Commercial banks - banking institutions, Finance Basics

Commercial Banks - Banking Institutions

These are financial institutions such accept deposits of money from the universal public, safeguard the deposits and create them available to their owners when necessitate arises.

Establishment

Established beneath the Banking Act , 1968.

Functions of Commercial Banks

1. Accepting deposits

2. Gathering money on behalf of customers and credit this money in customers' accounts

3. Transferring of money from individual accounts to the other person's accounts during credit transfer.

4. Supply currency - foreign currency obtainable on commercial bank.

5. Lending money, the banks lend loans to customers from that they earn interest.

6. Facilitate International Trade - issue letters of credit and undertake foreign replace transactions on behalf of their customers.

7. Act like executives and trustees of wills whether one wants to make a will he or she writes single and appoints a commercial bank like the executor and trustee of the bill.

8. Provision of safer maintains of valuables like title deeds, certificates and gold.

9. Creation decision affecting development. Before advancing loan to a prospective customer, commercial banks are extremely careful and strict hence like to provide loans to invest in viable sector of the economy.

10. Provision of saves for maintains money and other valuables over night.

Posted Date: 2/1/2013 2:06:36 AM | Location : United States







Related Discussions:- Commercial banks - banking institutions, Assignment Help, Ask Question on Commercial banks - banking institutions, Get Answer, Expert's Help, Commercial banks - banking institutions Discussions

Write discussion on Commercial banks - banking institutions
Your posts are moderated
Related Questions
Tests of Term Structure of Interest Rates Theories Various tests have been conducted mainly in USA and they show that all the three (3) theories have some validity and therefo

Liquidity Ratios - Ratio Analysis It also identified as working capital ratios.  They show capability of the firm to meet its short term maturing financial obligation/recent l

what is bank draft?How it can be prepared?

Joint Stock Companies - Types of Business Organisations Initiators contribute to the capital support of those companies via the purchase of shares of those companies. These co

how can I get?

How often does the "on the run" tsy change?

FASB Assignment

Cum. And Ex. - Terms Used in Capital Market Authority           These prefixes are written in front of other words as like capital, rights and dividends to qualify them."Cum" i

A current radio advertisement states that the average American household has an average credit card debt of $25,000. Based on an APR (Annual Percentage Rate) of 18% (common for cre

What are the significant points of Fiscal Policy? Significant points of Fiscal Policy: a. Meaning of fiscal policy and why this is an significant tool into managing economic