Which of the following charateristics of banks make it a business helping in transfer of funds, payment of water bills, etc., on standing instructions?

Wide range of services offered

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Lending loans

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Accepting deposits

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Providing locker facility

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Solution

The correct option is A Wide range of services offered
An important characteristic of banks is the range of services offered. Banks offer services that include general utility services like undertaking safe custody of valuables, and agency services like transfer of funds and making payments of electricity bills.

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Similar questions

50. Identify the correct statements.

1. Marginal Standing Facility (MSF) Rate: It is rate at which the scheduled banks can borrow funds overnight from RBI against government securities

2. Statutory Liquidity Ratio (SLR): It is amount that banks have to maintain a stipulated proportion of their net demand and time liabilities (NDTL) in the form of liquid assets like cash, gold and unencumbered securities, treasury bills, dated securities etc.

Consider the following statements regarding Payment Banks:
1. Payment Banks can't advance loans or issue credit cards.
2. Payment Banks can accept demand deposits up to Rs 5 lakh.
3. Payment Banks offer remittance services, mobile payments/transfers/purchases.
4. Payment Banks offer banking services like ATM/debit cards, net banking and third party fund transfers.
Which of the above statement(s) is/are correct?

Q. From the following information supplied by Mr. D.H., prepare his Bank Reconciliation Statement as on 31st March, 2019:

		₹
(i)	Bank overdraft as per Pass Book.	33,000
(ii)	Cheques issued but not presented for payment.	17,500
(iii)	Cheques deposited but not collected.	21,000
(iv)	Cheques recorded in the Cash Book but not sent to the bank for collection.	4,000
(v)	Payment received from customers directly by the bank.	7,000
(vi)	Bank charges debited in the Pass Book.	40
(vii)	Premium of Life Insurance Policy of Mr. D.H. paid by the bank on standing instructions.	360
(viii)	A bill for ₹ 6,000 dishonoured on 30th March, 2019 and bank paid Noting charges ₹ 20. This bill was discounted on 30th January, 2019.

Q. Which of the following make banks a business entity?

Q. When payments made by the bank as per the standing instructions of the customer, the balance in the pass book will be more when compared to the cash book.

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