Define a commercial bank.

1. A commercial bank is a profit-making financial institution that accepts deposits from the public ( both chequeable and non-chequeable) and provides different kinds of loans for consumption or investment.

2. According to the Indian Companies Act 1956, ‘Banking company is the one which transacts the business of banking activity which means accepting (for lending or investment) of deposits of money from the public repayable on demand, or otherwise through cheque or draft order’.