Question

If someone plans to open a bank then under whose policy he has to work? Why? Mention the functions of bank?​

Answer 1

Answer:

There are two types of functions of banks:

Primary functions

Secondary Functions

Explanation:

Primary Functions of Bank

All banks have to perform two major primary functions namely:

Accepting of deposits :

1. Saving Deposits
2. Fixed Deposits
3. Current Deposits
4. Recurring Deposits

Granting of loans and advances :

1. Bank Overdraft
2. Cash Credits
3. Loans
4. Discounting the Bill of Exchange

Secondary Functions of Bank

Like Primary Functions of Bank, the secondary functions are also classified into two parts:

Agency functions:

1. Transfer of Funds
2. Periodic Collections  
3. Periodic Payments
4. Collection of Cheques
5. Portfolio Management
6. Other Agency Functions

Utility Functions:

1. Issuing letters of credit, traveller’s cheque, etc.
2. Undertaking safe custody of valuables, important documents and securities by providing safe deposit vaults or lockers.
3. Providing customers with facilities of foreign exchange dealings
4. Underwriting of shares and debentures
5. Dealing in foreign exchanges
6. Social Welfare programmes
7. Project reports
8. Standing guarantee on behalf of its customers, etc