Function of commercial bank
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Accepting deposits and Advancing loans can be termed as Primary functions of bank, while the secondary functions of the bank include (1) Agency Services and (2) General Utility Services. As we mentioned, one of the most important function of the Commercial Banks is to accept deposits.
the comercial bank is a bank which takes deposites and issues loans
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hello friend...♡♡♡
FUNCTIONS OF COMMERCIAL BANKS
Primary Functions , Secondary Functions
Primary Functions Of Commercial Banks
Commercial Banks performs various primary functions some of them are given below
Accepting Deposits: Commercial bank accepts various types of deposits from public especially from its clients. It includes saving account deposits, current account deposits, recurring account deposits, fixed deposits, etc.
Giving loans: The commercial banks provide loans and advances of various forms. It includes an over draft facility, cash credit, bill discounting, etc. They also give demand and term loans to all types of clients against proper security.
Secondary Functions Of Commercial Banks
Along with the primary functions each commercial bank has to perform several secondary functions too. It includes many agency functions or general utility functions. The secondary functions of commercial banks can be divided into agency functions and utility functions.
Agency Functions:
To collect and clear cheque, dividends and interest warrant.To make payment of rent, insurance premium, etc.To deal in foreign exchange transactions.To purchase and sell securities.To act as trusty, attorney, correspondent and executor.To accept tax proceeds and tax returns.
General Utility Function:
To provide safety locker facility to customers.To provide money transfer facility.To issue traveller’s cheque.To act as referees.To accept various bills for payment e.g. phone bills, gas bills, water bills, etc.To provide merchant banking facility.To provide various cards such as credit cards, debit cards, Smart cards, etc.
hope its help U....my friend♡♡
FUNCTIONS OF COMMERCIAL BANKS
Primary Functions , Secondary Functions
Primary Functions Of Commercial Banks
Commercial Banks performs various primary functions some of them are given below
Accepting Deposits: Commercial bank accepts various types of deposits from public especially from its clients. It includes saving account deposits, current account deposits, recurring account deposits, fixed deposits, etc.
Giving loans: The commercial banks provide loans and advances of various forms. It includes an over draft facility, cash credit, bill discounting, etc. They also give demand and term loans to all types of clients against proper security.
Secondary Functions Of Commercial Banks
Along with the primary functions each commercial bank has to perform several secondary functions too. It includes many agency functions or general utility functions. The secondary functions of commercial banks can be divided into agency functions and utility functions.
Agency Functions:
To collect and clear cheque, dividends and interest warrant.To make payment of rent, insurance premium, etc.To deal in foreign exchange transactions.To purchase and sell securities.To act as trusty, attorney, correspondent and executor.To accept tax proceeds and tax returns.
General Utility Function:
To provide safety locker facility to customers.To provide money transfer facility.To issue traveller’s cheque.To act as referees.To accept various bills for payment e.g. phone bills, gas bills, water bills, etc.To provide merchant banking facility.To provide various cards such as credit cards, debit cards, Smart cards, etc.
hope its help U....my friend♡♡
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