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    There are two main types of banks based on their functions: commercial banks and central banks. Commercial banks perform primary functions like accepting deposits and granting loans. They also perform secondary functions such as agency functions like bill discounting and utility functions like locker facilities. Commercial banks can be further classified as private banks, public banks, and foreign banks. Some examples provided are State Bank of India, HDFC Bank, ICICI Bank, and Dena Bank. Primary functions of commercial banks include accepting deposits, providing loans and advances, and crediting cash. Secondary functions include discounting bills of exchange, overdraft facilities, purchasing and selling securities, and providing locker facilities.

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    There are two main types of banks based on their functions: commercial banks and central banks. Commercial banks perform primary functions like accepting deposits and granting loans. They also perform secondary functions such as agency functions like bill discounting and utility functions like locker facilities. Commercial banks can be further classified as private banks, public banks, and foreign banks. Some examples provided are State Bank of India, HDFC Bank, ICICI Bank, and Dena Bank. Primary functions of commercial banks include accepting deposits, providing loans and advances, and crediting cash. Secondary functions include discounting bills of exchange, overdraft facilities, purchasing and selling securities, and providing locker facilities.

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    15 views5 pages

    Types of Banks Based On Functions

    Uploaded by

    KAVIN MATHI BALAKUMAR
    There are two main types of banks based on their functions: commercial banks and central banks. Commercial banks perform primary functions like accepting deposits and granting loans. They also perform secondary functions such as agency functions like bill discounting and utility functions like locker facilities. Commercial banks can be further classified as private banks, public banks, and foreign banks. Some examples provided are State Bank of India, HDFC Bank, ICICI Bank, and Dena Bank. Primary functions of commercial banks include accepting deposits, providing loans and advances, and crediting cash. Secondary functions include discounting bills of exchange, overdraft facilities, purchasing and selling securities, and providing locker facilities.

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    TYPES OF BANKS

    BASED ON FUNCTIONS
    BY
    KAVINMATHI
    JAYAVANTI
    KAMALI
    INTRODUCTION
    ◦ WHAT IS BANK

    A bank is a lawful organisation that accepts deposits that can be withdrawn on


    demand. Banks are institutions that help the public in the management of their finances, public
    deposit their savings in banks with the assurance to withdraw money from the deposits whenever
    required
    Important Functions of Bank
    There are two types of functions of banks:

    1. Primary functions – being primary are also called banking functions.


    2. Secondary Functions

    Primary Functions of Bank


    All banks have to perform two major primary functions namely:
    1. Accepting of deposits
    2. Granting of loans and advances

    Secondary Functions of Bank


    Like Primary Functions of Bank, the secondary functions are also classified into two parts:
    3. Agency functions
    4. Utility Functions
    TYPES OF COMMERCIAL BANKS

    • Private bank
    • Public bank
    • Foreign bank

    Examples
      1. State Bank of India (SBI)
        2. Housing Development Finance Corporation (HDFC) Bank
        3. Industrial Credit and Investment Corporation of India (ICICI) Bank
        4. Dena Bank
        5. Corporation Ban
    FUNCTIONS OF COMMERCIAL BANK
    • Primary function
    Accepts deposit
    Provides loan and advances
    Credit cash

    • Secondary function
    Discounting bills of exchange
    Overdraft facility
    Purchasing and selling of the securities
    Locker facilities
    Paying and gathering the credit

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