are operated by the
commercial banks. A person can use a credit card to withdraw cash from ATMs as well as make payments to trade
establishments.

IMPORTANCE OF BANKS IN THE DEVELOPMENT OF THE COUNTRY

Banks are one of the most important parts of any country. In this modern time money and its necessity is very important. A
developed financial system of the country ensures to attain development. A modern bank provides valuable services to a country.
To attain development there should be a good developed financial system to support not only the economic but also the society.
So, a modern bank plays a vital role in the socio economic matters of the country. Some of the important role of banks in the
development of a country is briefly showing below.

PROMOTE SAVING HABITS OF THE PEOPLE: Bank attracts depositors by introducing attractive deposit schemes and
providing rewards or return in the form of interest. Banks providing different kinds of deposit schemes to its customers. It enable
to create banking habits or saving habits among people.
 CAPITAL FORMATION AND PROMOTE INDUSTRY: Capital is one of the most important parts of any business or
industry. It is the life blood of business. Banks are increase capital formation by collecting deposits from depositors and convert
these deposits in to loans advances to industries.

SMOOTHING OF TRADE AND COMMERCE FUNCTIONS: In this modern era trade and commerce plays vital role
between any countries. So, the money transaction should be user friendly. A modern bank helps its customers to sent funds to
anywhere and receive funds from anywhere of the world. A well developed banking system provides various attractive services
like mobile banking, internet banking, debit cards, credit cards etc. these kinds of services fast and smooth the transactions. So,
bank helps to develop trade and commerce.

GENERATE EMPLOYMENT OPPORTUNITY: Since a bank promote industry and investment, there automatically generate
employment opportunity. So, a bank enables an economy to generate employment opportunity.

SUPPORT AGRICULTURAL DEVELOPMENT: Agricultural sector is one of the integral part of any economy. Food self
sufficiency is the major challenge and goal of any country. Modern bank promote agricultural sector by providing loans and
advances with low rate of interest compared to other loans and advances schemes.

APPLYING OF MONITORY POLICY: Monitory policy is a important policy of any government. The major aim of monitory
policy is to stabilise financial system of the country from the dangerous of inflation, deflation, crisis etc.

BALANCED DEVELOPMENT: Modern banks spreading its operations throughout the world. There are number of big banks
like Citi bank, Baroda bank etc. It helps a country to spread banking activities in rural and semi urban areas. With the spreading
of banking operations around the country, helps to attain balanced development by promoting rural areas. Modern bank plays
vital role in the socio- economic development of the country. A developed banking system enables the country to attain balanced
development without any special consideration of rich and poor, cities and rural areas etc.

ROLE OF BANKS IN THE DEVELOPMENT OF THE ECONOMY

Commercial banks are one source of financing for small businesses. The role of commercial banks in economic development
rests chiefly on their role as financial intermediaries. In this capacity, commercial banks help drive the flow of investment capital
throughout the marketplace. The chief mechanism of this capital allocation in the economy is through the lending process which
helps commercial banks.

1) Mobilising Saving for Capital Formation:- The commercial banks help in mobilising savings through network of branch
banking. People in developing countries have low incomes but the banks encourage them to save by introducing variety of
deposit schemes to suit the needs of individual depositors. They also mobilise idle savings of the few rich. By mobilizing savings,
the banks channelize them into productive investments. Thus they help in the capital formation of a developing country.

2) Financing Industry:- The commercial banks finance the industrial sector in a number of ways. In generally they provide
short-term, medium-term and long-term loans to industry. In India they provide mainly short-term loans as well medium-term
loans for one to three years. But in Korea, the commercial banks also advance long-term loans to industry.
 3) Generate Employment Opportunities:- Since a bank promote industry and investment, there automatically generate
employment opportunity. So, a bank enables an economy to generate employment opportunity.

4) Smoothing of trade and commerce functions:- In this modern era trade and commerce plays vital role between any
countries. So, the money transaction should be user friendly. A modern bank helps its customers to sent funds to anywhere and
receive funds from anywhere of the world. A well developed banking system provides various attractive services like mobile
banking, internet banking, debit cards, credit cards etc. these kinds of services fast and smooth the transactions. So, bank helps to
develop trade and commerce.

