Functions of commercial
banking
Functions of commercial
banking
§ Principal
/ Primary / Basic / Fundamental functions
§ Receiving
of deposits:-
o
Current accounts / Demand deposits /
Demand liabilities
o
Saving bank account
o
Fixed deposit account / Time deposits /
Time liability
o
Recurring deposit account
o
Home safe account / Money box Scheme
§ Lending
of funds
o
Loans
o
Cash credits
o
Overdrafts
o
Discounting of bills
§ Investment
of funds on securities
§ Credit
Creation
§ Subsidiary
/ Secondary / Supplementary / Ancillary functions
§ Agency
services
o
Collection of money on behalf of
customers
o
Making
Payment on behalf of customers
o
Purchase and sale of securities on
behalf of customers
o
Advising customers regarding stock
exchange investment
o
Acting as Trustee, Executer or Attorney
of customers
o
Serving as correspondents and
representative of customers
§ Miscellaneous
/ General utility services
o
Safe custody of valuables
o
Issuing of Travelers ‘letter of credit,
and Travelers Cheques
o
Acting as a Referee
o
Collection of statistics and Data.
§ Principal
/ Primary / Basic / Fundamental functions
§ Receiving
of deposits:-
o
Current accounts / Demand deposits /
Demand liabilities
o
Saving bank account
o
Fixed deposit account / Time deposits /
Time liability
o
Recurring deposit account
o
Home safe account / Money box Scheme
§ Lending
of funds
o
Loans
o
Cash credits
o
Overdrafts
o
Discounting of bills
§ Investment
of funds on securities
§ Credit
Creation
§ Subsidiary
/ Secondary / Supplementary / Ancillary functions
§ Agency
services
o
Collection of money on behalf of
customers
o
Making
Payment on behalf of customers
o
Purchase and sale of securities on
behalf of customers
o
Advising customers regarding stock
exchange investment
o
Acting as Trustee, Executer or Attorney
of customers
o
Serving as correspondents and
representative of customers
§ Miscellaneous
/ General utility services
o
Safe custody of valuables
o
Issuing of Travelers ‘letter of credit,
and Travelers Cheques
o
Acting as a Referee
o
Collection of statistics and Data.
No comments:
Post a Comment