BANKING AFFAIRS

Detailed explanation-1: -Unit banking refers to a single, usually very small bank that provides financial services to its local community. Typically, a unit bank is independent and operates without any connecting banks or branches in the area.

Detailed explanation-2: -It is better known as localised banking as banks are more close to the local conditions and have specialised information about the local problems, drawbacks and needs. The funds are thus channelized to cater to local issues only and don’t have to be transferred to other areas.

Detailed explanation-3: -The 4 different types of banks are Central Bank, Commercial Bank, Cooperative Banks, Regional Rural Banks.

Detailed explanation-4: -What is the example of unit banking? The Reserve Bank of India is a prime example of India’s unit banking system. In contrast to banking services, which transfer funding to other areas, unit banking only uses its assets to improve the region in question.

Detailed explanation-5: -Unit banking, in general, means a bank that does not have any branches. It is typically small in size and provides services to only a specific area in which it operates. No main branch controls its functioning. On the other hand, branch banking is fully controlled by the main branch.