Current Affairs Current Affairs - 27 May 2015 - Vikalp Education

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Current Affairs - 27 May 2015

Employees of Diamond export company booked in Mumbai
  • MUMBAI: The Mumbai police have arrested two event organizers in the case of the mysterious aerial objects that had encroached Mumbai airport airspace on Saturday. Officials said that a diamond export company had organized a cricket tournament at Air India ground in Kalina on Saturday. The organiser, without any police permission, set off air balloons in the airport airspace for advertising his brand during the cricket tournament. A case of negligence has been registered at the airport police station. The accused will be produced before a local court on Tuesday.

    The mysterious flying objects had sent security agencies in a tizzy. The Mumbai police had taken a suo-moto initiative to investigate the aerial objects as they are one of the agencies concerned with overall security.

    Besides the Mumbai Police, the Indian Air Force, the Central Industrial Security Force, the DGCA, the Intelligence Bureau and the Bureau of Civil Aviation Security had been looking into the matter.

    The aerial objects were spotted around 5.55 pm on Saturday rising from Kalina side. "A pilot with Jet Airways and another with Indigo noticed five of these aerial objects. An airport worker clicked their photographs. Air traffic was briefly halted by the ATC. We received intimation around 6.15 pm and made a round of the entire premises but could not spot the aerial objects theb. Staff at the ATC got busy with air traffic co-ordination and did not spot where the aerial objects landed," senior inspector R Nagbhire of domestic airport police had told TOI. Nagbhire had also alerted the Juhu police apprehending that the aerial objects may land at Pawan Hans.

World optimistic about India, PM Modi says on govt's first anniversary
  • NEW DELHI: Prime Minister Narendra Modi on Tuesday said the world is optimistic about India and is enthusiastic about exploring the opportunities India has to offerThe Prime Minister also expressed his happiness to see India on "the fast path of development".

    On the first anniversary of his government, Prime Minister Narendra Modi took to Twitter and wrote an open letter to the nation to highlight the achievements of one year of NDA rule.

    "The last year has been characterized by full transparency, quick reforms and strengthening of our federal structure," the PM tweeted in the morning.

    In a message to citizens on the first anniversary of his government, Prime Minister said the nation can be proud of the fact that it has an improved image on the international front and is determinedly marching forward to achieve its overall goal of providing welfare to the poor and lifting the marginalized sections of society.

    In the message, Prime Minister Modi described himself as a "Pradhan Sevak", and adds that he was fulfilling his responsibilities "with that bhakti".
    "Antyodaya has been the principle of our political agenda. We have always kept in mind the welfare of the poor, marginalized, labourers and farmers. The Jan Dhan Yojana, opening a bank account for all families, PM Jeevan Jyoti Bima Yojana and the Atal Pension Fund are proof of this goal of Annandaata Sukhi Bhava. That is our supreme goal," he said.
    "When our government was formed, the economy was in doldrums and prices were rising. I am happy to say that India is on the fast path to development. The entire environment is suffused with a new enthusiasm. On the international front, India's image has improved. Foreign investment has increased. Make in India and Skill India programmes are intended to create jobs in youth," he further stated in his message.

    "Our goal is to change the way our villages are by working to provide basic facilities. Like, every family should have 24-hour electricity, clean drinking water, toilets, roads and internet connectivity, so that the quality of life improves in villages. We are doing the job of connecting -- from the borders of the country to the ports of the country, through roads and railways, and also through Digital India and connectivity," the Prime Minister's message stated.

Gujjar stir: Western Railway losing Rs 15cr daily due to train cancellation
  • MUMBAI: Frequent cancellation of trains on Delhi-Mumbai route due to ongoing agitation by Gujjars in Rajasthan is causing Western Railway a revenue loss to the tune of Rs 15 crore per day.

    "The revenue collection per day has dipped by Rs 12-15 crore as around 15-20 trains, including freight trains, are getting cancelled," an official from commercial department of WR said here today. 

