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Question
Answer with reasons whether you agree or disagree with the following statement:
The commercial banks perform many useful works for the people.
Solution
These utility services include: -
i. Commercial banks provide safe deposit vault/ locker facility to its customers to keep their valuables.
ii. Remittance of funds through mail transfer,demand draft, mail transfers, etc.
iii. The facility of letters of credit by commercial banks enables the traders to purchase goods on credit.
v. Commercial banks provide reference/ status report with respect to financial standing, frequency of payment.
vi. Underwriting facility for shares and debentures is another function performed by commercial banks.
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