The banks collect these instruments drawn on banks in other cities or countries and proceeds according to the accounts of the customer's concerns. A bank as a matter of fact is just like a heart in the economic structure and the Capital provided by it is like blood in it. As long as blood is in circulation theorgans will remain sound and healthy. If the blood is not supplied to any organ then that part would become useless, so if the finance is not provided to Agricultural sector or industrial sector, it will be destroyed. cheques, drafts bills of exchange and letters of credit are very important instruments of the banks. loan facility provided by banks works as an incentive to the producer to increase the production. Many difficulties in the international payments have been over come and volume of transactions has been increased.
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