Question

Discuss the Primary and Secondary functions of bank.

Answer 1

The primary functions of a bank includes the function of accepting deposits and granting advances i.e. accepting deposits of money from the public for the purpose of lending or investment where the depositor can demand for repay through cheque, draft, order or otherwise. These are also known as quantitative functions of a bank.

The secondary functions of a bank includes the agent function which refers to the banking function of transferring money, Purchase and sale of securities, Consultancy business etc. and general utility services which includes locker facility, letter of credit etc. These are also called qualitative services of a bank.