5) Financing Agriculture:- The commercial banks help the large agricultural sector in developing countries in a number of
ways. They provide loans to traders in agricultural commodities. They provide finance directly to farmers for the marketing of
their produce, for the modernisation and mechanisation of their farms, for providing irrigation facilities, for developing land, etc.
They also provide financial assistance for animal husbandry, dairy farming, sheep breeding, poultry farming, and horticulture.

6) Application of Monetary Policy:- Monetary policy is a important policy of any government. The major aim of monitory
policy is to stabilise financial system of the country from the dangerous of inflation, deflation, crisis etc.

7) Financing Small Businesses:- Commercial banks also finance business lending in a variety of ways. A business owner may
solicit a loan to finance the start-up costs of a small business. Once funded, the small business may begin operations and embark
on a growth plan. The aggregate effect of small business activity generates a significant portion of employment around the
country.

8) Promotion of Saving habits:- Bank attracts depositors by introducing attractive deposit schemes and providing rewards or
return in the form of interest. Banks providing different kinds of deposit schemes to its customers. It enables to create banking
habits or saving habits among people.

9) Support the Government Spending:- Commercial banks also support the role of the federal government as an agent of
economic development. Generally, commercial banks help fund government spending by purchasing bonds issued by the
Department of the Treasury. Both long and short term Treasury bonds help finance government operations, programs and support
deficit spending.

10) Arbiters of Risk:- One of the most significant roles of commercial banks in economic development is as arbiters of risk. This
occurs primarily when banks make loans to businesses or individuals. For instance, when individuals apply to borrow money
from a bank, the bank examines the borrower's finances, including income, credit score and debt level, among other factors. The
outcome of this analysis helps the bank gauge the likelihood of borrower default. By weeding out risky borrowers, commercial
banks lessen the risk of financial losses

ANALYSIS AND INTERPRETATION

Analysis and interpretation plays an important role in any research process. It helps to extract findings from the collected data by
applying the statistical technique and discovering additional findings. it converts raw data into meaningful data by bridging
primary data and secondary data. and this is a process in which data is collected or processed in order to summarize the results.
and this is done with an attempt to organize data in order to enhance the effect of results in such a way that enables to relate tickle
points with study, objects and data and places. This is an interpretation based on a questionnaire which gives the primary data that
is required for the study. and this is an interpretation based on the opinion given by the respondent.

AGE:-

Age Percentage

Number Of Respondents

16 9 60

17 6 40

GENDER:-

Gender Number of Respondents Percentage

Male 10 33.3

Female 5 66.7
It can be concluded that the majority of the respondents are male (10), whereas minor respondents being female (5).

OCCUPATION:-

It can be concluded that all of the respondents are students being (100%) of all the respondents

RESPONSE ANALYSIS

Q1:
CONTRIBUTION OF COMMERCIAL BANKS TOWARDS ECONOMIC DEVELOPMENT

CAPITAL ACCUMULATION

Table:1.1

Opinion Number Of Respondents Percentage

Strongly Agree 8 53.3

Agree 3 20

Neutral 4 26.6

Disagree 0 0

Strongly Disagree 0 0

Total 15 100

It can be concluded that the majority of the respondents (53.3%) strongly agreed with the given opinion, while a smaller
proportion agreed (20%) and a significant minority selected a neutral stance (26.6%). It's worth noting that there were no
respondents who disagreed or strongly disagreed with the opinion based on the provided data.

Chart:1.1

Capital accumulation
45
40
35
30
Number Of Respondents
25 Percentage
20
15
10
5
0
Strongly Agree Neutral Disagree Strongly
agree Disagree
MOBILISATION OF SAVINGS

Table:1.2

Opinion Number Of Respondents Percentage

Strongly agree 3 20

Agree 8 53.3

Neutral 4 26.6

Disagree 0 0

Strongly Disagree 0 0

Total 15 100

It can be concluded that a majority of the respondents (53.3%) agreed with the given opinion, while a smaller percentage (20%)
strongly agreed, and a significant minority (26.6%) chose a neutral stance. Notably, there were no respondents who disagreed or
strongly disagreed based on the provided data.

