With reference to the secondary functions of a commercial bank, explain general utility function.

General Utility Functions form one of the two parts of the secondary functions of a commercial bank.

Main General Utility Functions:

1. Issuing Credit Instruments — Banks issue letters of credit, drafts and travellers' cheques to their customers. These instruments allow people to transfer funds from one place to another without carrying cash.

2. Underwriting Capital Issues — Banks underwrite shares and debentures issued by companies. By underwriting, the bank guarantees to subscribe to any unsold portion of the issue, helping companies raise capital from the public with confidence.

3. Safe Custody of Valuables — Banks accept jewellery, important documents and other valuables for safekeeping. They provide safe deposit vaults (lockers) in which customers can store their valuables.

4. Advice and Information — Banks offer advice on financial matters and provide information about creditworthiness of customers, helping them obtain credit facilities from suppliers. They also collect and provide information about trade and industry in the country and abroad.