Question

features of private banks

Answer 1

A private commercial bank is an institution that accepts deposits from the general public and extends loans for various purposes. It is engaged in a two way transaction. On one hand, it accepts deposits from the public and in return offers a rate of interest on their deposits. On the other hand, it extends loans to investors in return of which it charges a rate of interest. In this way it mediates between those who have surplus funds and those who require funds.