Commercial banks have two key functions: primary functions which include accepting deposits, granting loans and advances, cash credits, overdrafts, and discounting bills. They also have secondary functions like agency services and general utility services such as letters of credit, standing orders, demand drafts, traveler's checks, and foreign exchange. Commercial banks engage in processing payments, issuing bank drafts and checks, accepting term deposits, lending money, providing letters of credit and guarantees, safekeeping items, selling financial products, cash management, merchant banking, and underwriting bonds.