Functions of commercial bank are as follows:
1. Accepting deposits: Commercial bank accepts deposits from the public. People can deposit their cash as chequeable deposit or non chequeable deposit.
2. Advancing loans: Banks advance loans to the producers for investment* expenditure and to consumers for consumption expenditure. By offering loans for investment, the banks contribute to the supply of goods and services in the economy. By offering funds for consumption banks contributes to the demand for goods and services in the economy.
3. Other functions: Commercial bank performs various other functions also apart from lending and accepting deposits. It collects cheques and bills for the people. Payment for various installments of insurance policies, locker facility, collection of statistical data, and transfer of money.
