Advertisements
Advertisements
Questions
Mention two necessary conditions for a financial institution to become a commercial bank.
What are the two essential conditions for a financial institution to become a bank?
Answer in Brief
Advertisements
Solution
There are two essential functions that a financial institution must perform to become a commercial bank.
-
Acceptance of demand deposits with cheque facilities: This means the bank must accept deposits that can be withdrawn by the depositor at any time, often through cheques or other means like ATMs or electronic transfers.
-
Lending: The institution must engage in lending money to individuals, businesses, or other entities, generating interest income.
shaalaa.com
Is there an error in this question or solution?
