Which of the following is not the fund based business of commercial banks ?
Depository Participant Operations ('P. Operations' / D.P. Operations) is a fee-based (non-fund based) financial service provided by commercial banks that generates…
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Which of the following is not the fund based business of commercial banks ?
Answer and explanation
Correct answer A
Depository Participant Operations ('P. Operations' / D.P. Operations) is a fee-based (non-fund based) financial service provided by commercial banks that generates commission income without deploying bank funds. By contrast, accepting deposits and deploying them into loans, advances, and discounting of bills constitute the core fund-based business of commercial banks.
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UGC NET Commerce