Multiple choice

Which of the following cannot be termed as non-traditional' functions of a commercial bank in India?

  1. ATM facility

  2. Issuing credit cards

  3. Venture capital financing

  4. Creating deposits
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Commercial banks have traditional functions (accepting deposits, lending, creating deposits) and non-traditional modern functions. Creating deposits through lending is a FUNDAMENTAL traditional function of banking - it's how banks create money. ATM facilities, credit cards, and venture capital financing are modern, non-traditional services that banks have diversified into.

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