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International Journal of Engineering and Management Research (IJEMR)
Year : 2014, Volume : 4, Issue : 1
First page : ( 27) Last page : ( 31)
Print ISSN : 2394-6962. Online ISSN : 2250-0758.

Role of Commercial Bank in the Economic Development of India

Saini Priyanka1, Sindhu Jyoti2

1Assistant Professor (Ad-hoc), B.R. Ambedkar College, University of Delhi, Delhi, India

2Assistant Professor, Department of Commerce, Venkateswara College, University of Delhi, Delhi, India

Online published on 21 November, 2017.


Banks play a vital role in the economic development of a country. They accumulate the idle savings of the people and make them available for investment. They also create new demand deposits in the process of granting loans and purchasing investment securities. They facilitate trade both inside and outside the country by accepting and discounting of bills of exchange. Banks also increase the mobility of capital. All commercial banks in India excluding Regional Rural Banks and Local Area Banks have become Basel II compliant as on March31, 2009. In a country like India which is still in the initial stages of economic development. A well organized banking system is the need of the day. Commercial banks are the most effective way to generate the credit flow of money in markets. There is acute shortage of capital in India. The banks can play an important role in promoting capital formation, in controlling speculation in maintaining a balance between requirements and availabilities and in direct physical resources into desired channels. Commercial banks play an important and active role in the economic development of a country, if the banking system in a country is effective, efficient and disciplined; it brings about a rapid growth in the various sectors of the economy. As we know that the Agriculture is the backbone of economy of any country like India. Research is based upon the secondary date which provide the findings on commercial banks and how it helpful in economic development. So this research will helpful in finding out that how commercial banks are helpful in credit flowing, employment generations in rural areas and how it will contribute in development of Indian economy.



Agriculture Credit, Economic Development, Poverty.


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