Recurring Deposit Account : In this account, the accountholder is required to deposit a specific amount every month for a specified period of time. After the expiry of the specified period, the depositer gets back his total deposit amount with interest thereon. A passbook is issued to the depositer but no cheque book is issued.
Agency functions of a Commercial Bank are :
(a) Collection of payments : The commercial banks collect the payment of the bills of exchange, promissory notes, cheques, dividends etc. on behalf of its customers.
(b) Acts as trustee or executors agents : They act as trustees or executors and deal with the financial matter, relating to other institutions on behalf of the customers. They act as the agents or representatives of their customers for other hand banks and financial institutions, inside the country and abroad.
(c) Sale and purchase of securities: The bank also buy and sell shares and securities, on behalf of their customers.
(d) Providing guarantee: Bank serves as a guarantor on behalf of their customers. By giving guarantees, bank enable their customers to obtain credit and finance from other services.
(e) Making payments : The banks also transfer funds from one branch of the another branch and one place to another as per instructions of their customers. The bank on behalf of the customers, arrange for the payment of loan installments, interests, insurance premium, taxes, etc.