Chapter commercial banks b.v.raghunandan 2

1.CHAPTER 2Commercial Banks2. PrimaryFunction s ReceivingDeposits Lending toPublic Investment Creation ofcredit3. Receiving Deposits Demand Deposits: Time Deposits:-Current Account-Fixed Deposit-Savings Bank -Cash CertificateAccount -Recurring deposit4. Lending to Public  Cash Credit Overdraft Discounting Bills of LoansExchange5. Investment Treasury Bills Government Bonds Bonds of Public Sector Units Money Market Instruments Corporate Securities Equity of RRBs and Co-operatives6. Creation of Credit Process of crediting the account of thecustomer for the loan sanctioned Act of drawing cheques on theaccounts Recipient or payee depositing thecheque into his account7. Secondary Functions-Agency Services Collection of DepositoryIncome & ParticipationInstruments Safe-Custody Payments Facilities Purchase & Sale of  Tax ComplianceSecurities  Merchant Banking Investment  Factoring ServicesCounselling Remittance ofFunds8. General Utility Services Trustee, Attorney &  UnderwritingAdministrator  Lease financing Safe Deposit PublicationLockers  Performance Travellers’ Cheques Guarantee Acting As Referees Dealing in Foreign Letters of Credit Exchange9. Changing Role of CommercialBanks Housing Finance Electronic Transfer Sale of Mutual of Funds: NationalFund Units level numbering of Bancassuranceaccounts, MICR cheques,At Par Issue of CreditCheques, mobileCards/Smart Cardsbanking & Internet Issue of ATM/Debit BankingCards10. Electronic Banking ATMs RTGS Tele-banking Online Payment Any-time Banking Mobile Banking Any-where banking  Internet Banking Shared PaymentNetwork System11. THANK YOU