Commercial Banks

Definitions of commercial Banks

While defining the term banks it is taken into news report that what type of task is performed by the banks. Some of the famous definitions atomic number 18 given below:

According to Prof. Sayers, A bank is an asylum whose debts ar widely accepted in settlement of another(prenominal) peoples debts to each other. In this definition Sayers has emphasized the transactions from debts which are raised by a pecuniary institution.

According to the Indian Banking Comp all Act 1949, A banking company means any company which transacts the business of banking . Banking means accepting for the purpose of lend of investment of deposits of money from the public, payable on gather up or other wise and withdraw able by cheque, limn or otherwise.

Functions of Commercial Banks

Commercial bank being the financial institution performs diverse types of functions. It satisfies the financial needs of the sectors such as agriculture, industry, trade, communication, etc. That means they play very significant design in a process of economic social needs. The functions performed by banks are changing according to change in cartridge holder and recently they are becoming customer centric and rig their functions. Generally the functions of commercial banks are divided into two categories viz.



primeval functions and the secondary functions. The following chart simplifies the functions of banks.

Primary Functions of Commercial Banks

Commercial Banks performs various primary functions some of them are given below
1. pass judgment Deposits : Commercial bank accepts various types of deposits from public especially from its clients. It includes saving(a) account deposits, recurring account deposits, fixed deposits, etc. These deposits are payable after a certain time period.
2. making Advances : The commercial banks provide loans and advances of various forms. It includes an over draft facility, coin credit, bill discounting, etc. They also give demand and demand and term...If you want to get a full essay, order it on our website: Orderessay



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