INNOVATIVE TEACHING MANUAL

INNOVATIVE LESSON TEMPLATE

Name of the teacher : Ambili Anand

Name of the school :B.H.H.S.S., Mavelikara
Subject
:Business studies
Unit
:Business services
Topic
:Functions of commercial bank
Content outline

Standard
: +1
Strength
: /50
Average age :16 yrs.
Duration
Date

Functions of commercial bank

Content Analysis

Terms

-Primary Function, Accepting Deposits, Lending

Money, Secondary Functions, Agency Services,
General Utility Services

Facts

-Banks performs a variety of functions-basic or primary

functions and secondary function
-The most important functions of commercial banks is
to receive money as deposits from the public.
-The banks have to attract deposits from the public by
offering them some interest
-The need of different classes of people banks usually
accept different kinds of deposits
-These deposits are accepted through current account,
saving account, and fixed deposits
-Current account is suitable form of deposit for
businessman
-Current account deposits can be withdrawn provided
there is sufficient fund at any time without any prior
notice
-Saving bank account envisaged promotion of thrift or
saving habit among individuals
-Customer can deposit any time of money, and at any
number of times.
-Fixed bank deposits are for a definite period of time

and they carry a higher rate of interest as compared to

saving deposits.
-Lending money is another basic function of
commercial bank.
-Interest charged on lending money is the main source
of income.
-A portion of deposits should be kept as reserve for
meeting withdrawal of customers and the balance is lent
out to the needy customers against eligible securities.
-cheque facility involves banks render a valuable
service to their customers by collecting local and out
station cheques drawn on other banks.
-Remittance facilities are provided for transfer of funds
from one place to another.
-This is made possible with the issuing of demand draft,
pay orders or mail transfers.
- As per the instruction of the customers, banks
undertake to buy or sell shares, debentures, government
securities etc.
-Banks performs custodial services like accepts
valuables such as gold, precious metals, important
documents and valuable papers like insurance policies,
share certificates, deed of properties etc. for safe
custody.

Concept

Curricular Objective

Commercial banks are institutions dealing in money

and credit. They are governed by Indian Banking
Regulation Act 1949. Banking is a business of receiving
deposits, lending them to the people need finance and
rendering other useful services.

To examine the functions of commercial banks through

field visit to the bank and to analyse its importance in
day- to day life, prepare report.

Pre-requisites

Teaching learning
resources

Teaching learning
Strategies

Students should have an idea about the term banking,

types of banks, and commercial bank.

Usual classroom aid like chalk and blackboard

Specimen cards
Various banking documents
Chart showing various functions of commercial
bank
Discussion, Field trip, seminar

Plus one Business Studies textbook(SCERT)

References
CLASSROOM INTERACTION PROCEDURE
RESPONSE/FEEDBACK
Phase 1: Introductory Phase
Activity: Observation and Field Trip
After the routine classroom practice teacher begins
the class by conducting a field visit to nearby
commercial bank (SBT). Through this process
students got an idea about functions of commercial
bank.
Phase 2 : developmental phase
Activity 1 : group discussion
The teacher divides the class into 4 groups and
exhibits the specimens to generate an idea about
the functions of commercial bank and motivates
the students to identify the functions from the
specimens.
Concept to be Consolidated
Primary Functions
I. Accepting deposits
II. Lending of Money
Secondary Functions
I. Agency services
II. General Utility Services

Cheque facility
Remittance of funds
Personal services
Dealing in shares, debentures etc.
Custodial services
Issues of letters of credit
Issues of travellers cheques
Provision of credit information

Phase 3: Concluding Phase

Students are motivated to sum up the topic and
clarify their doubt. Teacher motivates them to
recollect their knowledge about banking,
commercial bank, functions of commercial bank.
And motivate the students for their response.
Review Questions
1. What is commercial bank?
2. What are the functions of commercial bank?
Follow up Activity
Prepare a seminar on different functions of
commercial bank.