2.Commercial Banks.pptx functions of commercial bank

Commercial Banks.pptx functions of commercial bank

1. Commercial banks Dr.S.Jayanthi Sobhana Asst.Professor ,Department of commerce PA Sri Ramakrishna College of Arts & Science

2. Commercial banks' main functions are accepting deposits from the public and providing loans and credit to individuals and businesses.  They also perform secondary functions like facilitating payments, offering agency and utility services (such as safe deposit boxes and money transfers), and providing investment and foreign exchange services.  

3. Primary functions Accepting deposits:   Banks take deposits from the public in various forms, including savings accounts, fixed (time) deposits, and current accounts.  Providing loans and advances:   They provide credit to customers in the form of loans, cash credit, and overdrafts, which is a primary source of profit for the bank. 

4. Secondary functions Agency services: Acting as an agent for customers, such as collecting bills, paying insurance premiums, and managing investments.  Acting as a referee or guarantor. 

5. General utility services: Providing locker facilities for safe custody of valuables and documents.  Issuing traveler's cheques and letters of credit.  Offering services like ATM access, credit, and debit cards.  Facilitating payments through various instruments like checks, electronic transfers (like NEFT, RTGS, UPI), and online banking.