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Which of the following is not the function of commercial bank?
To accept deposits
To offer loans
To provide overdraft facility
To fix CRR
- Option 1: To Accept Deposits
Commercial banks are primarily responsible for accepting deposits from the public. This helps them to gather funds, which they can use for other financial activities.
- Option 2: To Offer Loans
Offering loans is one of the crucial functions of commercial banks. They lend money to individuals and businesses based on interest, thus generating revenue.
- Option 3: To Provide Overdraft Facility
This facility allows account holders to withdraw more money than they have in their accounts, up to a certain limit. It is a common service provided by commercial banks.
- Option 4: To Fix CRR
The Cash Reserve Ratio (CRR) is determined by the central bank of a country, not commercial banks. It refers to the portion of deposits banks must hold in reserve and not lend out as loans.
Correct Answer: Option 4 - To fix CRR
By: santosh ProfileResourcesReport error
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