what are merits or demeris of Indigenous Banking System ?
Answers
Merits and demerits of indigenous bankers in India:
Merits:
(a) They provide prompt and flexible credit.
(b) They gives loans to the small productive commercial bank.
(c) They have cordial relationship with the customers.
(d) They keep close contact with their customers and remain fully acquiented with their problems and financial requirement
(e) They are not merely bankers to their customers but our also their friends and advisers.
Demerits:
(a) Mixing banking and non-banking business.
(b) Unorganised banking system.
(c) Insufficient capital.
(d) Meagre deposit business.
(e) Higher interest rate.
(f) Defective lending.
(g) Unproductive loans
(h) Secrecy of Accounts
(i) Exploitation of customers
(j) No control of RBI.
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