BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ banks will have more service motive
A
Agriculture development bank
B
Central banks
C
Co-operative banks
D
Commercial banks
Explanation: 

Detailed explanation-1: -The Co-operative Banks in India are governed as per the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1955. These Banks have been opened with the motto of ‘no-profit-no-loss’ and thus, do not seek for profitable ventures and customers only.

Detailed explanation-2: -Cooperative banking is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world.

Detailed explanation-3: -Commercial bank is a bank that is formed for the commercial purpose and hence its primary aim to earn profit from the banking business. On the other hand, cooperative banks are owned and operated by the members for a common purpose i.e. to provide financial service to agriculturists and small businessmen.

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