Explain the functions of commercial bank | Class 11 Business Studies Chapter Business Services, Business Services NCERT Solutions

Question:

Explain the functions of commercial banks.

Answer:

Commercial banks perform the following key functions:
- Accepting deposits: They accept savings, current, and fixed deposits from customers and provide interest on them.
- Providing loans: They offer various types of loans, including cash credit and overdraft facilities, earning interest in return.
- Fund transfer: Banks facilitate fund transfers through instruments like demand drafts, NEFT, and RTGS.
- Cheque clearing: They act as clearinghouses for cheques and other negotiable instruments.
- Value-added services: These include locker facilities, investment services, and utility bill payments.

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Welcome to the NCERT Solutions for Class 11 Business Studies - Chapter . This page offers a step-by-step solution to the specific question from Extra Questions, Question 4: Explain the functions of commercial banks.....

Explain the functions of commercial bank | Class 11 Business Studies Chapter Business Services, Business Services NCERT Solutions

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