This PPT prepared by Teacher Educator from Thiagarajar College of Preceptors Madurai for B.Ed Trainees.

1. COMMERCIAL BANK

3. • A commercial bank is a type of financial
institution that accepts deposits, offers
checking account services, makes various
loans, and offers basic financial products
like certificates of deposit (CDs) and
savings accounts to individuals and small
businesses.

6. Types of Commercial Bank

7. Primary Functions
I)Accepting Deposits
1.Savings Deposits
2. Current Deposits
Time Deposits
A)Fixed Deposits (FD)
B) Recurring Deposits (RD)
II)Granting Loans and Advances. III.Creation of
Credit
III) Creation of Credit

8. Secondary Functions
• Agency Functions
1)Transfer of Funds
2) Periodic Payment of Premiums, Rent, etc
3) Collection and Payment of Cheques
4) Acting as Executors, Trustees and
Attorneys
5) Conduct Share Market Transactions
6)Preparation of Income Tax Return
7) Dealing in Foreign Exchange
8) Acting as Correspondent

9. General utility functions
1)Issue of demand drafts and bankers’
cheques
2) Accepting Bills of Exchange on behalf of
Customers
3) Safety lockers
4) Letters of credit
5) Travellers cheques
6) Gift cheques
7) Reference service

10. Financial services
• Bank Assurance
• Merchant Banking
• Retail Banking (Personal Banking)
• Housing Finance
• Mutual Fund
• Venture Capital Fund
• Factoring

11. Electronic Banking Functions
1.NEFT - National Electronic Funds Transfer
2. RTGS - Real Time Gross Settlement Systems
3. Electronic Clearing Services (ECS)
4. CORE Banking Solutions
5. Internet Banking or Virtual Banking
6. Mobile Banking
7. Automated Teller Machine (ATM) and CDM Facilities
8. IMPS - Immediate Payment Service
9. Funds Transfer Through SMS
10. Debit Cards
11. Credit Cards