Q.Classify the functions of a commercial bank into their main heads.

A commercial bank's functions are organised under a standard two-level classification that separates the core banking activities from the additional services built around them.

Commercial bank functions are classified as follows:

1. Primary Functions

• (a) Accepting deposits (savings, current, fixed, recurring)
• (b) Lending money (loans, cash credit, overdraft, discounting of bills)

2. Secondary Functions

• (a) Agency Functions — collecting/paying cheques and bills, collecting dividends/interest, paying standing bills, buying/selling securities, acting as trustee/executor, remitting funds
• (b) General Utility Functions — safe deposit lockers, demand drafts/traveller's cheques, letters of credit, underwriting, credit information, merchant banking, ATM/digital banking

Primary Functions are what make an institution a "bank" in the strict legal sense; Secondary Functions are the additional services that make a modern bank a comprehensive financial-services provider.

Listing individual services (like 'issuing a locker') without first organising them under the correct main head (Primary vs Secondary, and Agency vs General Utility within Secondary).