Secondary Functions Of Commerical Banking


 
 
Concept Explanation
 

Secondary Functions Of Commercial Banking

In addition to the primary functions of accepting deposits and leading money, banks perform a number of other functions, which are called secondary functions. These are as follows: Issuing letters of credit, travellers cheque, etc.

  • Undertaking safe custody of valuables. important documents and securities by providing safe deposit vaults or lockers.
  • Providing customers with facilities of foreign exchange dealings.
  • Transferring money from one account to another, and from one branch to another branch of the bank through cheque, pay order and demand draft.
  • Standing guarantee on behalf of its customers, for making payment for purchase of goods, machinery, vehicles etc.
  • Collecting and supplying business information.
  • Providing reports on the credit worthiness of customers.
  • Providing consumer finance for individuals by way of loans on easy terms for purchase of consumer durable like televisions, refrigerators, etc.
  • Educational loans to students at reasonable rate of interest for higher studies, especially for professional courses.
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    Sample Questions
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    Question : 1

    ATM means

    Right Option : C
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    Question : 2

    ATM can be used for _____________________

    Right Option : D
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    Question : 3

    ATM stand for _________________

    Right Option : B
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