ICSE Class 10 Answered

The role of commercial banks in the industrial and commercial life of a country is as follows:

1. Commercial banks help traders and industrialists by providing financial assistance. Their cheques and drafts are useful for trading on a large scale.
2. These banks accept deposits from the people who have surplus amount and provide loans to investors who are in need. Thus they encourage savings and promote production activities by investing them.
3. It helps in the distribution of surplus capital from regions where it is abundant to those places which have a scarcity of funds.
4. It provides concessional loans to the priority sectors like agriculture, small scale industry, retail trade, export, etc.