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Question : Which of the following is not a function of commercial banks?

Option 1: Accepting deposits

 

Option 2: Granting loans
 

Option 3: Issuing currency notes

 

Option 4: Providing remittance services


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Issuing currency notes


Solution : The correct answer is (c) Issuing currency notes

Commercial banks perform several important functions in the financial system and provide various services to their customers.

The issuance of currency notes is the function of the central bank, such as the Reserve Bank of India (RBI) in India. Central banks have the authority to issue and regulate the supply of currency in an economy. Commercial banks handle currency in the form of deposits and withdrawals but do not have the power to issue currency notes.

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