Functions of commercial banks
- Collect deposits from government, individuals and foreigners and open account in their names.
- Advance loan on sufficient securities of gold, ornaments, government security and promissory notes.
- To issue loan to individual.
- Issue letters of credit (bond shares, datedness, traveler’s cheque, draft etc.)
- Transfer of money.
- Exchange of foreign currency.
- Provide credit for the development of agriculture, irrigation, industries, trade and commerce, hydro-electricity production and other development works directed by HMG.