Question

What are the functions of a bank?

Answer 1

Instructions: Mention the various functions of banks.

Solution:

• Accepting deposits from public and others.
• Lending loans to public and other institutions.
• Transferring money from one place to another.
• Collecting money on cheques, drafts and bills.
• Discounting of bills.
• Hiring safe deposit lockers.
• Conducting foreign exchange transactions.
• Keeping valuables in safe custody.
• Issuing letters of credit and guarantee.
• Conducting government transactions for both central government and the state governments.