question_answer

Mr. X applied for a loan from State Bank of India to expand his shop under Pradhan Mantri Mudra Yojna. Later he purchased a home by taking a home loan from bank. Then he purchased a car on EMI financed by a bank. He also has a saving account with the bank. All his EMIs are getting deducted from his saving account. He has also taken a locker facility from the bank where he keeps his important documents and valuables.

(a) Identify primary functions of commercial bank that Mr. X is availing of.

(b) Identify agency functions of commercial bank Mr. X is availing of.

(c) Identify general utility functions of commercial bank Mr. X is availing of.

Answer:

Ans.     (a) (i) Accepting of Deposits: He also has a saving account with the bank.

(ii) Granting of Loans: Mr. X applied for a loan from State Bank of India to expand his shop under Pradhan Mantri Mudra Yojna. Later he purchased a home by taking a home loan from bank. Then he purchased a car on EMI financed by a bank.

(b) Payments and Acceptance of collections on behalf of client: All his EMIs are getting deducted from his saving account.

(c) Locker Facility: He has also taken a locker facility from the bank where he keeps his important documents and valuables.