Question

Briefly discuss the concept of Indigenous Banking System.​

Answer 1

Answer:

Indigenous bankers are private firms or individuals who operate as banks and as such both receive deposits and give loans. Like banks, they are also financial intermediaries. They should be distinguished h professional moneylenders whose primary business is not banking but money lending .

Explanation:

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Answer 2

Answer:

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Explanation:

• Indigenous bankers are private firms or individuals who operate as banks and as such both receive deposits and give loans.
• Like banks, they are also financial intermediaries. They should be distinguished h professional moneylenders whose primary business is not banking but money lending.
• A pure moneylender lends his own funds an indigenous banker raises a part of his loanable funds from the public in deposits or other forms.
• A moneylender conducts his transactions in cash, while a large pan of die transactions of an indigenous banker are based on dealings in short term credit instru­ments like hundis and commercial bills.
• The system of indigenous banking in India dates back to ancient times.
• Until the middle of the nineteenth century the indigenous financial agencies constituted the bulk of the Indian financial system.
• They provided credit not only to traders and producers but also to the governments of the day.
• Hope this helps...
• Thanks,
• TJ