How do commercial banks serve the business community in our country? Briefly explain.
2 years ago
Banking
(i) Banks undertake collection of book debts, bills of exchange promissory notes dividend warrants, etc., which greatly facilitate business activities.
(ii) Foreign trade activities are also greatly facilitated by banks undertaking issue of letter of credit; acceptance and payment of documentary bills, and providing financial assistance by way of pre-shipment and post-shipment credit, etc.
(iii) An important service provided by banks to individuals and business firms is that of acting as a reference.
Susmita Sah
Jan 16, 2022