Answer :

The two most important features of a commercial or nationalized bank are,

1. Acceptance of deposits


2. Lending of money


The main function of a commercial bank are as follows:


● It accepts deposits: deposits are the lifeline of banks.


Current account deposit


Fixed term deposits


Saving account deposits


● It gives loans and advances


Cash credit


Demand loans


Short term loans


● Overdraft facility


● Discounting bills of exchange


● Agency functions of the bank


Transfer of funds


Collection of funds


Payments of various items


Purchase and sale of shares


● General services:


Locker facility


Purchase and sale of foreign currencies


Traveller's cheques and gift cheques


A nationalized bank is a financial institution which performs various functions. The rate of interest offered by the banks to depositors is called the borrowing rate.


Its primary aim is to make a profit.


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