1.

List out the functions of a bank.

Answer»

Banking functions can be classified into two types.
They are:
(A) Main functions,
(B) Optional functions

(A) Main functions:

  1. Accept/collect deposits
  2. Lend money
  3. Invest
  4. Carry out inter-banking transactions

(B) Optional functions:

  • Look after the financial transactions of the customers
  • Carry out foreign exchange (forex) transactions
  • Issue letter of credit
  • Issue traveller’s cheque
  • Provide demand draft service
  • Provide information related to financial credit of its customer
  • Provide service as an under-writer
  • Provide other services such as ATM, Demat, Safe deposit Vault, etc.


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