    Gujjars have been blocking the rail track in Bharatpur district amid a stand-off with the government over their demand for five per cent reservation.

    "It would have been a bit less hard hitting had only passenger services been affected. But unfortunately, freight services have also been cancelled which has added to our concerns," the official said on condition of anonymity. 

    Among trains cancelled so far were August Kranti Rajdhani Express, Golden Temple Mail, Mumbai Central-New Delhi Duronto Express, Mumbai Central-Firozpur Janta Express while dozens of trains are running behind schedule or are being operated through diverted routes.
    When contacted, Western Railway chief PRO Sharat Chandrayan said various alternatives are being worked out to ensure smooth flow of traffic. 

    "We have explored the possibilities of running few trains such as Rajdhani Express and Paschim Express through diverted routes, which are reaching their destinations late by 8 to 10 hours," he said.

    Chandrayan said WR has launched helplines, set up special refund counters and assistance booths at major stations, including Mumbai Central and Bandra Terminus, for the convenience of passengers. 

    Meanwhile, representatives of railway passengers have slammed the political leadership for "failing" to break the deadlock over the Gujjar agitation. 
    "No government wants to displease the Gujjar community as they lack political will. I feel only court can solve this situation," said Rajiv Singal, a Divisional Railway Users Consultative Committee (DRUCC) member. 

American media critical of Narendra Modi's first year in power
  • NEW YORK: As Prime Minister Narendra Modi- led government marks its first year in office on Tuesday, American media has taken a critical view of his accomplishments, saying his flagship 'Make in India' drive is "so far mostly hype", job growth remains sluggish amid "outsize expectations".

    "India's Modi at One Year: 'Euphoria Phase' Is Over, Challenges Loom," reads a headline in the Wall Street Journal of an article on Modi's first year as Prime Minister.

    "A year after Indian voters handed Narendra Modi a once-in-a-generation mandate for change and economic revival, messy realities are sinking in," the WSJ report said.

    It said that Modi's 'Make in India' drive, aimed at supercharging manufacturing growth, " is so far mostly hype".

    It cited economic parameters like exports to say that the "economy is merely limping along".

    Inflation-adjusted lending for capital investment last year fell to a level not seen since 2004, it said adding that exports were down for the fifth straight month in April, corporate earnings were dismal and foreign institutional investors have pulled around USD 2 billion out of Indian stocks and bonds in May so far.

    The New York Times, in a news analysis, said Modi must face the reality that much of his agenda is still only potential.

    "From abroad, India is now seen as a bright spot, expected to pass China this year to become the world's fastest-growing large economy. But at home, job growth remains sluggish. Businesses are in wait-and-see mode. And Modi has political vulnerabilities, as parliamentary opposition leaders block two of his central reform initiatives and brand him 'anti-poor' and 'anti-farmer'," the NYT article titled 'After a Year of Outsize Expectations, Modi Adjusts His Political Course for India' said.

    It said "most formidable of all is a problem" Modi has "made for himself: outsize expectations that he would sweep away constraints to growth in India, like stringent laws governing labour and land acquisition.

    The NYT quoted senior vice president at leading Indian garment exporter Orient Craft's Vimarsh Razdan as saying that the Modi government's "image became larger than they themselves.

    "They have become superheroes. And everyone knows superheroes don't exist," he said in the report.

    The WSJ article said that while Modi has swaggered across stages from New York to Paris to Sydney, helping put the country back on investors' maps, "on other key fronts, Modi has moved less decisively, frustrating investors who hoped for bolder change after last year's election."

    His government has avoided privatising state-run banks and companies, which could trigger unpopular job cuts.

    Despite vows to improve India's reputation for unpredictable tax collection, the government has hit investors with demands for back taxes they say they should not have to pay, it said.
    The leading US dailies did give credit where due to the Modi government, saying as he marks the anniversary of his swearing in, he can point to some accomplishments.

    The WSJ report said Modi has allowed more foreign investment in railways and defence and helped cut red tape.

