Commercial Bank

Contents 1. Introduction. 2. Commercial Bank 3.functions of commercial bank 4. Conclusion

Division of bank On The Basis Of Domicile: (1) Domestic Bank (2) Foreign Banks On The Basis of Second Schedule of RBI Act: Scheduled Bank (2) Non-Scheduled Bank On The Basis of Ownership: Public Sector Banks (2) Private Sector Banks (3) Co-operative Banks (4) Regional Rural Banks

Commercial Banks Industrial Banks Agricultural Banks Exchange Banks Saving Banks Indigenous Banks Central Bank

What exactly is a Commercial Bank?

Commercial Banks 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 Deposit Account Fixed Deposit Account Recurring Deposit Account Current Deposit Account Flexible Deposit Account (ii) Credit Deployment: Money at Call Cash Credit Overdraft Discounting Bills of Exchange Term Loan (iii) Credit Creation

Collection & Payment of Credit Instruments 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

General Utility Functions Locker Facility Traveller’s Cheque Facility Merchant Banking Service Acting as Underwriters Acting an Information Provider Acting as a Referee Development Functions Capital Formation Rural Development Priority Sector Advances Creating Employment Assistance of Money & Capital Market