gs1medium

Consider the following statements: The functions of commercial banks in India include

  1. 1.Purchase and sale of shares and securities on behalf of customers.
  2. 2.Acting as executors and trustees of wills.

Which of the statements given above is/are correct?

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
▶ Answer & Explanation

Correct answer: C. Both 1 and 2

Commercial banks in India perform a wide range of agency functions. These include acting as agents for their customers, which involves the purchase and sale of shares and securities. Additionally, they can act as executors, administrators, and trustees for the estates of deceased persons, managing their wills and trusts. These services reflect the comprehensive role banks play beyond traditional lending.

Source: UPSC gs1 2010

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