Functions of Comercial Banks.pptx Primary Functions (Banking Activities)Secondary Functions (Supplementary Functions)

A commercial bank is a financial institution that accepts deposits from the public and provides loans and other financial services to individuals and businesses. They are profit-making institutions, earning money through interest on loans and fees for various services. Commercial banks play a vital role in the economy by facilitating financial transactions, providing credit, and enabling investment. 
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1. DR JENIFER THANGAM J DRASSISTANT PROFESSOR SRI RAMAKRISHNA COLLEGE OF ARTS & SCIENCE COMMERCIAL BANK

2. COMMERCIAL BANKS MEANING A commercial bank is a financial institution that accepts deposits from the public and provides loans and other financial services to individuals and businesses. They are profit-making institutions, earning money through interest on loans and fees for various services. Commercial banks play a vital role in the economy by facilitating financial transactions, providing credit, and enabling investment. 

3. Roles & Functions of Commercial Banks

4. Functions of Modern Commercial Banks Primary Functions (Banking Activities) Acceptance of Deposits Savings Bank A/c Current A/c Fixed Deposit A/c Recurring Deposit A/c Discounting of Bills Granting of Loans Loan Cash Credit Overdraft

5. Secondary Functions (Supplementary Functions) A. Agency Services The banker undertakes to collect cheques, bills, and promotes for customers. The standing instructions of customers such as payment of telephone bills, insurance premium, etc., are done. Collecting dividends and interest on various securities. Purchasing or selling securities as per customer's instruction. Banker also acts as trustee or executor of will for the customer. Undertakes to transfer funds from one branch to another. Acts as an agent or correspondent for the customer. Disperses salary to employees on instruction from employer. Issues credit cards, both in rural and urban areas.

6. General Utility Services . On permission from RBI, the bank purchases or sells foreign exchange. On behalf of importer, the banker issues Letter of Credit to the exporter. The banker acts as “drawee in case of need” by accepting bills on behalf of customers. The bank undertakes merchant banking activity such as underwriting of shares and debentures of companies. It provides safe deposit vaults in which customers can keep their valuables. It accepts income tax on behalf of RBI. On behalf of certain customers it acts as referee by which the creditworthiness of the customer is determined. The bank also supplies data and trade information required by businessmen. On behalf of the government, the bank is able to mobilize a huge amount of foreign exchange for investing in infrastructure. Global Deposit Receipt of companies is promoted by banks .

7. LIST OF COMMERCIAL BANK IN INDIA