General Utility Functions : Commercial banks offer the following utility services to their customers.
(a) Safe Custody of Valuables : Banks offer safe deposit vaunts (called lockers) where customers can keep jewellery, shares, debentures, insurance policies and other valuables. In this way banks assume safe custody of valuables and important documents of customers. Banks charge rent for this service.
(b) Issue Letters of Credit, Travellers Cheques, etc : Commercial banks issue letters of credit to importers. They also issue cheques to travellers to make money available to them at the place of requirement. Travellers' cheques relieve the tourists from the problem of carrying cash during the tour. Banks also provide credit card and ATM facilities.
(c) Underwriting of Capital Issues : Banks underwrite shares and debentures issued by public limited companies. In his way banks help them in raising capital from the market. Many commercial banks also offer merchant banking facilities to the corporate sector.
(d) Providing Credit Information : Banks provide information relating to credit worthiness of their customers. By certifying the credit worthiness of its customers, a bank facilitates credit transactions. Banks also collect information about credit worthiness of prospective buyers, on behalf of their customers.
(e) Advice on Financial Matters : Banks provide valuable advice to their customers on matters relating to finance and investment.