    His government has also deregulated fuel prices and permitted private competition in coal mining--"market-friendly moves designed to attract investment."

    His administration has also helped open millions of bank accounts for the poor and created new pension and insurance programs.

    It quoted Krish Iyer, president and chief executive of Wal-Mart Stores Inc in India, as saying that the company is "seeing a lot of progress in ease of doing business. We feel encouraged by the market- and consumer-driven policies of the government."

    The NYT analysis said chief executives feel that since Modi came to power, India's business culture has "indeed changed".

    "They rejoice that they no longer have to notarize all documents submitted to the government and say that it is far easier to find bureaucrats at their desks during the workday," it said.

    "By most measures, India's economy has had a good year," the NYT report said adding that India is heavily reliant on imported oil, and plunging prices have cut the cost of government fuel subsidies, allowing the authorities to rein in a chronic budget deficit.

    Inflation fell to 4.87 per cent in April and foreign direct investment has risen by more than 25 per cent, to USD 28.8 billion in the 2014-15 fiscal year.

    It noted other "flurry of changes" that the Modi government introduced including deregulating prices for diesel, petroleum and cooking gas, and raising limits on foreign investment in the defense and insurance sectors to 49 per cent.

    Coalfield leases, found to have been sold at artificially low prices, were reallocated through a transparent process as were telecom spectrum allocations, it said.

Enough food stock to fight weak monsoon: Govt
  • Enough food stock to fight weak monsoon: GovtNEW DELHI: India's adequate food stocks would help contain inflation, even if summer monsoon rain turns out to be weak, chief economic adviser Arvind Subramanian said on Tuesday. 

    The June-September monsoon season is vital for India as half its croplands lack irrigation, but a forecast of less rain than usual this summer due to the emergence of the El Nino has threatened farm output. 

    India's retail inflation in April cooled to a four-month low of 4.87 per cent on slower annual increases in food costs, government data showed earlier this month. 

Bihar polls very important, doors open for new allies, Amit Shah says
  • NEW DELHI: Hinting at the possibility of joining hands with former chief minister Jitan Ram Manjhi in Bihar polls, BJP president Amit Shah on Tuesday said talks are on and his party's doors are open for new allies. 

    With Bihar polls, due later this year, seen as a crucial test for the saffron party after it was routed in the Delhi assembly election, Amit Shah stressed that the BJP was giving it "great importance" and expressed confidence that the party will get a majority in the state it has never ruled on its own. 

    Asked whether his party would go to polls with existing allies or join hands with likes of Manjhi and expelled RJD MP Pappu Yadav, he said, "Presently, talks are on. Our doors are open." 

    Shah, who did not name any prospective ally, was speaking to reporters at the party headquarters.

    Party sources said BJP could ally with Manjhi, who comes from politically crucial Mahadalit community. However, the party is unlikely to join hands with Pappu Yadav. 

    Asked if the Bihar election was test for him after the defeat in Delhi, Shah said every poll is a "test" for him and went on to add that the party was taking it very seriously. 

    "We are taking it very seriously and attaching great importance to it," he said. 

    Ram Vilas Paswan-led LJP and Upendra Kushwaha-led RLSP are BJP's existing allies from the state. 

    BJP is pulling out all stops to vanquish its former ally, JD(U) leader and Bihar chief minister Nitish Kumar, who has joined hands with RJD's Lalu Prasad. 

    With differences between Kumar and Prasad coming to fore, BJP believes it can wrest the state from the two Bihar satraps who together have ruled it for the last 25 years. 

    JD(U) and RJD had earlier announced that they had merged with four other 'Janata Parivar' offshoots to take on BJP but their competing interests have derailed the exercise and it is not clear yet if both will fight the polls as allies.

Black money: Switzerland discloses names of two Indians
  • BERNE: Two Indian women figure among scores of foreign nationals with Swiss bank accounts, whose names have been made public by Switzerland in its official gazette for being probed in their respective countries.

