Question

In what circumstances a commercial bank act as an agent for a customer?

Answer 1

The primary functions of a commercial bank are accepting deposits and also lending funds. Deposits are savings, current, or time deposits. Also, a commercial bank lends funds to its customers in the form of loans and advances, cash credit, overdraft and discounting of bills, etc.

Answer 2

Explanation:

➡️ The Commercial banks may serve as agents by collecting and paying checks, dividends, and bills of exchange for their customers. They could also pay rent, insurance premiums, trade securities on behalf of their customers.