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.