Which of the following is a function performed by commercial banks in India?

Correct option is A

The correct answer is (a) Credit creation.
· Credit creation is a primary function of commercial banks. It refers to the process by which banks generate credit by lending out more than the reserves they hold. Through this process, banks can expand the money supply in the economy.
· Commercial banks accept deposits from the public and use these deposits to extend loans and advances, thereby creating credit.
Information Booster:
Issue of currency:
· This is not a function of commercial banks. The issuance of currency is the responsibility of the Reserve Bank of India (RBI).
Credit control:
· Credit control refers to the regulation of the amount and conditions of credit granted by commercial banks. This function is performed by the RBI to manage the overall money supply and economic stability.
Banking facilities to the government:
· While commercial banks do provide certain services to the government, such as managing government accounts and transactions, this is not their primary function. The primary function related to banking facilities to the government is performed by the RBI.