As mentioned earlier financial intermediation is basically the process of channeling the savings of the people into investment, in order to promote economic growth in the region. The situation in reality is that everyone does not have the availability or the ability to invest in a profitably venture at high stakes or with a high share, however they still want a return on their investment. In such cases financial intermediaries like the commercial and the investment banks come in. the justification for the presence of financial intermediaries are many, one of them is that it is not possible or the state bank to operate in all locales of the region. This puts a constraint on the availability of the banking services. As a result in order to provide baking facilities in a large scale intermediaries are formed with operate their facilities in various location often separate from the state bank. However they are still required to follow the rules and policies for operations as dictated by the state bank.