What's The Role Of Commercial Bank In Consumer Banking?

The banks play very important role for the economic development of the country. The importance can be examined as under:
1. Increase in saving: The people deposit there savings into the banks and the bank pays reasonable profit on these savings.

2. Increase in investment: The money
which is collected by the bank is lent to businessman and industrialist. The increase in the investment increases the level of employment.
3. Increase in employment: The banks advance loan to the investors. As a result; the industrial units are setup in different parts of the country. Hence the level of employment is increased.

4. Transfer of Money: When the people want to transfer their money from one place to another place, they get traveller cheque and the bank draft from the bank.
5. Loan to Govt.: When the govt. Needs funds to complete the public works programs, the banks provide loans to it.

6. Capital formation: The process of the capital formation is completed with the financial of commercial banks. So banks increase capital formation.
7. Balanced development: When the banks provide loans to the less developed areas, the chances of progress and development are increased in the areas.
8. Saving in metals when the payments are made through currency notes and credit instruments, the precious metals are saved.
9. Conclusion: Banks are back bone for the economic development of any country. A planned banking system is indispensable for economic growth and development of the country.