Question

State any three functions performed by the banks other than accepting deposits and lending money which are fruitful to their customers.

Answer 1

i) Issue Letters of Credit/Guarantees on behalf of its customers; 

ii) Rent out Safe Deposit Lockers to its customers and allow them to operate the lockers; 

iii) Sell Third Party Products (TPPs) like Insurance products and Mutual Fund units to its customers. 

iv) Accept cheques / drafts from their customers in their favour, for collection and credit to their deposit accounts; 

v)Issue of drafts on outstation locations as required by customers;