State with reasons whether you agree or disagree with the following statements.
2. Commercial banks perform many general utility services.
Answer: Yes, I agree with the given statement. Apart from providing primary services and agency services to their customers, banks also provide some general utility services. For providing such services, banks charge some commission.
These utility services include: -
i. Commercial banks provide safe deposit vault/ locker facility to its customers to keep their valuables.
ii. Remittance of funds through mail transfer,demand draft, mail transfers, etc.
iii. The facility of letters of credit by commercial banks enables traders to purchase goods on credit.
v. Commercial banks provide reference/ status report with respect to financial standing, frequency of payment.
vi. Underwriting facility for shares and debentures is another function performed by commercial banks.
