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Question
Mention any two agency functions/services of a commercial bank.
Answer in Brief
Solution
- Collecting Receipts: Banks collect amounts of cheques, bills, promissory notes, and hundies on behalf of their customers. They also collect interest, dividends, and rent on the instructions of their customers.
- Making Payments: On the instructions of customers, banks make payments of loan installments, interest, rent, insurance premiums, taxes, etc., on behalf of account holders.
- Buy and Sell Securities: Banks buy and sell shares, debentures, and other securities on behalf of their customers.
- Trustees and Executors: Commercial banks act as trustees and executors for their customers. They also act as representatives of their customers with other banks. Banks transfer money from one place to another within the country and abroad as per the instructions of customers.
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Notes
Students should refer to the answer according to their questions.
Commercial Banks: Functions
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