When you have a bank account the money in there is being lent out to companies - even if the money is in there overnight it still is able to be lent, because a lot of other people are doing the same. read more
2.Provide bank guarantee and LC which provides benefits to manufacturers and many businessman which plays a vitol role in shaping economy. 3.Banks can trace the money inflow / outflow to various countries which would help the home country in various ways. 4. read more
The banks help in mobilising savings through network of branch banking. The ultimate savings of people result in capital formation which forms the basis of economic development. The banks finance the industrial sector. they not only provide finance for industry but also help in developing the capital market for India. read more