Role of banking in indian economy

Question

Accepted Answer

Banking plays a crucial role in the Indian economy by facilitating financial transactions, providing credit, and promoting economic growth.

Banks mobilize savings from individuals and businesses, which are then used for investments in various sectors of the economy.
They provide a range of financial services such as loans, deposits, and payment services, which are essential for businesses to operate and grow.
Banks also play a key role in the transmission of monetary policy by influencing interest rates and credit availability in the economy.
The banking sector in India has undergone significant reforms in recent years, leading to increased competition, efficiency, and financial inclusion.
Examples of major banks in India include State Bank of India, HDFC Bank, ICICI Bank, and Punjab National Bank.

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