Chart:1.2
 Mobilization of savings
45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

AVAILABILITY OF FUNDS

Table:1.3

Opinion Number Of Respondents Percentage

Strongly agree 3 20

Agree 8 53.3

Neutral 3 20

Disagree 1 6.6

Strongly Disagree 0 0

Total 15 100
Based on this interpretation, it can be concluded that a significant proportion of the respondents (53.3%) agreed with the given
opinion, while a smaller percentage strongly agreed (20%) and chose a neutral stance (20%). A minority of respondents (6.6%)
disagreed with the opinion. Notably, there were no respondents who strongly disagreed based on the provided data.

Chart:1.3

Availiblity of funds
45

40

35

30

25 Number Of Respondents
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

CREATORS AND DISTRIBUTORS MONEY

Table:1.4

Opinion Number Of Respondents Percentage

Strongly agree 2 13.3

Agree 8 53.3

Neutral 3 20

Disagree 2 13.3
Opinion Number Of Respondents Percentage

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that a majority of the respondents (53.3%) agreed with the given opinion, while a
smaller percentage strongly agreed (13.3%) and disagreed (13.3%). Additionally, a significant proportion of respondents (20%)
chose a neutral stance. It's noteworthy that no respondents indicated a "Strongly disagree" opinion.

Chart:1.4

Creators and distributers money

45

40

35

30

25 Number Of Respondents
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

IMPLEMENTATION OF MODERN TECHNOLOGY

Table:1.5
Opinion Number Of Respondents Percentage

Strongly agree 3 20

Agree 6 40

Neutral 5 33.3

Disagree 1 6.6

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that a significant portion of the respondents (40%) agreed with the given opinion,
while a smaller percentage strongly agreed (20%) and disagreed (6.6%). Additionally, a notable proportion of respondents
(33.3%) chose a neutral stance. It's worth mentioning that no respondents indicated a "Strongly disagree" opinion.

Chart:1.5

Implementation of modern technology

45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree
DEVELOPMENT OF INDUSTRIAL SECTOR

Table:1.6

Opinion Number Of Respondents Percentage

Strongly agree 4 26.6

Agree 7 46.6

Neutral 3 20

Disagree 1 6.6

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that a significant proportion of the respondents (46.6%) agreed with the given
opinion, while a smaller percentage strongly agreed (26.6%) and disagreed (6.6%). Additionally, a notable proportion of
respondents (20%) chose a neutral stance. It's worth mentioning that no respondents indicated a "Strongly disagree" opinion.

Chart:1.6
 Implementation of modern technology
45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

DEVELOPMENT OF AGRICULTURE SECTOR

Table:1.7

Opinion Number Of Respondents Percentage

Strongly agree 4 26.6

Agree 4 26.6

Neutral 4 26.6

Disagree 3 20

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that an equal proportion of respondents (26.6%) both strongly agreed and agreed
with the given opinion. Additionally, an equal proportion of respondents (26.6%) chose a neutral stance. A slightly smaller
percentage (20%) disagreed with the opinion. It's worth mentioning that no respondents indicated a "Strongly disagree" opinion.
Chart:1.7

Development of agricultural sector

45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

EXPANSION OF MARKET

Table:1.8

Opinion Number Of Respondents Percentage

Strongly agree 2 13.3

Agree 9 60

Neutral 3 20

Disagree 1 6.6

Strongly Disagree 0 0

Total 15 100
Based on this interpretation, it can be concluded that a significant proportion of the respondents (60%) agreed with the given
opinion, while a smaller percentage strongly agreed (13.3%) and disagreed (6.6%). Additionally, a notable proportion of
respondents (20%) chose a neutral stance. It's worth mentioning that no respondents indicated a "Strongly disagree" opinion.

Chart:1.8

Expansion of market
45
40
35
30
Number Of Respondents
25
Percentage
20
15
10
5
0
Strongly Agree Neutral Disagree Strongly
agree Disagree

RESEARCH AND DEVELOPMENT

Table:1.9

Opinion Number Of Respondents Percentage

Strongly agree 1 6.6

Agree 9 60

Neutral 4 26.6

Disagree 1 6.6

Strongly Disagree 0 0

Total 15 100
Based on this interpretation, it can be concluded that a majority of the respondents (60%) agreed with the given opinion, while a
smaller proportion strongly agreed (6.6%) and disagreed (6.6%). Additionally, a notable percentage of respondents (26.6%) chose
a neutral stance. It's worth mentioning that no respondents indicated a "Strongly disagree" opinion.

