Following are the advantages of banks in a modern society:
Money deposited in commercial banks can be withdrawn on demand by cheque. Payments can also be made by cheque. Thus, business firms are not required to make large payments in cash and also not required to maintain large cash balances with them.
Financial assistance is provided by banks by way of cash credit, overdraft, loans and advances on discounting of bills of exchange.
Various agency services provided by commercial banks are prompt and reliable, for all these services bank charge only a nominal fee or commission.