Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY3 Marks
Question
Explain in detail the secondary functions of the Danxs.
✓
Answer
Secondary functions: Agency and utility services:
$1.$ Under this a bank provides various facilities to its customers as follows: Letter of credit $–$ Bank acts as a mediating agent for payment between exporter $($in India$)$ and Importer $($in foreign country$)$ especially when the parties are unknown to each other. Underwriting services . To pay tax challans Safe deposit vaults $($lockers$) –$ to store precious jewelry and documents safely Micro finance facilities $–$ providing finance to small business for overall development of the community and economy as a whole
$2.$ Provide various facilities with changing time: In today’s scenario, banks have shifted from physical presence to digitalization i.e. services in electronic form. The transfer of money from one customer of a bank to the other customer of the same or different bank is made easy by using electronic medium $($done through facilities like $NEFT$ and $RTGS)$ without using cheques. Customers can now buy movie ticket, goods, and make payments through internet banking or mobile banking. $DEMAT$ account is also one of the latest facilities provided by banks in which the customers can hold buy or sell shares and debentures through electronic form.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.