Which of the following is a secondary function of the commercial banks?

Correct option is A

The correct answer is (A) Performing agency functions.

Explanation:
Commercial banks have primary and secondary functions. Primary functions include accepting deposits and advancing loans, while secondary functions involve agency and utility services. Agency functions include handling fund transfers, bill payments, and acting as trustees, making them a secondary function.

Information Booster:

• Primary Functions: Accepting deposits, granting loans
• Secondary Functions:
  • Agency Functions – Fund transfers, bill payments
  • Utility Services – Lockers, investment advisory
• Regulatory Authority:Reserve Bank of India (RBI)
• Current RBI Governor: (2025):Sanjay Malhotra
  
• Historical Background: RBI was formed under the Reserve Bank of India Act, 1934 and became operational in 1935

Additional Information:

• Opening Fixed Deposits – A primary function under deposit acceptance.
• Advancing Loans – A primary function for credit services.
• Opening of Current Account Deposits – Part of the primary function of deposit acceptance.