Banks also perform certain agency functions for and on behalf of their customers. The agency services are of immense value to the people at large. The various agency services rendered by banks are as follows:
Collection and Payment of Credit Instruments
Banks collect and pay various credit instruments like cheques, bills of exchange, promissory notes etc., on behalf of their customers.
Purchase and Sale of Securities
Banks purchase and sell various securities like shares, stocks, bonds, debentures on behalf of their customers.
Collection of Dividends on Shares
Banks collect dividends and interest on shares and debentures of their customers and credit them to their accounts.
Acts as Correspondent
Sometimes banks act as representative and correspondents of their customers. They get passports, traveller’s tickets and even secure air and sea passages for their customers.
Banks may also employ income tax experts to prepare income tax returns for their customers and to help them to get refund of income tax.
Execution of Standing Orders
Banks execute the standing instructions of their customers for making various periodic payments. They pay subscriptions, rents, insurance premia etc., on behalf of their customers.
Acts as Trustee and Executor
Banks preserve the ‘Wills’ of their customers and execute them after their death.