What are the Main Functions of a Bank?

These are the core, fundamental jobs of any commercial bank:

• Accepting Deposits: The bank provides a safe place for the public to keep their savings. They open different types of accounts like Savings Accounts, Current Accounts (for businesses), and Fixed Deposits (FDs), paying the public a small interest for keeping money with them.
• Granting Loans and Advances: The bank takes the massive pool of money deposited by the public and lends it out to businesses, farmers, and students as loans. The bank charges a much higher interest rate on these loans. The difference between the interest they pay to depositors and the interest they charge borrowers is the bank's profit.

Modern banks do much more than just taking and giving money. They act as your personal financial agent:

• Fund Transfers: Banks allow you to instantly transfer money to anyone in the world via NEFT, RTGS, or UPI.
• Cheque Collection: If someone gives you a cheque from another bank, your bank will clear it and bring the money into your account.
• Paying Bills: You can set up your bank account to automatically pay your electricity bills, insurance premiums, and phone bills every month.

• Locker Facility: Banks provide highly secure steel lockers inside massive vaults where you can safely store your gold jewelry and important property documents.
• Foreign Exchange: If you are travelling abroad, the bank will take your Indian Rupees and give you US Dollars or Euros.
• Issuing Cards: Banks issue ATM Debit cards and Credit cards to make shopping cashless and easy.