i) AGENCY FUNCTIONS
1) Collection of Dividend
The banks provide this facility to the shareholders of a company by collecting 'their dividend and depositing in their accounts.
2) Collection of Cheques
It acts as an agent in the collection & payment of Cheques, bills of exchange etc.
3) Brokerage services
The banks, if authorized by customers purchases & sells shares on his behalf thus adding to his profits.
4) Trust services
If a client asks his bank to act a trustee in the administration of business, the bank then performs these services & charges some commission.
5) Executor of instructions
The customer can instruct in writing to his bank to make a payment of a regular installment to any person.
7) Cheap Medium of Exchange
Each commercial has to issue its paying slip, cheque book etc. for the dealing of payment & receipt in the banks by depositor which acts as a cheap medium of exchange.
8) Act as Referee Bank also provides services of referee for its customer for credit worthiness of its customer. Banks keep the information in secrecy and provide them at the request of its customer.
9) Act as Agent In particular cases, the bank may act as an agent of its customers at home or abroad on the will of his customer to 3rd party.
ii) GENERAL UTILITY SERVICES The bank also provides general utility services which are as follows:
1) Facilitates Foreign Trade It provides finance' for foreign trade. Letters of credit are issued by the commercial banks for making the foreign payments.
2) Trade Information Supplier
In many counties, commercial banks publish information relating to trade, business & industry.
