Types of Commercial Banks

Central Bank:
Central bank of a country is the leading statutory institution
in the money market of a country which acts as a leader of
the money market, supervising, controlling and regulating the
activities of commercial banks and other financial institutions
Commercial banks :
A commercial bank is a financial institution which accepts
deposits against which cheques can be drawn, lends money
to industry, trade and consumers and renders number of
other services useful to the entire community.
Industrial Banks:
They provide medium and long terms loans and supply fixed
capital to the industrial concerns by subscribing to the shares
and debentures of the industrial enterprises. They promote
new industrial concerns and provide technical guidance in the
management.

Exchange Banks:
They are a type of commercial banks which primarily
engage in transaction involving foreign exchange . They
specialize in financing import and export trade in foreign
exchange transaction.
Co-Operative Banks:
These banks are institutions formed on the basis of coopeation to extend credit facilities to farmers . They
accept money on deposits and make loans to the
members at low rate of interest
Agricultural Land Mortgage Banks:
These banks provide term credit to agricultural against
the security of their land for purchasing tools and
implements, cattle and for financing permanent
improvements with a view to increase yield from land.
Indigenous Banks:
These are unrecognized operations in receiving deposits
and lending money. These banks comprise chetties in

Function of Commercial Banks:

1. Accepts of Deposit:
Fixed deposit Account
Current Account
Saving bank account
2. Advancing of Loans:
Making ordinary Loans
Cash credit
Overdraft
Discounting of bills of exchange
3. Promote the use of cheque
4. Agency functions of the Bank
Transfer of funds
Collecting customers funds
Purchasing and sale of share and securities for its customers
Collecting dividends on the shares of the customers.
Payment of premium
The bank acts as the trustee and the executors
Income tax consultant
5. Purchases and sale of foreign exchange
6. Financing internal and foreign trade
7. Other function of the Bank
Safety custody of valuable goods

Issuing of traveler's cheque

Giving information about its customers
Collection of statistics
Underwriting of company debenture
Accepting bills of exchange on behalf on customers
Giving advise on financial matters.