Commercial Bank

Commercial Banks are the most common types of banks. These are the chiefly engaged in receiving deposits, advancing loans and discounting bills. They lend money for short period against easily marketable securities. They finance internal trade, deal with credit instrument and render other numbers of services to their customers and play a vital role in the commercial development of the country.

Businessman and salaried persons are provided the facility of operating bank accounts. They settle their accounts by issuing cheques. Those commercial banks who become the member of the central bank are known as scheduled banks.

Scheduled Banks

The word ‘Scheduled’ means a list. The banks which are registered in the list of central bank under its charter are called scheduled banks. They provide banking services according to the policies and instructions of central bank.

In other words scheduled banks are those which by virtue of financial position are included in the schedule of the banks maintained by the central bank. Every scheduled bank has to fulfill certain conditions. It is also known as a member bank.