glass stegal act

The Banking Regulation Act, 1949, defines banking as 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, order otherwise.
Functions of Commercial Bank
The functions of a commercial bank are
to change cash for bank deposits and bank deposits for cash.
to transfer bank deposits between individuals and/or companies.
to exchange deposits for bills of exchange, government bonds, the
secured and unsecured promises of trade and industrial units.
- to underwrite capital issues. They are also allowed to invest 5% of their
incremental deposit liabilities in shares and debentures in the primary
and secondary markets. The commercial banks have set up subsidiaries
to provide advice on portfolio management or investment counselling.
They also offer their constituents services to pay insurance, advise on
tax problems and undertake executive and trustee services.