    Making public these names, the Swiss federal tax administration (FTA) has asked the two Indians to file an appeal within 30 days before the federal administrative court if they do not want their details to be shared with the Indian authorities under their "mutual assistance" treaty on tax matters.

    However, no further details — other than their dates of birth — were made public for the two "Indian nationals" — Sneh Lata Sawhney and Sangita Sawhney.

    Similar is the case for other foreign nationals including the British, Spanish and Russians. However, in case of American and Israeli citizens, their full names have been withheld and they have been identified by their initials and dates of birth.

    The Indian government has been pushing the Swiss authorities for a long time to share information on the suspected tax evaders, while Switzerland has shared some details in cases where India has been able to provide some independent evidence of suspected tax evasion by Indian clients of Swiss banks.

    While there was no immediate reply to queries mailed to the FTA spokesperson in this regard, these names are being published in the Swiss federal gazette in the backdrop of the Swiss government being flooded with requests on suspected black money hoarders in Swiss banks from various countries including India.

Inside the Caliphate; Honeymoon in Raqqa
  • Inside the Caliphate; Honeymoon in RaqqaBEIRUT: The honeymoon was a brief moment for love, away from the front lines of Syria's war. In the capital of the Islamic State group's self-proclaimed ''caliphate,'' Syrian fighter Abu Bilal al-Homsi was united with his Tunisian bride for the first time after months chatting online. They married, then passed the days dining on grilled meats in Raqqa's restaurants, strolling along the Euphrates River and eating ice cream. 

    It was all made possible by the marriage bonus he received from the Islamic State group: $1,500 for him and his wife to get started on a new home, a family and a honeymoon. 

    ''It has everything one would want for a wedding,'' al-Homsi said of Raqqa, a riverside provincial capital that in the 18 months since IS took control has seen militants beheading opponents and stoning accused adulteresses in its main square. Gunmen at checkpoints in the city scrutinize passers-by for signs of anything they see as a violation of Shariah, or Islamic law, as slight as a hint of hair gel or an improperly kept beard. In the homes of some of the IS commanders in the city are women and girls from the Yazidi religious sect, abducted in Iraq and now kept as sex slaves.

    The Islamic State group is notorious for the atrocities it committed as it overran much of Syria and neighboring Iraq. But to its supporters, it is engaged in an ambitious project: building a new nation ruled by what radicals see as ``God's law,'' made up of Muslims from around the world whose old nationalities have been erased and who have been united in the ''caliphate.'' 

    To do that, the group has set up a generous welfare system to help settle and create lives for the thousands of jihadis men and women who have flocked to IS territory from the Arab world, Europe, Central Asia and the United States. From the day he declared the ''caliphate'' last summer, IS leader Abu Bakr al-Baghdadi urged not just fighters to come, but also doctors, engineers, administrators and other experts.

    ''It is not just fighting,'' said al-Homsi, who uses a nom de guerre. ''There are institutions. There are civilians (that IS) is in charge of, and wide territories . It must help the immigrants marry. These are the components of a state and it must look after its subjects.'' Al-Homsi spoke in a series of interviews with The Associated Press by Skype, giving a rare look into the personal life of an IS jihadi. 

    The new IS elite is visible in Raqqa, the biggest city in Syria under the extremists' rule. 

    Luxury houses and apartments, which once belonged to officials from Syrian President Bashar Assad's government, have been taken over by the new IS ruling class, particularly Iraqis who serve as senior military commanders, according to a member of an anti-IS media collective in the city who goes by the name of Abu Ibrahim al-Raqqawi. 

    A nearby nature preserve to protect deer has been turned into a military zone and is off-limits to civilians. Upper-level commanders get a car and fuel expenses paid. IS fighters are not charged a new entry fee at city hospitals that is imposed on others. IS has set up an English language nursery for children of English-speaking jihadis and bus rides from Raqqa to Iraqi and Syrian halves of the ''caliphate'' are also on offer. 

