The functions of the State Bank of India.
The Imperial Bank of India was nationalized in 1957 and after nationalization it was renamed as the State Bank of India. The functions of the commercial banks may be broadly classified into two categories called:
- Primary functions
- Subsidiary functions
The primary functions of the State Bank of India are as follows:
- Like other banks, it grants loans and deals in bills of exchange and hundies.
- If functions as a Govt. Bank where Reserve Bank of India does not exist.
- it undertake treasury functions on behalf of the government.
The subsidiary functions of the State Bank of India are as follows:
- It helps in issuing bank drafts at the time of transferring of funds.
- It helps in investing in securities.
- It purchases bills upto 15 months and issues foreign bills of exchange.
- It performs other banking functions of a commercial Bank.