ICSE Class 9 Answered

Role of banks in the industrial and commercial life of a country are as follows:

1. 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 for productive activity. Thus they encourage savings and promote production activities by investing them.
3. Banks help in the distribution of surplus capital from regions where it is abundant to regions with a scarcity.
4. It provides concessional loans to the priority sectors like agriculture, small scale industry, retail trade, export, etc.