Question

How do banks play an important role in the economy of India? Explain​

Answer 1

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

• 1) Banks keep the money of the people in its safe custody.
• 2) Banks give interest on the deposited money to the people.
• 3) Banks mediate between those who have surplus money and those who are in need of money.
• 4) Banks provide the loan to a large number of people at low-interest rate.
• 5) Banks promote agricultural and industrial sector by providing loans.
• 6) They also provide funds to different organizations.