    Raqqa lies near the center of IS-controlled territory and is thus cushioned from the fighting around its edges. Its supermarkets are well stocked, though only IS fighters can afford the more luxurious imports like Nutella, said al-Raqqawi. Senior IS figures also own most of the plentiful Internet cafes in the city, run by satellite, and sell Internet access to residents at home by the megabyte. 

    ''The city is stable, has all the services and all that is needed. It is not like rural areas the group controls,'' al-Raqqawi said. ``Raqqa is now the new New York'' of the caliphate. 

    Helping fighters marry is a key priority. Aside from the normal stipend they receive, foreign fighters get $500 when they marry to help them put together their new household. Aymenn al-Tamimi, an expert on insurgent groups, said that when the IS took Iraq's second largest city Mosul last summer, one of the first things militants did was set up an Islamic court not just to pass sentences under their strict version of Shariah but also ``to give official Islamic State approval of marriages.'' 

    The 28-year-old al-Homsi got a particularly large bonus because his marriage, which took place in April, brought in a useful new recruit: His wife, who goes by the nom de guerre of Umm Bilal, is a doctor and speaks four languages. He said she will be of service to the caliphate. 

    The AP has spoken with al-Homsi repeatedly over the past three years, when he started as an activist covering the fighting in his home city of Homs in central Syria. An IT specialist before the civil war broke out, al-Homsi reported prolifically on social media about the two-year siege of the city by Assad's forces and often briefed reporters. 

    He was always an ultraconservative Islamist, and he told AP he had supported IS as early as 2013. Being caught in the punishing siege of Homs turned him from an activist to a fighter. He was among the last die-hards who remained holed up in a Homs neighborhood blasted constantly by government troops. When the siege ended in a May 2014 truce, al-Homsi emerged hardened and has since been a member of the Islamic State group. 

    It was from his social media activity that he met his wife. From Tunisia, she admired his comments and briefings online. 

    ''She has been an old follower of mine, during the siege,'' al-Homsi said with a slight smile. 

    After communicating with her through Skype and online, al-Homsi found out that her brother had joined the Islamic State group and was in the eastern Syrian city of Deir al-Zour. 

    As is customary for marriage, he went to ask her brother for her hand in marriage, he said. 

    The 24-year-old bride-to-be traveled through Algeria to Turkey, and from there to Raqqa with a group of other women joining IS. There, they were housed in a guesthouse for women which is also used as the headquarters for the IS female police corps known as the Khansa Squad. 

    ''It is a luxury place, with a garden, A/C, nice furniture, like any apartment in Europe'' so that immigrants don't feel estranged, said al-Raqqawi, the anti-IS media activist. Like others in his media collective, he uses a nickname for his security and doesn't specify his whereabouts. 

    In April, al-Homsi made the hazardous 150-mile (250-kilometer) journey from Homs to Raqqa to join her, bringing a recommendation from his local commander to prove his membership in IS.

    It was rare marriage of a Syrian male fighter _ an ''ansari'' as the group calls them with a foreign migrant, or a ''muhajira.'' The terms harken back to the time of Prophet Muhammad when he fled his home city of Mecca to the city of Medina to escape his opponents. His Meccan supporters who came with him were muhajireen, or ''immigrants,'' and the Medina residents who welcomed them were ansaris, or ''supporters.'' 

    Usually, foreign women marry foreign fighters in IS. Al-Homsi recalled the case of a French jihadi who was supposed to marry a French woman who came to join the group. He was killed in battle but he asked in his will that if that happened, his fiancee should marry his Swiss friend, al-Homsi said. She agreed. During the few days of their honeymoon, al-Homsi and his bride enjoyed Raqqa's relative tranquility, riverside promenades and restaurants, staying in an apartment al-Homsi borrowed from a friend. 

    Then the couple travelled back to the countryside around Homs, where IS fighters are holding ground against Assad forces and rival rebel groups. 

    There, al-Homsi used the money from his grant to prepare a home for his new bride _ and his four kittens, which he held up proudly in the Skype conversation with the AP. The couple is now expecting a new baby and hoping for a new cash injection with the childbirth, as the group can pay up to $400 as a bonus for each child. 

