Banks are one of the pivots of regular life. Have you ever been to one? Are you aware of the functioning of a bank? Banks have developed around 200 years ago. It performs twin tasks of accepting deposits from members of public and make advances to needy people of the society. Banking transactions are socially and legally approved. The primary functions of a commercial bank may be listed as (1) Accepting Deposits (2) Making Advances (3) Credit creation.
A commercial bank also has extremely important General Utility Functions for its account holders that include : Provide safety locker facility, Provide money transfer facility, Issue traveler’s cheque, To act as referees, Provide merchant banking facility.