State whether the following statement is True or False with reason:
Commercial Banks cannot give interest on deposits.
False, commercial banks can give interest on deposits.
Commercial banks perform various primary functions which includes accepting deposits from the public. On these deposits, the banks pay interest to the people depending upon the type of account deposits undertaken by them. For instance, in case of fixed account deposits, a high rate of interest is paid and in case of current account deposits, no or low interest is offered.