What is commercial bank? Types, Functions, Importance of Commercial Bank

Hello friends, in today's article, we are going to talk about Commercial Bank like what is Commercial Bank, types of Commercial Bank, functions of Commercial Bank In this article, we will know in detail about the importance of Commercial Bank etc. After reading this article, you will not need to read other articles, so let's start without any delay.

What is commercial bank?

What is commercial bank?

  What Is Commercial Bank  - Commercial Bank which is also called commercial bank, business bank, business bank by other names. At present, everyone has an account in some or the other bank, but there are many people who are asked what is Commercial Bank, then they would not know at all. If you also want to know about commercial bank in detail, then it is a good thing that you have come to the right place. You are going to get complete information about Commercial Bank.

What is commercial bank?

  What Is Commercial Bank- Talking about commercial bank, it is a financial institution that accepts deposits from the general public and provides loans to the general public as well as many other debit cards, credit cards. Also provides facilities like check book, passbook.

What is commercial bank?

What Is Commercial Bank- Commercial banks are called those banks whose main task is to deposit the public's money safely and to provide different types of loans to the needy people according to their needs. Commercial banks accept people's money as deposits and lend them as loans when needed. The main objective of a commercial bank is to earn profit.

Types of Commercial Bank

Type of Commercial Bank In hindi- Talking about the type of Commercial Bank in India, it is mainly of 4 types.

1.   Public Sector Bank 
2. Private Sector Bank
3. Regional Rural Bank
4. Foreign Bank 

1. Public Sector Commercial Bank 

        Public Sector Commercial Bank is also called Nationalized Bank or Government Bank, these banks have the maximum share of the government. That is, the government's stake in these banks is more than 50%. At present there are 12 Public Sector Commercial Banks in India whose names are given below.

1. State Bank Of India
2.   Punjab National Bank
3.   Indian Bank
4. Canara Bank Bangalore
5. Union Bank Of India
6.   UCO Bank Kolkata
7. Bank Of India
8.   Punjab And Sind Bank
9. Central Bank Of India
10.   Bank Of Baroda Gujarat
11. Bank Of Maharashtra
12.   Indian Overseas Bank

2. Private Sector Commercial Bank (Private Sector Banks)

      Private Sector Commercial Bank is operated by a private person and most of the stake in this bank is not with the government but with the shareholders of the bank. At present there are 21 private sector banks in India whose names are given below.

1. HDFC Bank
2. ICICI Bank
3. Axis Bank
4. City Union Bank
5. DBC Bank Mumbai
6.   Jammu and Kashmir Bank
7. Bandhan Bank
8. IDBI Bank
9. Dhanlaxmi Bank
10. Induslnd Bank
11. YES BANK
12. South Indian Bank
13. Nainital Bank
14. Kotak Mahindra Bank
15. RBL Bank
16. CSB Bank
17. Federal Bank
18. IDFC First Bank
19. Karnataka Bank
20. Karur Vysya Bank
21. Tamil Nadu Mercantile Bank

3. Regional Rural Commercial Bank (Regional Rural Bank)

       Regional Rural Commercial Bank (Regional Rural Bank) are banks operating at the regional level in different states. Whichever state you live in, there will definitely be one rural bank or the other, these are called regional rural banks. These banks have been established for the convenience of the weaker sections. It is operated by the government or public sector banks, currently a total of 43 such banks are working in India. The names of some of which are given below.

1. Kerala Gramin Bank
2. Madhya Pradesh Gramin Bank
3. Kerala Gramin Bank
4. Narmada Jhabua Gramin Bank
5. Kerala Gramin Bank
6. Madhya Pradesh Gramin Bank
7. Kerala Gramin Bank
8. Narmada Jhabua Gramin Bank
9. Jammu and Kashmir Gramin Bank
10. Andhra Pradesh Rural Development Bank
11. Assam Gramin Bank
12. Uttar Bihar Gramin Bank
13. Chhattisgarh State Rural Bank etc.

4. Foreign Commercial Bank (Foreign Bank)

      The banks whose headquarter is abroad and its branches are present in India are all called Foreign Commercial Banks. At present there are 46 foreign commercial banks operating in India. Below are the names of some of the main foreign banks.

1. Abu-Dhabi Commercial Bank Limited
2. Bank of America
3. Bank of Bahrain and Kuwait
4. Sonali Bank Limited
5. Australia and New Zealand Banking Group
6. Bank of China
7. DBS Bank India Limited

commercial bank functions

Functions Of Commercial Bank In Hindi- Usually commercial bank performs three types of functions.

1. Main Function
2. Secondary Function
3. Social Function

1. Main Functions of Commercial Bank

Main functions of Commercial Bank In Hindi- Commercial bank does two types of work in its main function- 1. Accepting deposits 2. Giving loan

1. Accepting Deposits

         First of all, the commercial bank accepts deposits of people's money in the main work. And to deposit the money, the bank opens many types of accounts of the people. And people deposit money in their account to keep their money safe, you will get detailed information about those accounts by clicking on the link given below.

1. Opening Savings Account 
2. Current Account Opening
3. Opening Fixed Deposit Account 
4. Opening Recurring Deposit Account 

  2. Providing Credit

        When the bank accepts deposits from the people, then in order to earn more money from that, the bank gives loan to the people and in return takes interest from the people and this is the source of its earning. Banks earn interest by providing loans to people in the form of personal loans, home loans, overdrafts, etc.

2. Secondary Function

            The bank provides many facilities to its customers in its secondary work, such as collecting customers' cheques, interest etc. as well as paying them, providing locker facilities to customers, commercial banks providing services to their customers. It also deals with the buying and selling of securities. There are many other types of work that the bank does under this.

3. Social Function

          The bank works to create capital under its social work, which helps in the development of any country. Provides loans at reasonable interest rates so that people can meet their needs.

What is the importance of commercial bank?

        The contribution of the central bank in any country is equal to the importance of a commercial bank in the development of that country and in controlling the country's banks. For example, Netbanking, mobile banking, use of check book and ATM card, cash withdrawal from ATM machine, online shopping, bill payment through swap machine, etc. are all due to commercial banks. Commercial banks also benefit the country's economy by opening their branches abroad.

Which is the largest commercial bank in India?

       Talking about India's largest commercial bank and oldest commercial bank, that bank is State Bank of India. Which was established on 1 July 1955. Which is currently working in 24000+ countries and abroad and has around 60 thousand ATMs and has more than 42 crore customers.

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