What are the functions of a bank?
Dear Student,
Following are the functions of banks:
A- PRIMARY FUNCTIONS
1- Acceptance of deposits- Those who have surplus of money can open an account in bank and can submit that surplus in the bank in return banks pay interest to their customers on that amount.
2. Granting of Loans- Bank lends money to those who are in need of money and in return charges interest from the borrowers.
B- SECONDARY FUNCTIONS
1.Banks provide cheque facility, which make payment convenient, safe and cheap.
2.Banks perform various agency functions like collecting financial instruments on behalf of customers and making payment on their behalf. In return bank charges commission from their customers.
3. Banks provide locker facility for keeping jewellery and other valuable safe.
4. Banks provide facility of transferring funds from one account to another.
Regards
Following are the functions of banks:
A- PRIMARY FUNCTIONS
1- Acceptance of deposits- Those who have surplus of money can open an account in bank and can submit that surplus in the bank in return banks pay interest to their customers on that amount.
2. Granting of Loans- Bank lends money to those who are in need of money and in return charges interest from the borrowers.
B- SECONDARY FUNCTIONS
1.Banks provide cheque facility, which make payment convenient, safe and cheap.
2.Banks perform various agency functions like collecting financial instruments on behalf of customers and making payment on their behalf. In return bank charges commission from their customers.
3. Banks provide locker facility for keeping jewellery and other valuable safe.
4. Banks provide facility of transferring funds from one account to another.
Regards