The services rendered by banks.
Banks perform certain agency function because they act as agents of their customers in a number of ways. Agency functions are performed for and on behalf of their customers.
The following are some of the agency functions performed by banks:
i. It collects cheques, bills, promissory notes, interest, dividend and subscriptions on behalf of customers. For collection of the above things, bank usually charge a small commission called collection charges.
ii. It facilitates in remitting funds on behalf of customers by drafts, mail transfer and telegraphic transfer.
iii. It facilitates in purchase and sale of securities on behalf of customers.
iv. It acts as an executor, trustee and attorney for the wills of the customers.
v. It performs all the standing instructions issued by the customers and arranges the payment of insurance premium.
vi. It acts as an agent in obtaining passport, traveler’s ticket and secure passage for the customers.