Question

Visit a nationalised bank /branch and get to know about the work of nationalised banks.

Answer 1

The two most important features of a commercial or nationalized bank are acceptance of deposits and lending of money.

The different functions of a commercial bank are as follows:

1. It accepts deposits: deposits are the lifeline of banks.
   1. Current account deposit
   2. Fixed-term deposits
   3. Saving account deposits
2. It gives loans and advances
   1. Cash Credit
   2. Short term loans - Overdraft facility,
3. Discounting bills of exchange,
4. Agency functions of the bank
   
   1. Transfer of funds
   2. Collection of funds
   3. Payments of various items
   4. Purchase and sale of shares
5. General services:
   
   1. Locker facility
   2. Purchase and sale of foreign currencies
   3. Traveller's cheques and gift cheques

A nationalized bank is a financial institution that performs various functions. The banks' interest rate to depositors is called the borrowing rate. Its primary aim is to make a profit.