    For now the group provides him with a stipend of $50 a month and a similar amount for his wife, which he said are mainly for ''entertainment.'' 

    Everything else is paid for: He gets an allowance for his uniform and clothes, some household cleaning supplies, and monthly food baskets worth $65. 

    It is the duty of the state, al-Homsi said, to care for the fighter's family while he is away battling to expand the caliphate. Soon after speaking to the AP, al-Homsi was back on the battlefield, among the fighters who took over the ancient city of Palmyra earlier this month. ``The fighter is on the front,'' al-Homsi said. ``How will he bring food to the house?''

'Land acquisition bill not at cost of farmers’
  • NAGPUR: All Ambedkarites in the city too have joined hands to oppose the BJP government-driven Land Acquisition Amendment Bill which was recently proposed in Lok Sabha. All their views are seen corresponding to the other key position parties all over the nation who have called the proposed amendments anti-farmer and anti-poor.

    Opposing the earlier UPA law, as the amendment bought in by NDA does not look for the consent of farmers before acquiring their cultivable land, it has drawn a lot of criticism not only coming from political circle but also from various agriculture activists where a lot of them had actively protested in the city on Monday.

    A symposium on 'Land problems and politics over land acquisition law', organized by Samata Sainil Dal (SSD) at the Dr Babasaheb Ambedkar Sanskrutik Bhavan, Wardha Road, on Monday saw agriculture activists in the region turning out in good numbers. Activist Vilas Sukhdeve was the key speaker.

    Although it's very clearly, the overall land acquisition under selected projects will not impact more than 0.5 per cent of the cultivable land in India, the activists say that whoever looses the land should get compensation, no matter how much minor they are.

    "Let the government bring in bunch of corporate companies through this bill, but if that is being bought at the cost of all those farmers who may loose their cultivable land, then we aren't supporting this bill," said farm leader Vijay Jawandhiya.

    Calling the Land Acquisition Bill undemocratic, he said, "Even since Narendra Modi became PM he has been promoting his Make in India vision very well. But his current action while amending the bill, which mainly aims at promoting foreign companies, gives a different picture all together."

    Responding to the Union surface transport minister Nitin Gadkari Gadkari's recent statement made on Sunday at Kolhapur, that the bill has been amended with a view to generate huge pool of jobs for youngsters in rural who have to migrate to cities, SSD president Vimal Suryachimankar, confidently said, "Gadkari should recheck if he really aims at making jobs or transforming valuable people into mere labours, who may possibly get a very low-profile jobs at such corporate companies."

Primary and Secondary Functions of Commercial Banks
  • A commercial bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products. On day to day functioning it discharge many functions broadly classified as Primary and Secondary Functions mentioned below.
    I. Primary Functions
    1) Accepting Deposits
    2) Advancing Loans
    II. Secondary Functions
    1) Overdraft Facility
    2) Discounting Bills of Exchange
    3) Agency Functions
    4) General Utility Functions

