Commercial Banking - What Is It?

1
Commercial Banking

• What Is It?

Presented By, Kevin Flores, Banks IFSC Codes.
http//banksifsccodes.com/
2
What Are Commercial Banks?

• Commercial bank provides services such as making
  business loan, accepting deposit, offer basic
  investment products.
• It mostly deals with deposit, loan from
  corporation and large business.
• Banks are well regulated by RBI and monitor by
  RBI members about-how they are organized and also
  the service they will provide.
• RBI provides unique IFSC code to differentiate
  each and every branch of all banks.

http//banksifsccodes.com/
3
Functions of A Commercial Bank

• The main functionality of bank is allowing people
  to deposit and provide them loan.
• Apart from this they are so many functions are
  performed by bank. They are
• Accepting deposits
• Providing loan
• Investment of Funds And Over Draft
• Agency Functions

http//banksifsccodes.com/
4
1. Accepting Deposits

• The more important function of commercial banks
  like the Bank of India branches is allowing
  people to deposit.
• According to needs and economic status they are
  maintain saving with the banks.
• Types of deposits
• Current deposit
• Saving deposit
• Fixed deposit

http//banksifsccodes.com/
5
2. Providing Loans

• Next important function of commercial bank is to
  providing loan for the customer.
• Banks charge interest for the borrower.
• In modern bank, at the time of advancing loan,
  they demand proper security.
• General types of loan from bank are
• Cash credit
• Demand loans
• Short-term loan

http//banksifsccodes.com/
6
3. Investment of Funds And Over Draft

• Banks invest their fund in three types of
  securities
• Government securities
• Other approved securities
• Other securities
• Government securities includes both state and
  central government such as national saving
  certificate, treasury bills etc..
• Over-draft
• Advance Loan amount to the customer is for
  certain amount. When it exist, bank will demand
  security from the customer and charge high
  interest.

http//banksifsccodes.com/
7
4. Agency Functions And Miscellaneous

• Banks collect drafts, bills of exchange, cheques
  and dividends share for their customers.
• Banks make payment for the clients and at time
  exchange is accepted.
• Banks pay insurance premium of their customers.
• Banks arrange locker to safe guard customers
  silver, gold and legal documents.
• Banks undertake to purchase and sell foreign
  exchange.
• Bank issue letters of credit.

http//banksifsccodes.com/