Challenger App

No.1 PSC Learning App

1M+ Downloads
A commercial bank’s agency function of acting as a correspondent for foreign banks mainly involves:

AGranting loans to foreign bank customers

BCollecting and remitting foreign currency on behalf of foreign banks

CManaging foreign bank’s capital adequacy requirements

DHandling mergers and acquisitions for foreign banks

Answer:

B. Collecting and remitting foreign currency on behalf of foreign banks

Read Explanation:

.


Related Questions:

What is the minimum threshold for paid-up capital and reserves a bank must possess to qualify as a Scheduled Bank?
Which type of crossing bears the name of a banker ?

Which of the following pairs is correctly matched with respect to capital or paid up capital requirements? Institution Minimum Paid-Up / Initial Capital Requirement

  1. Local Area Bank ₹5 crore

  2. Small Finance Bank ₹300 crore (revised)

  3. Payment Bank ₹100-200 crore

  4. All of the above

Choose the correct option:

Restructuring of loan will be a necessity in the point of view.
What distinguishes Scheduled Banks from Non-Scheduled Banks in terms of central banking privileges?