Commercial Bank - 

          Commercial banks are the most common and important type of banking institutions. A commercial bank is a monetary institution which serves the interests of its depositors by providing security to the deposits of money and on the other hand, makes profits by investing such deposits in the protective measures by extending loans.

Agency Functions of Commercial Bank -

Bank perform agency functions for their customers as given below -

1) Collection of cheques, Bills etc - 

           Bank collect the cheques, bills, Drafts and other Negotiable Instruments deposited by their customers.

2) Making and collecting payments - 

           Banks make payments of the premium of insurance policies, house rent etc. On behalf of their customers. Similarly, they accept/recover rents and other deposits on behalf of their customers.

3) Accepting Bills -  

            Banks accept bills of exchange as per orders of their customers. They make also the payment of cheque, bills and hundis of their customers.

4) Remittance facilities- 

            Bank remits money from one place to another for the facility of their customers.

5) Purchase and Sale of Shares and Securities - 

            Bank purchase and sell shares and securities etc. As per order of their customers.

6) Reference Letter- 

           Bank sends the information of the financial condition of their customers to the Businessman of the country and abroad. Similarly, they give the information of the financial condition of other Businessman to their customers.

7) Acting as Trustees-

           Banks take the liability for management of the properties of their customers and act as trustees.

See also...

Classification of Commercial Banks


  1. Excellent read. I just passed this onto a friend who was doing a little research on that. He just bought me lunch as I found it for him! So let me rephrase: Thanx for lunch! mold remediation

  2. This was really an interesting topic and I kinda agree with what you have mentioned here! Phenolic Lockers

  3. Thank you very much for writing such an interesting article on this topic. This has really made me think and I hope to read more. disinfectant cleaning services

  4. During the 1980s, use of innovation for the back office activities of the banks prevailed the scene. It was through bookkeeping of exchanges and assortment of MIS. what is a test bank

  5. Thanks for a very interesting blog. What else may I get that kind of info written in such a perfect approach? I’ve a undertaking that I am simply now operating on, and I have been at the look out for such info. testbank

  6. Enjoyed every single word of your blog article. Thanks to share it!
    hitachi 1.5 ton 3 star split inverter ac

  7. This is very educational content and written well for a change. It's nice to see that some people still understand how to write a quality post.! Glass Partitions

  8. i am always looking for some free stuffs over the internet. there are also some companies which gives free samples. 먹튀검증

  9. Operational expense are essential for a financial plan thusly the expense of having the premises cleaned necessities to find a way into the designated sum.commercial cleaning melbourne

  10. Great post, you have pointed out some fantastic points , I likewise think this s a very wonderful website. 먹튀검증

  11. It is a fantastic post – immense clear and easy to understand. I am also holding out for the sharks too that made me laugh. BizOp


See Also..