3. Definition:
A commercial bank is a profit-based financial institution that grants loans, accepts
deposits, and offers other financial services, such as overdraft facilities and
electronic transfer of funds.
In other words, commercial banks are financial institutions that accept demand
deposits from the general public, transfer funds from the bank to another, and earn
profit.
Commercial banks are the most important components of the whole banking system.
4. Types of Commercial Bank:
Public Sector Banks: In India, public sector banks operate
under the guidelines of Reserve Bank of India (RBI). Eg:- SBI,
Corporation Bank, etc.
Private Sector Banks: These banks are registered as
companies with limited liability. Eg:- ICICI, HDFC, etc.
Foreign Banks: Banks whose headquarter are in a foreign
country. Eg:- HSBC, Citibank, etc.
5. Functions of Commercial Banks:
Functions of Commercial Bank can be broadly divided into two
categories:
(a) Primary functions: Accepting Deposits, Advancing Loans, etc.
(b) Secondary functions: Collecting cheques, Collecting incomes, Paying
expenses. General utilities (providing locker, dealing in foreign exchange,
transferring funds, etc.)
Other functions: E-Banking (Include services, such as debit cards, credit cards,
and Internet banking.)
6. Primary Functions:
Acceptance of deposits.
Advancing loans.
Creation of credit.
Clearing of cheques .
Financing foreign trade.
Remittance of funds.
8. Other Functions:
Creating Money
Electronic Banking
Credit card
Debit card
Internet & Mobile Banking
9. Top ranking Commercial Bank in
India:
State Bank of India
ICICI Bank Limited
Punjab National Bank
Canara Bank
Bank of Baroda
Bank of India
Union Bank of India
Central Bank of India
Indian Overseas Bank
Oriental Bank of Commerce
HDFC Bank Limited
10. Conclusion:
Have been called upon to help achieve certain Socio-economic objectives laid
down by the state.
Used to sub-serve the national policy objectives of reducing inequalities of
income and wealth, removal of poverty and elimination of unemployment in the
country.
In the modern world, banks are to be considered not merely as dealers in money
but also the leaders in money but also the leaders in economic development.
