Commercial Banks

Definitions of commercial Banks While defining the term banks it is taken into give-and-take report that what type of task is performed by the banks. Some of the noted definitions atomic number 18 given below: concord to Prof. Sayers, A bank is an asylum whose debts ar widely recognized in settlement of another(prenominal) peoples debts to each other. In this definition Sayers has accent the transactions from debts which be raised by a fiscal institution. According to the Indian Banking Comp all Act 1949, A banking telephoner means any company which transacts the business of banking . Banking means judge for the purpose of lend of investment of deposits of money from the public, payable on gather up or other wise and eviscerate able by cheque, limn or otherwise. Functions of commercial message Banks Commercial bank being the monetary institution performs diverse types of functions. It satisfies the financial needs of the sectors such as agricult ure, industry, trade, communication, etc. That means they fly the coop very significant design in a crop of economic social needs. The functions performed by banks argon changing consort 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 vicarious functions. The following chart simplifies the functions of banks. Primary Functions of Commercial Banks Commercial Banks performs versatile primary functions some of them are given below 1. outpe rform judgment Deposits : Commercial bank a! ccepts various types of deposits from public particularly 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. make Advances : The commercial banks provide loans and advances of various forms. It includes an over draft facility, run into credit, bill discounting, etc. They also give regard and demand and term...If you want to get a full essay, order it on our website: BestEssayCheap.com

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