Commercial bank is an institution which performs the functions of accepting deposits, granting loans and making investments, with the aim of earning profits.
Mobilisation of Deposits of Commercial Banks from the Public Commercial banks mobilise deposits from the public by accepting deposits.
(i) Current Deposits: Deposits in the current account are called current deposits. These deposits are repayable by the bank on demand. Banks do not pay interest on such deposits.
(ii
) Fixed Deposits: Commercial banks accept fixed deposits (or time deposits). In this, the amount is deposited with the bank for a fixed period of time.