A commercial bank may be defined as a financial institute which deals with money and credit and which receives deposit from the public and organisation for safekeeping, some of which are repayable on demand by cheque.

Commercial banks are public limited companies owned by shareholders. They operate on a commercial basis; that is,theyare out to maximise profit by trading in money. They differ from other banking institutions because they honour cheques drawn by their customers on their demand deposits. Read More...