The Function of Commercial Banks in Promoting Financial Inclusion in India

Abstract

A commercial bank is a type of bank that provides services such as accepting deposits, loans, and offering basic
investment products that is operated as a business for profit. It can also refer to a bank, or a division of a large
bank, which deals with large /middle-sized business to differentiate it froma retail bank and an investment bank.
A Bank is a financial institution that provides banking and other financial services to their customers. A bank is
generally understood as an institution which provides fundamental banking services such as accepting deposits
and providing loans.Indian Banking Regulation act 1949 section of the Banking Regulation Act 1949 Banking is
defined as: “Accepting for the purpose of the landing of investment of deposits of money from public repayable
on demand or other wise and withdraw able by cheques, draft, order or otherwise.”A bank is an institution whose
debts are widely accepted in settlement of other people's debts to each other." In this definition Sayers has
emphasized the transactions from debts which are raised by a financial institution.Commercial bank being the
financial institution performs diverse types of functions. It satisfies the financial needs of the sectors such as
agriculture, industry, trade, communication, etc. That means they play very significant role in a process of
economic social needs.The functions performed by banks are changing according to change in time and recently
they are becoming customer centric and widening their functions. Generally the functions of commercial banks
are divided into two categories viz. primary functions and the secondary functions.