Explain any four services offered by banks. 

Asked by Topperlearning User | 27th Jun, 2016, 02:47: PM

Expert Answer:

Services provided by banks:

  1. Issue of bank draft: A bank draft is drawn by a bank on its own branch or in another branch. It is a kind of cheque which is a safe and convenient method of remitting money from one place to another place.
  2. Pay order or banker’s cheque: The bank draft which is payable within the city is known as a banker’s cheque. It is also known as a local bank draft. Pay orders and bank drafts are issued by banks for local and outstation use, respectively. Commission charged for pay orders are lesser than that charged for bank drafts.
  3. Real Time Gross Settlement (RTGS): Transfer of funds from one bank to another bank on a ‘Real Time’ and ‘Gross’ basis is known as RTGS. ‘Real Time’ means the payment transaction has no waiting period and is settled as soon as the process ends. ‘Gross Settlement’ means the transaction is made without bunching with any other transaction.
  4. National Electronic Funds Transfer (NEFT): An individual, firm or company can transfer funds electronically from any branch of a bank to another individual, firm or company which has an account with any other branch of a bank within a country. 

Answered by  | 27th Jun, 2016, 04:47: PM