Agency Functions Of Commercial Banks Images. In fact commercial banks as their name suggests axe profit seeking institutions i e. Banks function in the form of agents and representatives of their customers.
However banks charge fee or commission for these functions. These functions are explained as. Commercial banks are able to transfer funds of a customer to other customer s account through the cheques draft mail transfers telegraphic transfers etc.
Commercial banks grant loans in the form of overdraft cash credit and discounting bills of exchange.
Refer to crucial functions of commercial banks. However banks charge fee or commission for these functions. Agency functions commercial banks act as the agents of their customers and perform agency functions as transfer of funds from one place to another. Collecting customer s funds and crediting the same to their accounts.
