Question : Which of the following is not a function of commercial banks?
Option 1: Accepting deposits
Option 2: Granting loans
Option 3: Issuing currency notes
Option 4: Providing remittance services
Correct Answer: Issuing currency notes
Solution : The correct answer is (c) Issuing currency notes
Commercial banks perform several important functions in the financial system and provide various services to their customers.
The issuance of currency notes is the function of the central bank, such as the Reserve Bank of India (RBI) in India. Central banks have the authority to issue and regulate the supply of currency in an economy. Commercial banks handle currency in the form of deposits and withdrawals but do not have the power to issue currency notes.
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