Chart:1.9

Research and development

45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

ESSENTIAL OF FOREIGN TRADE

Table:1.10

Opinion Number Of Respondents Percentage

Strongly agree 5 33.3

Agree 7 46.6

Neutral 1 6.6

Disagree 1 6.6
Opinion Number Of Respondents Percentage

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that a substantial proportion of the respondents (46.6%) agreed with the given
opinion, while a significant percentage strongly agreed (33.3%). Additionally, a small portion of respondents (6.6%) chose a
neutral stance, and an equal percentage disagreed (6.6%). Notably, there were no respondents who strongly disagreed based on
the provided data.

Chart:1.10

Essential of foriegn trade

45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

PROVISION OF VALUABLE SERVICES

Trade:1.11

Opinion Number Of Respondents Percentage

Strongly agree 3 20
Opinion Number Of Respondents Percentage

Agree 5 33.3

Neutral 4 26.6

Disagree 2 13.3

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that a notable proportion of the respondents (33.3%) agreed with the given
opinion, while a smaller percentage strongly agreed (20%) and disagreed (13.3%). Additionally, a significant proportion of
respondents (26.6%) chose a neutral stance. It's worth mentioning that no respondents indicated a "Strongly disagree" opinion.

Chart:1.11

Provision of valuable table

45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree
Q2:

 CONSTRAINTS FACED BY COMMERCIAL BANK IN CONTRIBUTING TOWARDS ECONOMIC DEVELOPMENT

FINACIAL DISTRESS

Table:2.1

Opinion Number Of Respondents Percentage

Strongly agree 5 33.3

Agree 4 26.6

Neutral 5 33.3

Disagree 1 6.6

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that a significant proportion of the respondents (33.3%) strongly agreed with the
given opinion. Additionally, a notable percentage agreed (26.6%) and chose a neutral stance (33.3%). A smaller proportion
(6.6%) disagreed with the opinion. It's worth mentioning that no respondents indicated a "Strongly disagree" opinion.

Chart:2.1
 Financial distress
45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

BAD MANAGMENT

Table:2.2

Opinion Number Of Respondents Percentage

Strongly agree 1 6.6

Agree 7 46.6

Neutral 6 40

Disagree 0 0

Strongly Disagree 1 6.6

Total 15 100

Based on this interpretation, it can be concluded that a small proportion of the respondents (6.6%) strongly agreed with the given
opinion. Additionally, a significant percentage (46.6%) agreed, and a notable proportion (40%) chose a neutral stance. Only one
respondent (6.6%) strongly disagreed, while there were no respondents who disagreed.
Chart:2.2

Bad managment
45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

BANK FRAUD

Table:2.3

Opinion Number Of Respondents Percentage

Strongly agree 4 26.6

Agree 4 26.6

Neutral 5 33.3

Disagree 1 6.6
Opinion Number Of Respondents Percentage

Strongly Disagree 1 6.6

Total 15 100

Based on this interpretation, it can be concluded that an equal number of respondents (26.6%) strongly agreed and agreed with
the given opinion. Additionally, a slightly higher percentage (33.3%) chose a neutral stance. A smaller proportion (6.6%)
disagreed with the opinion, and another 6.6% strongly disagreed.

Chart:2.3

Bank fraud
45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

FINANCIAL POLICY

Table:2.4

Opinion Number Of Respondents Percentage

Strongly agree 33.3

Agree 7 46.6
Opinion Number Of Respondents Percentage

Neutral 3 20

Disagree 0 0

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that a significant proportion of the respondents (46.6%) agreed with the given
opinion, while a notable percentage (33.3%) strongly agreed. Additionally, a smaller portion (20%) chose a neutral stance. It's
worth mentioning that there were no respondents who disagreed or strongly disagreed based on the provided data.

Chaer:2.4

Financial policy
45

40

35

30
Number Of Respondents
25
Percentage
20

15

10

0
Strongly Agree Neutral Disagree Strongly
agree Disagree

Q3:

Do you agree Commercial Banks can positively Play Better Roles towards Fund mobilisation
for economic development?
Table:3.1

Opinion Number Of Respondents Percentage

Strongly agree 4 26.7

Agree 6 40

Neutral 5 33.3

Disagree 0 0

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that a notable proportion of the respondents (40%) agreed with the given
opinion. Additionally, a significant percentage (26.7%) strongly agreed, and a considerable proportion (33.3%) chose a neutral
stance. It's worth mentioning that there were no respondents who disagreed or strongly disagreed based on the provided data.

