Different types of banks

DIFFERENT TYPES OF BANKS

Commercial Banks

Commercial banks are the banks that accept money in the form of deposits from the public and give loans and advances to its customers by charging interest. They mobilize small savings and promote the growth of trade and commerce. Generally, commercial banks lend money for a short period only. They only provide working capital to the organizations. But in recent times commercial banks are providing long-term capital also to the organizations.

There are several types of deposits which are accepted by the commercial banks like

⦿ Savings Deposits
⦿ Current Deposits
⦿ Fixed Deposits
⦿ Seasonal Deposits
⦿ Recurring Deposits, etc

The Commercial banks give different types of loans and advances to the businessmen like

⦿ Cash Credits
⦿ Overdrafts
⦿ Loans
⦿ Discounting Bills