The primary functions of Commercial Banks include-Accepting deposits and Lending funds.

Monjur Alahi

Justify the following statement:

The primary functions of Commercial Banks include-Accepting deposits and Lending funds.


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Salim Ahmed Kawsar

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The main object of a commercial bank is to accept deposits and lending money to customers or account holders:

  • To encourage the people who have surplus funds.
  • To encourage the saving habit among the people.
  • To give support to businessmen for opening a current account.
  • To encourage people to make regular savings.
  • To lend loans and advances through various modes i.e. short-term loan, medium-term loan, long term loan, overdraft facility, cash credit facility, and discounting of the bill of exchange, etc.
  • Thus, the primary functions of Commercial Banks include-Accepting deposits and Lending funds.
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