At the initial stages of the Banking Field the sector was too small and most it is only used by rich people and there were no segments like Investments Banks or Commercial or Merchant Banks.
Everything has been actually called out as only banks then nowadays banks are actually providing out lots of services other than money deposits, debit card services and loans.
The main reason for the development is due to the technological advancements that have been made out in the field of banking so far.
Basically Commercial banks are something provides out normal banking features to the people and also provides out common banking features to the Banking organizations too.
Mostly the common things the banks actually provide out are taking deposits, providing out normal loans, cash deposit, collection of funds, Making out purchase and selling of securities along with the features of Bank Overdraft and Cash Credit Features.
While on the other Merchant banks are something which is very much different from the Commercial banks because they been known to provide financial and consultancy services to the clients.
They have got a big no of a group of experts who were well known with the banking services and have understood the banking and business very well.
Along with they are also associated with the promotion and development of industrial projects to very well.
The commercial banks are actually governed out by the banking regulations of 1914 act while on the other hand merchant banks follow out the rules and regulations which were framed out by the SEBI.
And next commercial banks major job is to relate with the normal banking services while the Merchant is way different since they excel in providing out the Advisory services too.
Commercial banks don’t charge for all the services they provide actually they only charge for the services of ATM and card while most of the other features are absolutely free and you’ll be kind of only charged unnecessarily if you maintain low balance than the required.
While merchant Banks mostly charges out for the services they provide, like all the types of services they provide out from normal services to the premium services.
But the amount of money that you have to pay differs based on the type of services that you actually opt-out for.
So choose the services wisely for the amount you need to pay.
Check out the Future of Banking
So actually in simple steps, if we want to say is that it doesn’t matter which type of Banking you are going to choose, what actually matters is that the Bank that you are going to opt for the service that you want.
Know about how to open an account online
For example, if you want to choose a bank which provides Merchant service then you should select the bank which actually provides them, Selecting the bank which is not providing them is not going to do anything good for you. Instead, they are gonna give you a lot lesser option than you have predicted for.