Commercial banks provide certain services to their customers in return of some commission, these are called as agency functions.
Some of the agency functions of a commercial bank are listed below
- Collection of cheques, bills and drafts.
- Payment of interest, instalments of loans, insurance premium etc.
- Purchase and sale of securities
- Collection of interest, dividend etc.
- Transfer of funds through demand drafts, mail transfer etc.
- Purchase and sale of foreign exchange.
