Question

Function of commercial bank​

Answer 1

Answer:

Top 5 functions of commercial bank:-

1. Accepting deposits
2. Advancing loans
3. Discounting bills of exchange or hundies
4. Transfer of money

5. Miscellaneous function

hope this helps ..

Answer 2

Commercial banks are financial institutions which provide normal banking services to the customers such as loan services,savings account,deposit accounts,various investment and savings schemes,locker facilities and so on.

Explanation:

Main functions of commercial banks:-

1. Acceptance of deposits:Commercial banks usually accepts various types of financial deposits from the customers depending on the type of the deposit.Some of the examples of bank deposits include savings deposits,which are small deposits by individual or households to induce savings in the economy,time deposits,a financial deposit for a fixed time period and granting higher interest rate than savings deposit and current deposit,or deposit without any interest rate and long term deposit plans.
2. Lending activities:Commercial banks also generally provide various lending services such as loans to the customers such as home loan,educational loan,car loan and such.
3. Secondary functions:Some of the subsidiary or secondary functions or objectives of commercial banks include issuing drafts and cheques,providing insurance premiums,rents and interest payments,engaging in stock exchange activities in stock and security markets,preparing and claiming tax returns and so forth.