Functions of Commercial Banks

This is a video on the functions of Commercial Banks. Commercial Banks have become an indispensable part of any economy. In all the countries of the world they play a very crucial role, especially in the economic activities. Without them, all the economic activities will come to a standstill. Commercial Banks act as the lubricants that drive the economic wheel wagon.

Functions of commercial banks can be broadly classified into Primary Functions and Subsidiary Functions. Primary Functions consist Accepting Deposits such as Saving Deposits, Current Account Deposits and Fixed Deposits, and extending loans such as Loans and Advances, Overdraft, Discounting of Bills, Cash Credit and so on. Subsidiary Functions include Credit Creation, Investment on Funds and Securities, Loans for Foreign Trade, Transfer of Funds, Making Payments, Acting as trustees, Providing Safe Deposit Lockers, Merchant Banking, Hire Purchase services and so on.
banks also provide Credit cards, debit cards, ATM services and many other diversified services.

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