Banks provide various services beyond their core lending and deposit activities. Offering safe deposit lockers or custodial services for valuables is classified as a general utility function, as it provides convenience and security to customers, enhancing the overall value proposition of the banking institution.

A deposit is money placed into a bank account by a customer, representing a liability for the bank. In contrast, loans, overdrafts, and cash credits are credit facilities where the bank provides funds to the customer.

A bank is a financial institution licensed to receive deposits and make loans. Banks also provide various financial services, such as currency exchange, wealth management, and safe deposit boxes. They act as intermediaries in the financial system, channeling funds from savers to borrowers, which is essential for the functioning of a modern economy.

A bank draft is a payment instrument issued by a bank on behalf of a customer, guaranteeing payment to a third party. It is widely used for secure, long-distance fund transfers because it is drawn against the bank's own funds rather than a personal account.

Banks perform various agency functions for their customers, acting as their agents. These include collecting cheques, dividends, and interest, as well as making periodic payments like insurance premiums or rent on behalf of the account holder. These services are distinct from primary banking functions like accepting deposits and granting loans.

The Banking Regulation Act of 1949 provides the legal framework for banking in India. Section 5(b) of this Act specifically defines 'banking' as the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise.

Banks and payment processors typically charge a merchant discount rate (MDR) for processing credit card transactions. This rate varies based on the type of card, the industry, and the volume of transactions. While the range can fluctuate significantly based on specific agreements, 1% to 4% is a commonly cited industry standard for general retail credit card processing fees. This covers the costs of authorization, settlement, and fraud protection.

A post-dated cheque is a financial instrument that is dated for a time in the future. It cannot be presented for payment at a bank until the date specified on the cheque arrives.

General utility functions are services provided by banks to the public that go beyond basic lending and deposit-taking. These include issuing drafts, providing locker facilities, and dealing in foreign exchange, which enhance the convenience and utility for bank customers.

Agency functions are those services performed by a bank for its customers, such as acting as an agent to collect payments, pay bills, or manage investments, for which the bank typically charges a fee or commission.