Question

The functions of commercial banks are:

(a) Primary functions

(b) Secondary functions. Secondary functions may be of agency and general utility functions? Describe any three utility services?

Answer 1

General utility functions: 

1. Accepting bills on behalf of customers: Banks accept bills on behalf of customers and make payments to the foreign exporter.

2. Issue of demand drafts and Banker’s cheques: Demand drafts and banker’s cheques are issued to the public and customers. 

3. Safety lockers: Valuable documents, jewels can be kept in a vault provided by the bank for rent.