YES, I agree with this
statement.
Reasons,
General Utility
Functions: - The bank performs general utility functions, such as:
a. Issue of Drafts, LCs, etc: -Banks issues
drafts for transferring money form one place to another. It also issues letter
of credit, especially in case of import trade. It also issues travellers
cheques.
b. Locker Facility: -The bank provides a
locker facility for the safe custody of valuable documents, gold ornaments, and
other valuables.
c. Underwriting of Shares: -The bank
underwriter’s shares and debentures through its merchant bank division.
d. Dealing in Foreign Exchange: -The
commercial banks are allowed by RBI to deal in foreign exchange.
e. Project Reports: -The bank may also
undertake to prepare project reports and feasibility studies on behalf of its
clients.
f. Social Welfare Programmes: -It
undertakes social welfare programmes, such as adult literacy programmes. Public
welfare campaigns, etc.