Role of Commercial Banks in the Economic Development of INDIA
Banks have always played an important position in the country’s economy. They play a decisive role in the
development of the industry and trade. They are acting not only as the custodian of the wealth of the country but also as
resources of the country, which are necessary for the economic development of a nation. The general role of commercial
banks is to provide financial services to general public and business, ensuring economic and social stability and sustainable
growth of the economy. Commercial Bank in India comprises the State Bank of India (SBI) and its subsidiaries, nationalized
banks, foreign banks and other scheduled commercial banks, regional rural banks and non-scheduled commercial banks. The
total numbers of branches of commercial banks are more than 50,000 and the regional rural banks are approximately 8,000
covering 280 districts in the country. Commercial banks mostly provide short term loans and in some cases medium term
financial assistance also to small scale units. Most of the commercial banks have got specialized units in their administrative
structure to take care of the financial needs of the small scale industrial units. As we know that the Agriculture is the
backbone of economy of any country like India. Research is based upon the secondary data. Which provide the findings on
commercial banks and how it helpful in economic development. The main objective of the study is to critically examine and
analyze the role of commercial banks on economic growth in India. The study portrays how loans and credit affect the GDP
and consequently the level of economic growth of India.
Keywords - social stability, rapid, realized, tax, GDP.