State the functions of Commercial Banks.

OR

What are the functions of Warehousing

Question

State the functions of Commercial Banks.

OR

What are the functions of Warehousing

Accepted Answer

>

> [!TLDR]
> Commercial banks perform primary functions (accepting deposits, lending) and secondary functions (agency services, general utility services such as lockers and remittances). Warehouses perform the function of scientifically storing goods between the time of production and consumption, and additionally provide risk-bearing, financing, processing and grading services.
>
> **Part 1 - Functions of Commercial Banks**
>
> 1. **Accepting deposits** — banks accept money from the public in various forms of accounts (savings, current, fixed, recurring), providing a safe place to keep money and (for most accounts) earning interest.
> 2. **Lending/advancing loans** — banks lend the deposited money to individuals and businesses in the form of loans, cash credit, overdraft and discounting of bills, earning interest and thereby also **creating credit**.
> 3. **Agency services** — acting as an agent for customers: collecting cheques/bills/dividends on their behalf, making payments of insurance premiums, rent, etc., and buying/selling securities.
> 4. **General utility services** — issuing demand drafts/letters of credit, providing locker facilities for safe custody of valuables, underwriting shares/debentures, dealing in foreign exchange, and providing ATM/debit-credit card facilities.
>
> **Part 2 (OR) - Functions of Warehousing**
>
> 1. **Storage** — the basic function: scientifically storing goods from the time of production until they are needed for consumption or sale, protecting them from damage, theft, wastage and the elements.
> 2. **Risk-bearing** — once goods are deposited in a warehouse, the risk of loss/damage from fire, theft or deterioration shifts to the warehouse-keeper, who is responsible for safe custody.
> 3. **Financing** — warehouses issue a **warehouse-keeper's warrant/receipt** against goods deposited, which the owner can use as collateral security to raise loans from banks. …

Q.State the functions of Commercial Banks.

Concept understanding — Company Formation Stages

Company Formation Stages — From Idea to Legal Entity

The Core Idea

Stage 1: Promotion

Stage 2: Incorporation

Stage 3: Subscription (or Capital Subscription)

Stage 4: Commencement of Business

Q.State the functions of Commercial Banks.

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