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We bring you the complete and important daily Current Affairs of  April 2020 Quiz to achieve more marks in Banking, Insurance, UPSC, SSC, CLAT, Railways and all other competitive Exams. We prepare it based on our daily current affairs.Hope you like it.Current Affairs of March 2020 with Latest Current affairs March 2020 PDF for preparation of Bank Exam – PO & clerk, SSC, Railways & Insurance. 

Banking is not anymore, just opening a Current or Savings Account. Today financial product and its market is one of the most sought after careers for aspirants. Banking Awareness forms an important part of the syllabi in IBPS, SBI & Other Exams. Learn revise & Practice Series has been compiled with close consideration of the exam pattern and needs of the aspirants. It starts from fundamental concepts and gradually reaches the higher level concepts of utility.

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Commercial Bank is an institution which collects surplus funds from the public safeguards them, and make available to the true owner of the fund when required.


Commercial banks are of two types

1) Scheduled banks. The banks which are included in Second Schedule of Reserve Bank of India Act 1934 are schedule banks RBI includes only those banks under this schedule which fulfill the criteria laid down under Section 42(6/a) of RBI Act 1934. Every schedule bank enjoys two principle facilities

. It becomes eligible for debts/loans at the bank rate from RBI

. It automatically acquires the membership of clearing houses

At present there are 22 Public Sector banks, private and foreign banks and 19 nationalized banks.

• In 1969, nationalization of 14 banks was done

. In 1980, nationalization of 6 banks was done.

Later on in 1993 New Bank of India merged with Punjab National Bank. Thus at present there are 19 Nationalized banks in India.

In year 2014 Bandhan Bank and IDFC get licensed by RBI in this category

2) Non-Scheduled banks. The banks which are not included in Second Schedule of Reserve Bank of India Act 1934 are non-scheduled banks.


The functions of the Commercial Banks can be broadly classified into three parts.


1. Accepting Deposits-Deposits constitute the major source of funds for the banks. Hence, the main function of a commercial bank is acceptance of deposits from the public. The deposit must be of money and not of other assets Commercial Banks pay interest on the deposits to mobilize the savings and to hold deposits

People can deposit their cash balances in the following accounts as per their requirement

Fixed Deposit Account

Current Deposit Account • Saving Deposit Account • Recurring Deposit Account

2 Advancing Loans-Another main function of the bank is to advance loans. A certain part of the cash received by the banks as deposits is kept in the reserve and remaining is giving as loan

Banks advance following types of the loan:

• Money at call. It is the money lent for a very short period generally from 1 to 14 days Overdraft-Overdraft means allowing the borrower to over draw his current balance. This facility is available for short term to reliable customers

• Discounting of Bills. It means advancing a loan against a promise of repayment in the future.

3. Creation of Credit- When a bank advances a loan or credit, it does not lend cast but opens an account in favour of the customer and credits the amount to the account. It creates a claim against itself which is acceptable by the public for settlement of debts In this process the bank creates money

4. Cheque System of Payments of Funds-A choque as a negotiable instrument is the most popular credit instrument used by the customer to make payments Now days it become main credit instrument in the banking world


Secondary Functions can be classified into two types

1 Agency Functions-Banks renders a mmber of useful services to the customers apart from performing the primary functions Commercial banks act as agents of their customers in following ways

a) Collection and payment of credit-The commercial banks collect and pay the various negotiable instruments like cheques bill of exchange promissory notes ete

b) Purchase and Sale of Securities- Purchase and sale of securities are also undertaken by the modern commercial banks

c) Trustee and Executor. Banks undertake administration of will or settlements and trusteeship functions through its expert staff and specialized departments

d) Remittance of Money. The commercial banks remit funds on the behalf of customer from one place to another through cheques, drafts, mail transfers etc.

e) Bullion Trading. The commercial banks trade bullions like gold and silver in many countries

2) General Utility Facilities- Banks provides following utility functions in addition to the agency services

a) Locker Facilities- Bank provides locker facilities to their customers. People can keep their jewellery and other important documents in these lockers at a nominal annual rent

b) Acting as underwriters-Banks also underwrites the new issues of the Government and Corporate bodies for a commission

c) Acting as Information Banks-Commercial Banks also act as Information bureau as they collect the financial, economic and statistical data relating to the industry, trade and commerce

d) Merchant Banking Services Commercial Banking also renders merchant banking services to the

customers They help in availing loans from non- banking financial institutions.

e) Dealing in Foreign Exchange-Major commercial banks also transact business of foreign exchange through their main branches. Commercial banks are the main authorized dealers of foreign exchange in India


1) Automatic Teller Machine (ATM) cum Debit Cards.

Many bankers has introduced ATMs to assist their customers to withdraw and deposit cash without any waiting time. The debit and credit cardholders of a bank can also withdraw cash in emergency from the ATMs at any time

2) Credit Cards Credit Card is plastic money which acts an instrument of credit. The credit cardholders need not carry cash in their pockets. The card holder may purchase goods from many authorized dealers by using the credit card at nominal rate of interest.

3) Tele Banking. A customer can do entire non-cash related banking over the phone anywhere and anytime.

Automatic Voice Recorders or ID numbers are used for rendering tele-banking services which have added convenience to customers

4) Internet Banking Internet Banking is a platform for electronic delivery of banking services to the customers

5) Round the Clock Banking. The modern banking system facilitates performing of basic banking transactions by customers round the clock globally.

Worldwide 24 hours and 7 days a week banking services are made possible