1.

explain agency functions of bank

Answer»

Commercial banks provide certain services to their customers in return of some commission, these are called as agency functions.

Some of the agency functions of a commercial bank are listed below

  • Collection of cheques, bills and drafts.
  • Payment of interest, instalments of loans, insurance premium etc.
  • Purchase and sale of securities
  • Collection of interest, dividend etc.
  • Transfer of funds through demand drafts, mail transfer etc.
  • Purchase and sale of foreign exchange.


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