Agency related Functions of Commercial Banks

Explain the agency functions of commercial banks ? What are miscellaneous functions of bank ?

Contents

Agency related Functions of Commercial Banks

Banks act as agents of their customers. The agency functions performed by the commercial banks are given as :

They Work as Trustee and Executors – Banks act as trustees and – attorneys of their customers. They advice on complicated matters. Valuable wills are kept with banks which are safely executed after the death of the person, according to his own wish.

Miscellaneous Functions

Miscellaneous functions of the bank includes the following work :

1. Safe Custody- Bank preserves valuable ornaments, jewelleries, documents, deeds etc. for safe custody. They protect these articles from theft and fire. These articles are kept in lockers for which bank takes minimum charges for its services.

2. To provide Traveller Check- Bank grant travel checks to its customers with which they are safeguarded from carrying huge cash with him.

3. Granting Credit Information to its Depositors Bank is well aware of the financial position of its customer so, it provides information related to the credit.

4. Acceptance of Bills of Exchanges – Bank accepts and discounts the bill of its customer which is very beneficial to the customers.

5. Arrangement of Foreign Exchange – Bank arranges the foreign currency for its customers.