Question

explain the working of the banks

Answer 1

Banks performs two types of functions, namely:

• Primary functions that includes:
  1. Accepting deposits like saving deposits, recurring deposits, fixed deposits etc.
  2. Granting advances like overdraft, cash credit, loans etc.
• Secondary functions that includes:
  1. Agency functions like transfer of funds, periodic payments, collection of cheques etc
  2. Utility functions like drafts, lockers, underwriting, project reports etc.​