    Primary Functions
    1. Accepting Deposits:
    It is one of the most important function of commercial banks. The commercial banks accept the deposits at lower rates and provide the loans. They accept deposits in several forms according to requirements of different sections of the society.
     The main kinds of deposits are:
    i) Current Account Deposits or Demand Deposits: 
    These deposits refer to those deposits which are repayable by the banks on demand.
    ★ Such deposits are generally maintained by businessmen with the intention of making transactions with such deposits. The business men usually deposit from their excess cash balances and withdraw when they need.
    ★ They can be drawn upon by a cheque without any restriction.
    ★ Banks do not pay any interest on these accounts. Rather, banks impose service charges for running these accounts.
    ii) Fixed Deposits or Time Deposits: 
    Fixed deposits refer to those deposits, in which the amount is deposited with the bank for a fixed period of time.
    ★ Such deposits do not enjoy cheque-able facility.
    ★ These deposits carry a high rate of interest.
    iii) Saving Deposits: 
    These deposits combine features of both current account deposits and fixed deposits.
    ★ The depositors are given cheque facility to withdraw money from their account. But, some restrictions are imposed on number and amount of withdrawals, in order to discourage frequent use of saving deposits.
    ★ They carry a rate of interest which is less than interest rate on fixed deposits. It must be noted that Current Account deposits and saving deposits are chequable deposits, whereas, fixed deposit is a non-chequable deposit.
    2. Advancing of Loans:
     The deposits received by banks are not allowed to remain idle. So, after keeping certain cash reserves, the balance is given to needy borrowers and interest is charged from them, which is the main source of income for these banks.
     Different types of loans and advances made by Commercial banks are:
    i) Cash Credit: The Cash credit refers to a loan given to the borrower against his current assets like shares, stocks, bonds, etc. A credit limit is sanctioned and the amount is credited in his account. The borrower may withdraw any amount within his credit limit and interest is charged on the amount actually withdrawn.
    ii) Demand Loans: Demand loans refer to those loans which can be recalled on demand by the bank at any time. The entire sum of demand loan is credited to the account and interest is payable on the entire sum.
    iii) Short-term Loans: They are given as personal loans against some collateral security. The money is credited to the account of borrower and the borrower can withdraw money from his account and interest is payable on the entire sum of loan granted.

    Secondary Functions
    1. Overdraft Facility: 
    It refers to a facility in which a customer is allowed to overdraw his current account up to an agreed limit. This facility is generally given to respectable and reliable customers for a short period. Customers have to pay interest to the bank on the amount overdrawn by them.
    2. Discounting Bills of Exchange: 
    It refers to a facility in which holder of a bill of exchange can get the bill discounted with bank before
    the maturity. After deducting the commission, bank pays the balance to the holder. On maturity, bank gets its payment from the party which had accepted the bill.
    3. Agency Functions: 
    Commercial banks also perform certain agency functions for their customers. For these services, banks charge some commission from their clients.
     Some of the agency functions are:
    i) Transfer of Funds: 
    Banks provide the facility of economical and easy remittance of funds from place-to-place with the help of instruments like demand drafts, mail transfers, etc.
    ii) Collection and Payment of Various Bill Payments: 
    Commercial banks collect cheques, bills, interest, dividends, subscriptions, rents and other periodical receipts on behalf of their customers and also make payments of taxes, insurance premium, etc. on standing instructions of their clients.
    iii) Purchase and Sale of Foreign Exchange:
    Some commercial banks are authorized by the central bank to deal in foreign exchange. They buy and sell foreign exchange on behalf of their customers and help in promoting international trade.
    iv) Purchase and Sale of Securities:
    Commercial banks buy and sell stocks and shares of private companies as well as government securities on behalf of their customers.
    v) Income Tax Consultancy:
    They also give advice to their customers on matters relating to income tax and even prepare their income
    tax returns.
    vi) Trustee and Executor: 
    Commercial banks preserve the wills of their customers as trustees and execute them after their death as executors.
    4. General Utility Functions: 
    Commercial banks render some general utility services like:
    i) Locker Facility: 
    Commercial banks provide facility of safety vaults or lockers to keep valuable articles of customers in safe custody.
    ii) Traveller's Cheques: 
    Commercial banks issue traveler's cheques to their customers to avoid risk of taking cash during their journey.
    iii) Letter of Credit: 
    Commercial banks issue letters of credit to their customers to certify their creditworthiness.
    iv) Underwriting Securities: 
    Commercial banks also undertake the task of underwriting securities. As public has full faith in the creditworthiness of banks, public do not hesitate in buying the securities underwritten by banks.
    v) Collection of Statistics: 
    Banks collect and publish statistics relating to trade, commerce and industry. Hence, they advice customers on financial matters. Commercial banks receive deposits from the public and use these deposits to give loans. However, loans offered are many times more than the deposits received by banks. This function of banks is known as 'Money Creation'.

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