The correct answer is A. “auditing” would not typically be considered an operations function in a commercial bank. Commercial banks perform a wide range of functions, including customer service, financial transactions, and regulatory compliance.

While some of these functions are indeed associated with bank operations, the specific role of auditing is separate and distinct. Let’s delve into the reasons why auditing is not considered an operations function and why the other options are relevant in the context of a commercial bank.

Why “Auditing” is the Correct Answer:

1. Independence and Oversight:

Auditing in a commercial bank involves assessing the bank’s financial records, transactions, and internal controls for accuracy, legality, and compliance with relevant regulations.

Auditors are typically independent professionals or teams who evaluate the bank’s operations from an objective standpoint. Their role is to ensure that the bank’s financial activities are conducted in accordance with legal and regulatory requirements and that there is no financial mismanagement.

2. Role in Risk Management:

Auditing primarily serves as a risk management and regulatory compliance function. It is responsible for detecting and preventing financial irregularities, fraud, or other activities that might pose risks to the bank’s financial stability and reputation. The audit function provides assurance to regulators, stakeholders, and customers that the bank is operating in a transparent and accountable manner.

3. Separation of Duties:

To maintain the integrity of the auditing process, auditors are expected to be separate from the daily operations of the bank. This separation ensures an unbiased evaluation of the bank’s activities. It is essential to prevent conflicts of interest and ensure the accuracy of the audit findings.

Why the Other Options Are Not Correct:

B. Teller Scheduling:

Teller scheduling is indeed an operations function in a commercial bank. It involves the organization and management of teller staff to ensure that customer service is efficient and responsive to customer demand. Proper scheduling ensures that tellers are available to serve customers during business hours, balancing workloads and optimizing staff resources.

C. Maintenance:

Maintenance is a crucial operations function in a commercial bank. It includes the upkeep of the physical facilities, such as the bank building, ATMs, security systems, and other infrastructure. Maintenance ensures that all equipment is in working order and that the bank premises are safe and well-maintained for both employees and customers.

D. Collection:

Collection is another integral operations function for a commercial bank. It involves the process of collecting payments, dues, and loan repayments from customers and borrowers. This function ensures that the bank can recover funds as agreed upon in loan agreements and that it can manage outstanding debts effectively.

E. Check Clearing:

Check clearing is a vital operations function in a commercial bank, especially for handling customer transactions. It involves the process of transferring funds from the payer’s account to the payee’s account when checks are presented for payment. Check clearing ensures the smooth and efficient processing of customer transactions and is central to the banking operations.

In summary, auditing is not typically considered an operations function in a commercial bank because it serves an independent role focused on risk management, compliance, and ensuring the integrity of financial activities.

On the other hand, the other options, including teller scheduling, maintenance, collection, and check clearing, are all essential operations functions within a commercial bank as they directly relate to customer service, facility management, financial transactions, and debt recovery.