Modern banks not only deal in money and credit creation, other useful functions management of foreign trade, finance etc. The meaning of modern banks is used in narrow sense of the term as commercial banks.SBI as a commercial bank renders the following functions under Section 33 of the Act:

A) Primary Functions:

(i) Accepting deposits

(ii) Advancing loans

(iii) Investments of funds

(iv) Credit creation

B) Secondary Functions:

(i) Agency functions

(ii) General utility functions

General Utility Services: A modern bank now a days serves its customers in many other ways:

(a) Locker facility: Banks provides locker facility to their customers. The customers can keep their valuables and important documents in these lockers for safe custody.

(b) Traveler’s cheques: Bank issue travelers cheques to help their customers to travel without the fear of theft or loss of money.

(c) Gift cheque: Some banks issue cheques of various denominators to be used on auspicious occasions. These are known as “gift cheques” as they are gifted to others.

(d) Letter of Credit: Letter of credit is issued by the banks to their customers certifying their credit worthiness. Letter of credit is very useful in foreign trade.

(e) Foreign Exchange Business: Banks also deal in the business of foreign currencies. Again, they may finance foreign trade by discounting foreign bills of exchange.

(f) Collection of Statistics: Banks collects statistics giving important information relating to industry, trade and commerce, money and banking. They also publish journals and bulletins containing research articles on economic and financial matters.