Which one of the following is considered as an agency function of commercial banks in India?

  1. A. Acceptance of deposits
  2. B. Investment of surplus funds
  3. C. Acceptance of income tax payments
  4. D. Providing overdraft facilities

Correct Answer: C. Acceptance of income tax payments

Explanation

Agency functions are services banks provide on behalf of their customers or the government. Accepting income tax payments or collecting utility bills falls under this category, whereas accepting deposits is a primary function.

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