Question

Explain the changing role of commercial banks in indian economy

Answer 1

The general role of commercial banks is to provide financial services to general public and business, ensuring economic and social stability and sustainable growth of the economy. ... The study portrays how loans and credit affect the GDP and consequently the level of economic growth of India.

Answer 2

The changing roles of commercial banks in the Indian economy are as follows:

• The commercial banks in India have been accelerating the rate of capital formation by encouraging the practice of saving.
• They have been a medium to develop internal and external trades.
• Commercial banks have their branches in rural areas too. This promotes the monetization of the economy and provides the provision of finance and credit.
• New innovations and start-ups are financed by these commercial banks.