NAME

ROLLNO

ARFAT PATHAN

34

KAMRAN KHOT

18

SAMEER SHAIKH

49

SUFIYAN KEWAL

14

YUSUF TAMNE

51

ZIYAD KAMLE

12

What is commercial bank?

A commercial bank is a profit-seeking business firm,
dealing in money and credit. It is a financial institution
dealing in money in the sense that it accepts deposits of
money from the public to keep them in its custody for
safety.
A bank is, therefore like a reservoir into which flow
the savings, the idle surplus money of households and
from which loans are given on interest to businessmen
and others who need them for investment or productive
uses.

DEFINATION OF COMMERCIAL
BANKS
A commercial

bank is a financial institution that

is authorized by law to receive money from
businesses and individuals and lend money to
them. Commercial banks are open to the public
and serve individuals, institutions, and businesses.
A commercial bank is almost certainly the type of
bank you think of when you think about a bank
because it is the type of bank that most people
regularly use.

TYPES OF BANKS

Commercial Banks

Industrial Banks

Agricultural Banks

Exchange Banks

Saving Banks

Indigenous Banks

Central Bank

COMMERCIAL BANKS IN INDIA

Promoting Capital Formation

Facilitator of Monetary Policy

Monetisation

Influence Economic Activity

Directing Funds into Desired Channels

Implementation of the Policies of Govt.

Encouraging Innovations

Functions of Commercial
Banks
Basic Function:
(i) Mobilization of Deposits.
Saving
Fixed

Deposit Account

Deposit Account

Recurring
Current
Flexible

Deposit Account

Deposit Account
Deposit Account

Functions of Commercial
Banks
(ii) Credit Deployment:
Money
Cash

at Call

Credit

Overdraft
Discounting
Term

Loan

Bills of Exchange

Agency Functions

Remittance of Funds

Collection & Payment of Credit Instruments

Execution of standing orders

Sale and Purchase of securities

Trustees and Executors of Wills

Collection of Dividend on Shares and Interest on

Debentures

Development Functions
Capital
Rural

Formation

Development

Priority

Sector Advances

Creating

Employment

Assistance

of Money & Capital Market

General Utility Functions

Locker

Facility

Travellers
Merchant

Cheque Facility

Banking Service

Acting

as Underwriters

Acting

an Information Provider

Acting

as a Referee

Modern Functions
ATMs
Tele-Banking
Internet
Smart

Banking

Cards

Round

the Clock Banking

Conclusion
From the above discussion, we can say that, commercial
banks form the most important part of financial
intermediaries. It accepts deposits from the general public
and extends loans to the households, firms and the
government. Banks form a significant part of the
infrastructure essential for breaking vicious circle of
poverty and promoting economic growth.