A commercial Bank is that financial Institutions which accept deposit form the people and offers loans for the purpose of Consumption or Investment.
Function of a Commercial Bank :
Two important functions of a Commercial Bank are:-
(i) Accepting Deposits: A Commercial Bank accepts deposits from the public. People can deposit their cash balances as cheque able deposits or non-chequeable deposits.
(ii) Advancing Loans:- A bank advances loans both for productive purposes as well as Consumption purpose. By advancing loans through demand deposits, commercial banks contribute to the supply for money in the economy