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, commercial 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 official purposes.

Most people do not keep huge amounts of cash with them, as it is very unsafe to do so. They keep only few currency notes and small coins for ...

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