Question

What functions does the State Bank perform as a commercial bank?

Hint:

Commercial Banks = Accept deposits + Provide loans + Offer agency services.

Answer 1

Step 1: Primary functions.
- Accepting deposits from the public.
- Providing loans and advances.
Step 2: Secondary functions.
- Acting as an agent (collection of cheques, drafts, etc.).
- Providing facilities like overdraft, safe deposits, and remittances.
Step 3: Conclusion.
Thus, the State Bank, as a commercial bank, performs both deposit-taking and lending functions, along with customer service and financial facilities.