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This category includes commercial banks and trust companies (accepting deposits) chartered by one of the states or territories.
Banks mobilize deposits by making finances and by investing in various financial markets. Basically deposit mobilization is related to the creation of credits. The banks would have special campaigns where they would interact with a lot of people and invite them to make deposits with their bank.
Commercial banks receive deposits from the public
no
Investment banks provide financial services that are geared toward raising capital such as underwriting, issuance of securities, assisting in Mergers and Acquisitions, and investment management. Unlike commercial banks, they do not take deposits. While investment banks make their money by charging fees for their services, commercial banks earn their money by charging higher interest rates on loans than what they pay for people's deposits.
Commercial banks obtain their funding in many ways. They may take up government bonds from the Central Bank, borrow money from other commercial banks, or source it from customers deposits. Shareholders funds are also used to make investments.
Banks usually get money when they are short from the central banks of their respective country. They also sometimes mobilize deposits from customers and use that money. In other cases they may go public and issue shares to the public and raise money for their operations.
This classification includes commercial bank and trust companies (accepting deposits) chartered under the National Bank Act.
The 8,700 commercial banks, which are about 98% of all banks in the country, hold the vast majority of demand deposits held by all institutions (banks, thrifts, credit unions). Their non-institutional competition is primarily money-market accounts. As the name implies, commercial banks make the majority of commercial loans, but also make more than 20% of all consumer loans.
As you might already know, the main business for banks is accepting deposits and granting loans. The more the loans the banks disburse, the more profit they make. Also, banks do not have a lot of their own money to give as loans. They depend on customer deposits to generate funds for granting loans to other customers. So a deposit mobilization scheme would encourage customers to deposit more cash with the bank and this money in turn will be used by the bank to disburse more loans and generate additional revenue for themselves. They do that by organizing drives and road shows in prominent areas of the city
Commercial banks are guaranteed by the state not to fail because they take deposits from the customers. Investment banks have nothing to do with the individual customer. They don't take or lend deposit. they deal a lot in securities activities which is very risky business. You could win or lose a lot. Most or all commercial banks now have an investment banking arm or department which risks or endangers the deposits of customers if their deals go sour. If things go bad, the commercial bank is guaranteed by the state not to fail so they will pump money into that bank, i.e taxpayers money. This is all because the investment arm of this bank blew all the banks money in its risky bet. Therefore an investment bank should be separate from commercial.
Specialised banks are formed to cater specific needs of industries,export units etc.These are Foreign exchange banks,Industrial development banks,Export -import banks etc. Commercial banks are governed and regulated by Indian Banking Regulation Act 1949 and according to it banking means accepting deposits from public for the purpose of lending investment.