In this post we are going to discuss about commercial banks

๐Ÿ“Œ What are commercial banks

๐Ÿ“Œ Definition of commercial banks

๐Ÿ“ŒWhat are the features of commercial banks

Define Commercial banks | features of Commercial banks

Commercial banks: 

In India, commercial banks are the country’s oldest, largest, and fastest-growing financial intermediaries. Commercial banks are becoming an integral part of our daily lives. Farmers, businesses, entrepreneurs, governments, and other elements of society rely on commercial banks to meet their demands.Commercial banks help a country’s economy grow faster by repurposing scarce financial resources for beneficial purposes. As a result, banking is the foundation of an economy’s economic, industrial, and agricultural development.The banks are intertwined with all commercial and industrial activity. Even for a day, the cessation of banking activities is unthinkable. If the banks stop operating for a few days, the country may be in the midst of an economic crisis. They are the most major depositors of public savings and the most important financing disbursers.

Q: Define Commercial Banks. Discuss the Features of Commercial banks.

Commercial Banking : Meaning

A commercial bank is a financial organisation that provides services such as receiving deposits, lending money, and offering basic investment products. It can also refer to a bank or a section of a large bank that specialises in deposit and loan services.A commercial bank is a financial organisation that accepts deposits, provides checking account services, makes business, personal, and mortgage loans, and provides basic financial products such as certificates of deposit and small accounts to individuals and small businesses.

Define Commercial banks | features of Commercial banks

Features of commercial bank :

1. Dealing in Money: A bank is a financial institution that deals with other people’s money, which is money that is provided to customers in the form of deposits.

2. Individual or firm or company : A bank might be a single person, a corporation, or a joint stock business. A banking firm is one that is involved in the banking industry.

3. Acceptance of Deposits : A bank collects money from customers in the form of deposits, which are usually payable on demand or when a set length of time has passed.

4. Provide safety to money : A bank ensures the protection of its customers’ funds. It also serves as the custodian of its customers’ funds.

5. Advancing Loans : A bank lends money to people who need it for various reasons in the form of advances or loans. Banks can lend money to the general public to meet their wants and requirements.

6. Payment and withdrawal : Cheques and drafts allow a bank’s customers to make quick payments and withdrawals.It also replenishes the money supply. Cheques, draughts, and other forms of money circulation are used.

7. Agency and utility sevices : A bank provides its customers with a variety of banking services, including basic facility services and agency services.

8. Profit and service Orientation: As a financial intermediary, a bank has a service-oriented approach for making profit.

9. Ever Increasing Functions: Banking is a method that has evolved over time. In terms of functions, services, and activities, a bank expands and diversifies on a regular basis.

10 . Banking Business: A bank’s primary job should be to conduct banking operations, which should not be a subsidiary of any other business.

11. Name identity : A bank should always have the word “bank” in its name so that the general public understands that it is a bank that deals in money and debts.

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