Test: The Tertiary Sector In The Indian Economy - 2 - UPSC MCQ

Land development bank started financing long term loan for more significant rural development activities like rural and cottage industries, rural artisans etc. The main purpose of RRB’s is to mobilize financial resources from rural / semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural labourers and rural artisans. NABARD does not give “direct” credit assistance. It provides credit Via intermediaries such as Microfinance companies, Cooperative society, RRB.

A tight monetary policy is a course of action undertaken by Central bank to constrict spending in an economy, or to curb inflation when it is rising too fast. The increased bank rate increases the cost of borrowing and effectively reduces its attractiveness.

The Reserve Bank of India is the main monetary authority of the country and beside that, in its capacity as the central bank, acts as the bank of the national and state governments.

The basic aim of Lead Bank scheme is that the bank should adopt particular districts for intensive development by offering loans and banking services.

International Development Association (IDA) , is that part of the World Bank that helps the world’s poorest countries. It complements the World Bank’s other lending arm— the International Bank for Reconstruction and Development (IBRD) which serves middle-income countries with capital investment and advisory services. IDA was created in 1960.

Miscellaneous functions of commercial banks in India include: Transfer and collection of funds, purchase and sale of shares on behalf of customers, acting as executors and transfers of wills, purchase and sale of foreign exchange etc.

“Financial inclusion” is the delivery of financial services at affordable costs to vast sections of disadvantaged and low income groups. Banking services are in the nature of public good. It is essential that availability of banking and payment services be available to the entire population without discrimination.

The Banking ombudsman Scheme is an expeditious and inexpensive forum for bank customers for resolution of complaints relating to certain services rendered by banks.
Any person aggrieved by the decision of the Banking Ombudsman can approach the Appellate Authority. The Appellate Authority is vested with a Deputy Governor of the RBI.

It is fixed by Reserve Bank of India. In 2011, RBI permitted the commercial banks to fix interest rate on saving account independently.

Bear is a speculator who sells shares in anticipation of fall operator prices to buy them back and thus make a profit.