Question

Which of the following is not a function of a commercial bank?

• A. Providing locker facilities
• B. Issuing letter of credit
• C. Providing cheque facilities
• D. Giving loan to the government

Answer 1

The correct option is D Giving loan to the government

Besides deposits and lending, banks facilitate services like transfer of remittances, provide cheque, draft, and bill facilities, and locker facilities. They also provide functions like bill discounting, letter of credit, and bank guarantee to facilitate credit facilities to borrowers.