What is commercial bank and what are the functions of a commercial bank?
As per Negotiable Instrument Act 1881 and Bank Company Act 1991,
“Banker means the accepting, for the purpose of lending or investment, of deposit of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, and order or otherwise”.
A commercial bank is a type of financial institution and intermediary. It is a bank that lends money and provides transactional, savings and money market accounts and that accepts time deposits.
Prof. Rozer,
“the bank which deals with money and money’s worth with a view to earning profit is known as commercial bank”
