· The basic function of any bank is to accept deposits from the public for the purpose of lending loans to the public and invest the amount in securities.
· Acceptance of deposits and lending loans are called as the primary functions of any bank
· The secondary functions at present are – selling gold coins, insurance products and mutual fund products. Apart from the above the banks open demat accounts and undertake remittance services namely; issue of demand drafts, online remittance facilities like RTGS and NEFT etc.,
· The banks also provide safe deposit locker facilities and safe custody services to the customer
Nowadays on account of introduction of core banking solution in commercial banks in India, a large number of secondary functions are carried out by the banks in India
The following are some examples:
Real time gross settlement
National electronic funds transfer
RTGS and NEFT are online remittance facilities and a customer can send money from his account with one branch of one bank to the account of another person with another branch of the same bank or some other bank.