Commercial Applications
Answer
Two general utility functions of commercial banks are:
Issuing Credit Instruments — Banks issue letters of credit, drafts and travellers' cheques to their customers. This enables people to transfer funds from one place to another without carrying currency notes with them.
Safe Custody of Valuables — Banks accept jewellery, important documents and other valuables for safekeeping. They provide safe deposit vaults (lockers) to customers for storing these valuables securely.