What are the two main functions of a commercial bank?

The two main (primary) functions of a commercial bank are:

1. Accepting Deposits — Commercial banks receive deposits from the public for the purpose of making investments and granting loans. People deposit their savings for safety and for earning interest. Deposits are accepted in different forms — Fixed deposits, Savings deposits, Recurring deposits and Current deposits.

2. Lending Money — Commercial banks lend money to businessmen, farmers, artisans and others through various means such as overdraft, cash credit, discounting of bills, and loans and advances.