Which one of the following is considered as an agency function of commercial banks in India ?
Acceptance of deposits
Investment of surplus funds
Acceptance of income tax payments
Providing overdraft facilities
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC CDS-2 – 2022
– This includes services like collecting payments (like taxes, utility bills), paying subscriptions, acting as an executor or trustee, buying and selling securities on behalf of customers, and handling foreign exchange transactions.
– Primary banking functions include accepting deposits (creating liabilities for the bank) and providing loans and advances (creating assets for the bank). Investment of surplus funds and providing overdraft facilities fall under these broad categories (asset management and lending).