Question

State the Agency functions of Banks.

Answer 1

The bank performs some functions on behalf of its customers. These agency functions are:
(1) Collecting the amount of the cheques and bills deposited by its customers.
(2) Collecting dividend, interest, salary, pension, etc. on behalf of the customers.
(3) Making periodic payments such as annual subscriptions, rent, interest, taxes, Insurance premium, electricity bill, etc. as per standing instructions.
(4) Buying and selling securities such as shares, debentures, and other securities on behalf of customers. Bank also plays the role of Depositor Participant (DR).
(5) Remitting funds from one place to another by means of bank drafts, mail transfer, telegraphic transfer, etc.
(6) Carrying out or fulfilling standing instructions of depositors.
(7) Acting as an administrator, trustee, executor of W111, and attorney on behalf of its customers.
(8) Act as Banker to the issue. Lead manager, etc behalf of the Companies.