Structure of Commercial Banking
Commercial banks are the institutions that ordinarily accept deposit from people and advances loans. Commercial banks also create credit. In india such banks alone are called commercial banks which are established in accordance with the provisions of the Banking Regulation Act, 1949. Commercial Banks may be Scheduled banks or non- Scheduled banks.
1. Must always function in the interest of depositors.
2. Must have paid up capital and reserve fund amount to 25 lakh and more.
3. These banks have to submit details of their activities to Reserve Bank every week.
Schedule Banks are broadly classified in two main categories
(a) Pubic Sector Banks
(b) Private Sector Banks
