
In this chapter on commercial banking, we study what is banking,
what is a bank, the functions of a commercial bank, the importance of
commercial banks, the investment policy of a commercial bank, com-
mercial banking, process of credit creation, the evolution of Indian
commercial banks, Indian banking since nationalization, the current
situation, the challenges facing Indian banking and the strategic
options with banks to cope with the challenges. After reading this
chapter, you will make use of this knowledge in your day-to-day life,
both for personal as well as o cial purposes.
Most people do not keep huge amounts of cash with them, as ...