Question

Write the functions of commercial banks.

Answer 1

Answer:

A commercial bank is a type of financial institution that performs all activities related to the withdrawals and deposits of money to the public, the provision of investment loans, and so on. These banks are entities of profit making and do business just to earn a profit.

Few examples of commercial banks in India are.

• State Bank of India (SBI)
• Industrial Credit and Investment Corporation of India (ICICI) Bank
• Corporation Bank
• Housing Development Finance Corporation (HDFC) Bank

Functions of commercial banks

• The Primary functions of commercial banks are accepts deposit, provides loan and advances and credit cash.
• The secondary functions of commercial banks are discounting bills of exchange, overdraft facility, purchasing and selling of the Securities, locker Facilities and paying and gather the credit.
• In the economy, commercial banks regulate the flow of capital.
• Loans and financial credits are also approved by commercial banks.