Question

State with reasons whether you agree or disagree with the following statements.
The commercial banks perform many useful work for the people.

Answer 1

I do agree with this statement.

Primary Functions:

1. Accepting Deposits

• Savings deposits
• Time deposits
• Current deposits

2. Lending of Funds

• Loans
• Overdraft
• Cash Credit

Secondary Functions:

1. Agency Functions

• Collecting bills, draft, cheques, etc.
• Paying the insurance premium, rent, loan installments, etc.
• Working as a representative of a customer for purchasing or redeeming securities, etc. in the stock exchange.
• Acting as an executor, administrator, or trustee of the estate of a customer
• Also, preparing income tax returns, claiming tax refunds, etc.

2. General Utility Services

• Issuing traveler cheques
• Offering locker facilities for keeping valuables in safe custody
• Also, issuing debit cards and credit cards, etc.