Definitions [1]
Definitions: Commercial Banks
- “A bank collects money from those who have it to spare or who are saving it out of their incomes and it lends this money to those who require it.” — Crowther
- “Bank means accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft or otherwise.” — According to Indian Companies Act, 1949
- Banking Regulation Act of 1949: “Banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, demand draft, order or otherwise.”
- Prof. Cairncross: “A bank is a financial intermediary, a dealer in loans and debts.”
Important Questions [5]
- Distinguish between: Demand deposit and Time deposit
- Identify and explain the concept from the given illustration: Tina deposited a lumpsum amount of ₹ 50,000 in the bank for a period of one year.
- Identify and explain the following concept. Lucy deposited a Lump sum amount of ₹1,00,000/- in the Bonk of India for the period of one year.
- Study the following table, figure, and passage, and answer the questions Commercial banks act as intermediaries in the country's financial system to bring savers and investors together.
- Distinguish between: Recurring deposits and Fixed deposits
