Q.Define Commercial Bank.

A commercial bank accepts deposits repayable on demand and lends money for profit, acting as an intermediary between savers and borrowers.

A commercial bank is an institution that deals in money and credit. It accepts deposits from the public, keeps them safe, and uses these funds to grant loans and advances to traders, farmers and industrialists, earning profit from the gap between the interest it pays on deposits and the interest it charges on loans.

As per the Indian Banking Regulation Act, 1949, banking means "accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft or otherwise."

Key features:

• Deals in money and credit.
• Accepts demand deposits and time deposits. …