How do banks play an important role in enhancing economy of India ?

The following points may help you:

a. Banks are an important organisation and medium of making accepting deposits and lending money to the public.
b. People can open a current account or a saving account in banks and can deposit their money.
c. Banks give reasonable amount of interest on the money deposited.
d. The deposits made by the people can be withdrawn and hence are called demand deposits,
e. There is a facility available to people to settle their cash transactions by making cheques,
f. One of the important activities of bank is to make loans to the people from the deposits.
g. These loans are extended on a particular rate of interests for various activities, it could be for establishing a business, house loan, car loans etc.
h. The interest rate are generally high on these loans than offered in deposits by the banks which is its main source of income.
i. These loans are offered against a collateral. Banks also offer an opportunity to have fixed and demand deposit,
j. In India, Reserve Bank of India issues currency and supervises the functioning of all other banks,
k. Banks can also offer cheap credit to rural households.
l, They can prevent them from being exploited and getting trapped in debt trap.

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Trade Development. Commercial banks provide capital, technical assistance and other tools to businessmen according to their need, which helps to develop trade.

Agricultural Development. Commercial banks finance the most important sector of developing economics i.e. agriculture. Short, medium and long-term loans are provided for the purchase of seeds and fertilizer, the installation of tube wells, the construction of warehouses, the purchasing of tractors, threshers and other equipment, etc.

Industrial Development. The countries that concentrated on their industrial sector made rapid gains economic development. South Korea, Malaysia, Taiwan, Hong Kong, and Indonesia have recently developed their industrial sector with the help of commercial banks.

Capital Formation. Commercial banks help accelerate the rate of a country's capital. Capital formation refers to increases in the number of production units and improvements and dissemination in technology, plants, and machinery. Banks finance the projects responsible for increasing the rate of capital formation.

Development of Foreign Trade. Commercial banks help traders from two different countries do business together. Letters of credit are issued by the importer’s bank to the exporters to ensure the payment. The banks also arrange foreign exchange.

Money Transfers. Commercial banks provide the facility of transferring funds from one place to another which leads to the growth of trade.

Higher Productivity. A good banking system helps increase production in all sectors of the economy by strengthening the capital structure and the division of labor
Transportation. Commercial banks finance the transportation sector, which reduces unemployment on one hand and increases the ease of movement on the other. Remote areas are linked to main markets through developed transport system.
Safekeeping of Valuables. Businesses and individuals can confidently deposit surplus money in banks. Banks also provide them lockers to keep precious articles and necessary documents safe.
Better Savings Rates. Commercial banks persuade the people to save more. Different saving schemes with attractive interest rates are introduced for this purpose. To that end, the bank opens branches in urban and rural areas to attract depositors.
Construction. Commercial banks provide credit for the purchase or construction of houses.
Government Loans. By providing funds for government development programs, commercial banks help the government ensure economic stability.
Higher Employment Rates. A country’s economic prosperity depends on the development of trade, commerce, industry, agriculture, transportation, and communication, etc. These sectors are financed by the commercial banks, which increases employment opportunities.
Paper Money. Cheques and drafts etc works like money. So there's no need to make coins out of precious metals, which could reduce a country's reserves that could otherwise be used for other, more important purposes.
More Credit. Commercial banks are factories of credit. They do so much with the money they collect in deposits by lending it out at interest. Through the process of credit creation, commercial banks finance all sectors of the economy, making them more developed.