Q.State any four Agency Functions performed by a commercial bank.

Agency functions are recognised by one common feature — the bank is carrying out a specific instruction on behalf of, and as an agent for, the customer.

Any four of the following, briefly explained, answer this question:

1. Collection and payment of cheques, bills and promissory notes on the customer's behalf.
2. Collection of dividends, interest and other income due on the customer's investments.
3. Payment of insurance premiums, rent and other periodic bills as per standing instructions.
4. Purchase and sale of securities on the stock exchange, on the customer's instruction.
5. Acting as a trustee or executor for a customer's property or estate. …

Naming a General Utility Function (like issuing a locker or a letter of credit) as an Agency Function — the distinguishing test is whether the bank is acting on a specific customer instru …