Q.State any four primary functions of a commercial bank.

A commercial bank's core business rests on accepting money from some customers and lending it to others.

1. Accepting current deposits — withdrawable at any time without notice, mainly used by businesses for day-to-day transactions, generally interest-free.
2. Accepting savings and fixed deposits — savings deposits allow individuals a limited number of withdrawals and pay a modest interest rate; fixed (time) deposits lock in funds for a stated period at a higher rate.
3. Granting cash credit and overdraft facilities — a borrower is allowed to draw funds up to a sanctioned limit against a current account or against security, paying interest only on the amount actually used. …

Confusing 'primary' functions (deposits and loans, the bank's core business) with 'secondary' functions (agency and general utility services such as collecting cheques or is …