Two essential conditions to become a bank are:
1. Accepting deposits
2. Advancing of loans
In deposits, a commercial bank must accept the demand deposits i.e. current account and savings accounts
A Commercial Bank is an institution that performs the functions of accepting deposits, granting loans, and making investments, with the aim of earning profits.
State Bank of India (SBI), Punjab National Bank (PNB), and Allahabad Bank are examples of commercial banks.
All financial institutions are not banks.
For the financial institutions are not the banks,
for example, LIC, India Bulls, and Muthoot Finance are not banks as these only offer loans but do not accept demand deposits.
In other words, these do not open the Current and Savings accounts of the general public.
But, commercial bank such as SBI, and PNB accepts demand deposits and also offer loans to the public.