Question

explain the agency functions of commercial banks.​

Answer 1

Answer:

pls mark me brainiest

Explanation:

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. Banker accepts standing instructions from the customers and arranges to collect dividend, interest, pension, salaries, bills etc. on behalf of his customers.

2. Payment of Subscription, Rent, Insurance Premium etc.: Banks undertake the payment of subscriptions, rent, insurance premium etc. on behalf of the customers and debit the account with the amount. It accepts the standing instructions of the customer and arranges for.the payment of such expenses on their behalf. It charges a small amount by way of commission for these services.                                                                                                                                                                                                                                                                                       3. Conduct of Stock Exchange Transactions: Banks purchase and sell various securities such as shares, debentures, bonds etc. of joint stock companies both private and Government on behalf of their customers.

4. Acting as Executor, Trustees, Attorneys etc.: Banks act as executors of will, trustees, attorneys and administrators. As an executor it preserves the “Wills” of the customers and executes them after their death. As a trustee, it takes care of the funds of the customers. As an attorney, it signs transfer forms and documents on behalf of the customer.