Question

Write Short Notes on the following:

Utility functions of commercial banks

Answer 1

The following are some of the utility functions of commercial banks:

i. These banks provide locker facility to their customers. In this facility, customers can keep their valuable things like jewellery and important documents in bank lockers.

ii. These banks issue travellers’ cheques to their customers, because of which customers need not carry money with them while travelling (domestically or internationally). They can encash the travellers’ cheques at any branch worldwide.

iii. These banks provide information to their customers regarding business conditions, payment rules, etc., of businesses in other countries.

iv. These banks also provide the facility of gift cheque to the general public.