Commercial Bank 1. Receiving Deposits:
This is the main function of commercial banks to collect savings of individuals and firms. They offer different types of deposits for the facility of the customers.
i. Current Account or Demand Deposits:
Any amount can be withdrawn from this account any time without any notice. No interest is allowed on this type of account.
ii. Saving Account:
This type of deposit account which is usually held by the middle class group. The
saving account carries lower rate of interest.
iii. Fixed Deposit:
Amount cannot be withdrawn before the fixed future date in this type of deposit. High interest is allowed in fixed deposit which is different according to period.
2. Advancing Loans:
This is the important function of the commercial bank. Credit is given to the people in different ways.
(a.): Making Loans:
There are three types of loans given to borrowers.
i. Short Term Loans:
These loans are advanced for the period of six months to one year. High Interest rate
Is charged on this type of accounts.
ii. Medium Term Loans:
Loans from one to five years are called medium term loans.
iii: Long Term Loans:
Loans which are advanced for the period, more than ten years are long term loans.
(b.): Bank Overdraft:
Banks allows their trustful customers to draw more than the deposit they have in the
Bank. Bank charges interest on overdraft.
(c.): Cash Credit:
Bank also gives credit against immovable property and interest is charged by the
bank.
(d.): Discounting of Bills:
This is income source of bank to discount bills of exchange. They charge nominal
Interest and discount only reputed and clear bills of exchange.
Commercial Bank 1. Receiving Deposits:
This is the main function of commercial banks to collect savings of individuals and firms. They offer different types of deposits for the facility of the customers.
i. Current Account or Demand Deposits:
Any amount can be withdrawn from this account any time without any notice. No interest is allowed on this type of account.
ii. Saving Account:
This type of deposit account which is usually held by the middle class group. The
saving account carries lower rate of interest.
iii. Fixed Deposit:
Amount cannot be withdrawn before the fixed future date in this type of deposit. High interest is allowed in fixed deposit which is different according to period.
2. Advancing Loans:
This is the important function of the commercial bank. Credit is given to the people in different ways.
(a.): Making Loans:
There are three types of loans given to borrowers.
i. Short Term Loans:
These loans are advanced for the period of six months to one year. High Interest rate
Is charged on this type of accounts.
ii. Medium Term Loans:
Loans from one to five years are called medium term loans.
iii: Long Term Loans:
Loans which are advanced for the period, more than ten years are long term loans.
(b.): Bank Overdraft:
Banks allows their trustful customers to draw more than the deposit they have in the
Bank. Bank charges interest on overdraft.
(c.): Cash Credit:
Bank also gives credit against immovable property and interest is charged by the
bank.
(d.): Discounting of Bills:
This is income source of bank to discount bills of exchange. They charge nominal
Interest and discount only reputed and clear bills of exchange.
Commercial banks are the financial intermediaries of the economy. Most commercial banks provide the following services:
<<<<***>>>>
The functiions of a modern commercial bank can be classified under three heads:
1. Primary Functions;
a) Accepting Deposits.
b) Advancing of Loans
2. Secondary Functions
a) General Utility Services like safe deposit facilities, LCs, dealing in Foreign Exchange, etc.
b) Agency Services like collection of cheuqes, etc.
3. Services through Subsidiaries
a) Mutual Funds
b) Portfolio Management
c) Leasing
d) Housing Finance
e) Factoring services
4. Modern Functions
a) Telebanking
c) Tele-banking
d) internet Banking.
e) Bancassurance
f) 24X7 Banking Service, like ATM, transfer of funds (NEFT, RTGS,), etc.
M.J.SUBRAMANYAM, XCHANGING, BANGALORE
Commercial banks are the regular banks that provide basic banking facilities to its customers. Some of the facilities you can get from a commercial bank are:
a. Checking/Current account
b. Savings accounts
c. Internet/Mobile Banking
d. ATM Cards
e. Check Books
f. Deposit Accounts
g. Loans
h. Credit Cards etc.
functions of kenya commercial bank
to take money
A merchant bank is a bank which does commercial lending and business banking services, leasing and factoring for example
to provide loan to customers and other commercial banks. to check the functioning of commercial banks.
Accepting deposits,advances of loan ,credit creation
State Bank of Patiala is a subsidiary bank of State Bank of India. State Bank of Patiala (SBP), originally named Patiala State Bank, was founded on 17 November 1917. SBP was founded by Maharaja Bhupinder Singh, Maharaja of the princely state of Patiala of Undivided India. The functions of the Bank included the normal functions of commercial banks, as also some functions similar to functions of a central bank for the princely state of Patiala
What are Modern Functions of Commercial Banks? The following are the modern functions of a commercial bank: 1. Telebanking. 2. Issue of Debit and Credit Cards. 3. Net banking. 4. Sellling of Insurance products (Bancassurance) 5. Providing ATM facility. 6. SMS Alerts. 7. Rail/Air Ticket Reservation. 8. Electronic transfer of Funds. (NEFT,RTGS).
To license & supervise banks & hold commercial banks reserves & lend money to them.
Philtrust Bank, formally known as the Philippine Trust Company, is one of the oldest private commercial banks in the Philippines. They specialize in finance and insurance.
central bank does not accept deposit from customers whiles commercial bank does. central bank is responsible for issuing of currencies whiles commercial bank does not. central bank is accountable to the government whiles commercial bank is accountable to the share holders. central bank is not set up for profit but commercial bank is set up for profit. central bank is governed by an act of parliament whiles commercial bank is set up by an incorporation. central bank formulate monetary policies whiles commercial bank does not.
ordinary commercial bank
An expanded commercial bank is a type of financial institution that goes beyond the traditional functions of a regular commercial bank. While commercial banks primarily handle transactions such as deposits, checking account services, and loans for individuals and businesses, expanded commercial banks have additional capabilities. These extended functions allow them to offer a broader range of services to their customers.