Question

Mention primary functions of commercial banks.

Answer 1

There are two primary functions of the commercial banks.

1. Accepting Deposits: The primary function of commercial banks is to accept deposits from the public. They accept deposits from every class and from every source.
2. Advancing of Loans: The second most important function of commercial banks is to make loans and advances. Commercial banks give loans and advances to businessmen, farmers, consumers and employers against approved securities.