How do banks play an important role in the economy of India
Money and Credit (10)How do banks play an important role in the economy of India ? Explain.
Answer
Banks play an important role in developing the economy of India
- Banks keep money of the people in its safe custody.
- Banks give interest on the deposited money to the people.
- Banks mediate between those who have surplus money and those who are in need of money.
- Banks provide loan to large number of people at low interest rate.
- Banks promote agricultural and industrial sector by providing loans.
- They also provide funds to different organizations.
Exam Year:
2015
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