Chart:3.1

Q4:
Do you agree Commercial Banks can contribute positively towards employment generation?

Table:4.1

Opinion Number Of Respondents Percentage

Strongly agree 1 6.7

Agree 4 26.7

Neutral 9 60

Disagree 1 6.7

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that a small proportion of the respondents (6.7%) strongly agreed with the given
opinion. Additionally, a notable percentage (26.7%) agreed, and a significant majority (60%) chose a neutral stance. A smaller
proportion (6.7%) disagreed with the opinion. It's worth mentioning that there were no respondents who strongly disagreed based
on the provided data.

Chart:4.1
Q5:

 Do you agree Commercial Banks play significant roles towards Wealth Creation for Economic
Development in India?

Table:5.1

Opinion Number Of Respondents Percentage

Strongly agree 3 20

Agree 3 20

Neutral 4 26.7

Disagree 5 33.3

Strongly Disagree 0 0

Total 15 100

Based on this interpretation, it can be concluded that a small proportion of the respondents (20%) strongly agreed with the given
opinion. Additionally, a notable percentage (20%) agreed, and a significant majority (33.3%) chose a disagree stance. A smaller
proportion (26.7%) neutralised with the opinion. It's worth mentioning that there were no respondents who strongly disagreed
based on the provided data.

Chart:5.1
CONCLUSION

In conclusion, the role of commercial banks in economic development is undeniably crucial and multifaceted. These financial
institutions play a pivotal role in channeling funds from surplus to deficit units in the economy, facilitating the flow of capital that
drives investment and growth. By offering various financial services such as deposit accounts, loans, and credit facilities,
commercial banks enable businesses to expand, innovate, and create employment opportunities, thus fostering economic
prosperity.

Moreover, commercial banks act as intermediaries between savers and borrowers, effectively allocating resources to productive
sectors and projects. They play a pivotal role in transforming short-term savings into long-term investments, enabling the efficient
utilization of financial resources for productive ventures, which in turn contribute to overall economic growth and development.

IMAGES
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https://www2.deloitte.com/cn/en/pages/financial-services/articles/direct-
banking-exploration-commercial-bank-transformation-development.html
https://www.researchgate.net/publication/
292056004_Commercial_banks_historical_development
https://www.vedantu.com/commerce/credit-creation-by-commercial-bank
https://byjus.com/commerce/credit-creation-by-commercial-bank/
https://www.preservearticles.com/economics/essay-on-the-growth-of-
commercial-banking-in-india/20539
https://www.shiksha.com/online-courses/articles/commercial-banks/
https://en.wikipedia.org/wiki/Commercial_bank
https://www.ir.com/guides/trends-in-commercial-banking
https://arpitsrivastava.com/evolution-of-commercial-banks-in-india/
 https://economictimes.indiatimes.com/definition/commercial-bank

APPENDIX

NAME
Your answer

AGE
Your answer

GENDER
MALE
Female

OCCUPAATION
Your answer

CONTRIBUTIONS OF COMMERCIAL BANKS TOWARDS ECONOMIC DEVELOPMENT.

Strongly agree Agree Neutral Disagree Strongly disgre

Capital Accumulation

Mobilization of Savings

Availability of Funds
Creators and Distributors
Money

Capital Accumulation

Mobilization of Savings

Availability of Funds
Creators and Distributors
Money

CONSTRAINTS FACED BY COMMERCIAL BANK IN CONTRIBUTING TOWARDS ECONOMIC

DEVELOPMENT

Strongly agree Agree Neutral Disagree Strongly disagre

Financial Distress

Bad Managment

Financial Distress

Bad Managment
Do you agree Commercial Banks can positively Play Better Roles towards Fund mobilisation
for economic development?

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

Do you agree Commercial Banks can contribute positively towards employment generation?

Strongly agree

Agree

Neutral

Disagree

Strongly Disagree

 Do you agree Commercial Banks play significant roles towards Wealth Creation for Economic
Development in India?

Strongly agree

Agree

Neutral

Disagree

Strongly disagree