Question

How do banks play an important role in economic India? Explain.​

Answer 1

Banks play an important role in developing the  economy of India :

(i) They keep money of the people in its safe  custody.

(ii) They give interest on the deposited money to the  people.

(iii) They mediate between those who have surplus  money and those who are in need of money.

(iv) They provide loan to large number of people at  low interest rate.

(v) They promote agricultural and industrial sector  by providing loans.

(vi) They also provide funds to different organizations