How do banks play an important role in the economy of India? Explain.
THE banks play an important role in the economy of the country:
- Banks help people to save their money in safe custody. To save their money, people deposit their money with banks.
- Banks give interest on the money deposited by the people. Thus, they add to the income of the family.
- Many families survive on the bank interest.
- Banks provide loans to people for a variety of purposes.
- Banks charge low interest rate.
- Credit provided by banks is crucial for the country’s growth and economy.
- Banks boost the industrial sector by providing cheap loans.
- They are the backbone of the country’s trade.
- Banks employ a large number of people and as such they solve the employment to some extent.