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What is a commercial bank?

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प्रश्न

What is a commercial bank?

What is meant by the term commercial bank

विस्तार में उत्तर
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उत्तर

  1. A commercial bank is a profit-driven business that deals in money and credit. This is a financial institution that accepts public deposits and holds them in safe custody.
  2. Additionally, it provides credit to those in need by advancing money from deposits. It serves as a reason for saving in the economy.
  3. A bank serves as an account for household savings and interest-bearing loans for commercial and productive purposes.
  4. The Banking Companies Act of India defines Bank as “A Bank is a financial institution which accepts money from the public for the purpose of lending or investment repayable on demand or otherwise withdrawable by cheques, drafts or orders or otherwise.”
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संबंधित प्रश्न

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Central bank (RBI) connot accept deposit from the public.


State with Reasons whether the following statement is TRUE or FALSE.

Overdraft facility is given to saving account holders.


Distinguish between:

Fixed Deposit Account and Recurring Deposite Account.


Mention two differences between the Central Bank and a Commercial Bank. 


Choose the Correct Answer.

Which bank is not an Industrial Bank?


Explain the types of banks based on ownership patterns.


Distinguish between the Central Bank and the Commercial Bank.


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Which of the following banks regulate the supply of money in the economy?


Assertion: Central banks control credit.

Reasoning: Commercial banks issue bank drafts.


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Which type of bank is most closely associated with foreign trade finance and foreign exchange services?


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