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  • What Are The Agency Services Rendered by Bank?: Funds Transfer Service

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    Ankitha Theres
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    Banks provide several agency services for customers including collecting and paying credit instruments, purchasing and selling securities, collecting dividends and interest, acting as a correspondent by securing travel arrangements, providing income tax consultancy, executing standing payment orders, and acting as a trustee and executor of wills.

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    bank management

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    Bank Managemnt

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    Banks provide several agency services for customers including collecting and paying credit instruments, purchasing and selling securities, collecting dividends and interest, acting as a correspondent by securing travel arrangements, providing income tax consultancy, executing standing payment orders, and acting as a trustee and executor of wills.

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    91 views2 pages

    What Are The Agency Services Rendered by Bank?: Funds Transfer Service

    Uploaded by

    Ankitha Theres
    Banks provide several agency services for customers including collecting and paying credit instruments, purchasing and selling securities, collecting dividends and interest, acting as a correspondent by securing travel arrangements, providing income tax consultancy, executing standing payment orders, and acting as a trustee and executor of wills.

    Copyright:

    © All Rights Reserved
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    of 2

    Funds transfer service: Useful for sending and receiving money from all over the world.

    The
    products that cover these services are Demand Drafts, Bankers Checks/Pay orders,
    EFT(Electronic Funds Transfer ),etc.
    The names given to these services may vary among the banks but basically they are the same.

    2) Forex service: You can buy the foreign exchange for any purpose of expenditures like
    travel, buying merchandise,etc..and sell the same to the bank when you earn or receive from
    abroad . Of course, these forex transactions are subject to the rules and regulations prevailing
    in a country and they are provided by only those bank branches which are approved by the
    Banking Authority or Regulator for this purpose.

    3) Custodial Service: You can keep your valuables like jewels, documents, etc..under this
    service which is commonly known as Locker facility(Safe Deposit Vaults in banking
    parlance.The bank will collect a nominal fee for the service.

    4) Gold sale: You can buy pure gold for self consumption or for trading by the jewelry
    businesses.Here also, only a few selected branches of banks or banks are allowed to provide
    this .The products usually range from a coin to a 100 gm biscuit or bar.

    5) Investment service: Invest your money in the mutual funds run by the banks.The service
    comes as Portfolio service( the decision to maximize the returns on your money is left with the
    banker or portfolio manager) and as Stand-alone product where the decision to get maximum
    returns is borne by you. Both have the plus and minus but these products are offered to suit
    the convenience of the investors.

    6) Insurance sale: A range of insurance products covering the risk of life, health, assets like
    vehicle, credit and debit cards, travel,etc..are offered by almost all the banks by themselves or
    in collaboration with the leading insurer companies ,which again may be local or
    multinational entities.

    7) Card services: Primarily intended for safety and convenience purpose but now, has become
    a payment mode and a symbol of economic status.The card products usually are called as
    Debit card, Credit card .

    8) eBanking: also known as Netbanking or Internet banking is the latest and most
    convenient facility of the banks .You can get id and password to operate your account online :
    for transfer of funds to another account in the same bank or another bank. You can keep the
    surplus funds in fixed deposit by using this facility.The best use of this facility is for shopping
    online.

    What are the Agency Services rendered by


    bank?
    Banks also perform certain agency functions for and on behalf of their customers. The agency
    services are of immense value to the people at large. The various agency services rendered by banks
    are as follows:
    Collection and Payment of Credit Instruments
    Banks collect and pay various credit instruments like cheques, bills of exchange, promissory notes
    etc., on behalf of their customers.

    Purchase and Sale of Securities


    Banks purchase and sell various securities like shares, stocks, bonds, debentures on behalf of their
    customers.

    Collection of Dividends on Shares


    Banks collect dividends and interest on shares and debentures of their customers and credit them to
    their accounts.

    Acts as Correspondent
    Sometimes banks act as representative and correspondents of their customers. They get passports,
    traveller’s tickets and even secure air and sea passages for their customers.

    Income-tax Consultancy
    Banks may also employ income tax experts to prepare income tax returns for their customers and to
    help them to get refund of income tax.

    Execution of Standing Orders


    Banks execute the standing instructions of their customers for making various periodic payments.
    They pay subscriptions, rents, insurance premia etc., on behalf of their customers.

    Acts as Trustee and Executor


    Banks preserve the ‘Wills’ of their customers and execute them after their death.

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