Discuss the agency services provided by banks ?
Answers
Answer:
Collection of cheques, bills and drafts.
Payment of interest, instalments of loans, insurance premium etc.
Purchase and sale of securities.
Collection of interest, dividend etc.
Transfer of funds through demand drafts, mail transfer etc.
Purchase and sale of foreign exchange.
Answer:
1. Collection of Cheques, Dividends, Interests etc.: Collecting cheques, drafts, bill of exchange, dividends, interests etc. on behalf of its customers and credit the amount in their account is one of the most important agency services rendered by the banks.
Explanation:
Agency functions of a commercial bank
Commercial banks provide certain services to their customers in return of some commission, these are called as agency functions. Collection of cheques, bills and drafts. Payment of interest, instalments of loans, insurance premium etc.