Answer in brief.

1) What are the points to be kept in mind by a Secretary while corresponding with Banks?
The points to be kept in mind by a Secretary while corresponding with banks:
(1) Prompt reply: In certain cases such as loss of a cheque, mistakes or wrong entries in the passbook, etc. communication to the bank must be prompt. Replies to letters from the bank must be sent promptly.
(2) Brevity/Conciseness: The letter/correspondence with the bank should be brief, compact, and to the point. The letters should not contain unnecessary details. I
(3) Courtesy: The letter drafted to the bank should be courteous and polite. Secretary should not use harsh or rude, offending words in the correspondence.
(4) Clarity: The wording and the construction of the letter must be clear and understandable to the reader. The Secretary should provide true, factual clear, and update the information of his organisation to the banker.
(5) Accuracy: The letter to a bank must be accurate in all respects. The facts, figures, statistical data, amounts, names of the parties, etc. mentioned in the letter must be properly verified before mentioning them in the letter.
(6) Secrecy: As far as possible confidential information should not be communicated in writing as it may harm the interests of the company.
(7) Legal procedure: Wherever applicable, the Secretary must endure that the statutory provisions and requirements are complied with white drafting letters to the bank. The Secretary must ensure that the enclosures referred to in the body of the letter tally with those actually enclosed.

2) Under what circumstances will a Secretary correspond with the Banks?
The circumstances under which a Secretary correspond with the bank:
(1) Letter for opening the current account in the name of the company. Separate accounts may be opened for receiving application money, allotment money, call money, distribution of dividend, etc.
(2) Letter requesting the bank to stop the payment of a cheque issued but reported lost. In the case of wrong payment against a cheque issued by the company, either the banker or the company may be put to loss. In such a case, therefore, the Secretary first instructs the bank by telephone to stop the Payment of such a cheque and then subsequently sends a letter confirming the instruction.
(3) Letter requesting the banker to grant an overdraft facility or cash credit or loan for meeting the financial needs of the company. It is a short term credit facility, which a bank gives to current account holders. Bank fixes the overdraft limit against securities given by the borrower.
(4) Letter requesting the banker to issue Letter of Credit. Letter of Credit is generally used for an international trade transaction. It is issued by the bank on behalf of his client promising to pay certain amount of money to the seller in case buyer fails to pay.

3) State the Agency functions of Banks.
(1) Collecting the amount of the cheques and bills deposited by its customers.
(2) Collecting dividend, interest, salary, pension, etc. on behalf of the customers.
(3) Making periodic payments such as annual subscriptions, rent, interest, taxes, Insurance premium, electricity bill, etc. as per standing instructions.
(4) Buying and selling securities such as shares, debentures, and other securities on behalf of customers. Bank also plays the role of Depositor Participant (DR).
(5) Remitting funds from one place to another by means of bank drafts, mail transfer, telegraphic transfer, etc.
(6) Carrying out or fulfilling standing instructions of depositors.
(7) Acting as an administrator, trustee, executor of W111, and attorney on behalf of its customers.
(8) Act as Banker to the issue. Lead manager, etc behalf of the Companies.

4) State the Utility functions of Banks.
Utility functions of the Banks :
(1) Providing safe deposit vaults to the customers for keeping their valuables like gold ornaments, securities, valuable documents, etc. in safe custody.
(2) Issuing Letter of Credit to the clients for making payment in international trade transactions.
(3) Dealing in foreign exchange and assisting in the Completion of formalities in foreign trade transactions.
(4) Providing the facility of withdrawing cash anytime through ATM (Automated Teller Machine). Issuing credit cards to their customers. Issuing debit cards to their customers for buying goods and services.
(5) Acting as a referee for the financial position and business standing of their customers Bank also draft financial position status report by considering frequency of banking transactions of its clients.
(6) Underwriting for shares and debentures issued by companies providing consultancy services in the matter of issuing of shares, taxation, etc, to the companies.
(7) Issuing travelers’ cheques to the tourists.
(8) Performing functions like RTGS (Real Time Gross Settlement), a system generally employed for large value interbank funds transfer, NEFT (National Electronic Funds Transfer), NACH (National Automated Clearing House), and ECS (Electronic Clearing Service).

5) Explain the different types of Deposits.
The bank accept two types of deposits via
a) Demand deposits:
(1) The deposits which are repayable on demand is called ‘demand deposits’. The demand deposits include saving deposits and current deposits. A saving deposits account aims at promoting the habit of saving among the fixed income earners. Interest at certain rates is paid on the minimum balance in this account. There are restrictions on the number of withdrawals. Passbook is issued to the depositor. Estatement issued to depositor only on demand.
(2) A current deposit account is meant for businessmen and institutions. There are no restrictions on the number and amount of withdrawals from this account. Interest is not payable on the balance standing in this account. Overdraft facility is granted only to current account holders after following the prescribed procedure of the bank.
b) Time deposit:
(1) any deposit which is not repayable on demand is called a time deposit. Time deposits are repayable after a specified period of time. Time deposits may be classified as fixed deposit and recurring deposits. Under Fixed deposit account certain amount is deposited for fixed period (minimum 45 days or more). Usually higher rate of interest is paid depending on the period. Interest is paid either at regular time intervals or on the maturity of deposits. Fixed Deposit Receipt (FDR) 1s issued to the depositor. Loan is given to depositor on the security of FDR.
(2) Under the Recurring deposit account, the depositor is required to deposit with the bank a fixed sum of money every month for 12, 24, or 60 months, To encourage saving habit among the pe0ple bank allows depositors to open this account. On maturity, depositor gets the total amount deposited plus interest accrued on it. Passbook is issued to the depositor. E-statement is issued to the depositor only on demand.