How do banks play an important role in the economy of India ? Explain
Banks play a crucial role in the economy of India.
They help in two ways:
1. By providing bank deposits. In these banks deposits people that deposit there money get two benefits. First, the money is safe with the bank and secondly, the banks provide interest over the deposits.
By providing interest over the bank deposits, banks increase the income of the people and standard of living of people, eventually the economy is being given a boost.
2 By providing cheap loan. Banks provide cheap loan to various peoples.
By providing cheap loans the bank helps in the growth of different industries and helps in increasing the productivity of the agriculture. And hence it again helps in the economy of the country.
They help in two ways:
1. By providing bank deposits. In these banks deposits people that deposit there money get two benefits. First, the money is safe with the bank and secondly, the banks provide interest over the deposits.
By providing interest over the bank deposits, banks increase the income of the people and standard of living of people, eventually the economy is being given a boost.
2 By providing cheap loan. Banks provide cheap loan to various peoples.
By providing cheap loans the bank helps in the growth of different industries and helps in increasing the productivity of the agriculture. And hence it again helps in the economy of the country.