Banks act as agents of customers and provide certain services:
1. Transfer of Funds: Banks issue demand drafts, bankers’ cheques, travelers’ cheques, etc. and help in transfer of funds from one place to another.
2. Periodic Payment of Premiums, Rent, etc: After instruction from the customers, banks undertake the monthly payment of insurance premium, rent, telephone bills, etc., from the accounts of customers.
3. Collection and Payment of Cheques: On behalf of customers, bank collect the cheques deposited into the accounts of customers from other banks and deposit cash in the customers’ accounts.
4. Acting as Executors, Trustees and Attorneys: Banks act as executors of will of the customers and implement their will after their death.
5. Conduct Share Market transactions: A Demat account should be opened with Depository Participant and that demat account should be linked with savings bank account by the customer.
6. Preparation of Income Tax Return: Banks prepare the annual income tax return on behalf of the customers and provide income tax related advice to them. .
7. Dealing in Foreign Exchange: Banks buy and sell foreign currencies on behalf of customers.
8. Acting as Correspondent: Banks act as correspondent of customers and receive travel, ticket, passport, etc.
