Question

What are the agency functions of banks?

Answer 1

Commercial banks provide different types of agency functions for their clients. These banks collect the dividends, interests and cheques from the customers of those companies.

All the payments of monthly rents, subscriptions and insurance premiums of the customers are also paid by these commercial banks.

The stock exchange transactions are also conducted on behalf of the customers of these banks.

Sometimes, these banks act as attorneys or trustees of the properties of their customers.

Answer 2

Answer: Agency functions of banks are :

1) collection of cheques , dividends , interest etc..

2) payment of subscription , rent , insurance premium etc...

3) preparation of income tax returns.