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Question
Which of the following is not the function of commercial bank?
Options
Accepting deposits
Advancing of loans
Credit
Issue of currency
Solution
Issue of currency
Explanation:
Commercial banks do not issue currency. This function is reserved for central banks like the Reserve Bank of India (RBI). Commercial banks primary functions include receiving deposits, issuing loans, and supporting credit creation. A nation's central bank is only accountable for issuing currency.
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| Column I | Column II | ||
| A. | Function of Commercial bank | (i) | Initial deposits × `1/"LRR"` |
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| D. | Margin requirement | (iv) | `1/"LRR"` |
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