What term is used to describe a bank that primarily accepts deposits and provides loans?

Commercial bank

Fill in the blank: The Reserve Bank of India serves as the ___ authority overseeing the banking system.

Central monetary

True or False: Non-Performing Assets (NPA) are assets that generate regular income for banks.

False; NPAs do not generate income.

What was the primary purpose of establishing Regional Rural Banks (RRBs) in India?

To provide sufficient institutional credit for agriculture and rural development.

Fill in the blank: The majority of the share capital in public sector banks is held by the ___ government.

Central

What significant role do commercial banks play in the economic development of developing countries?

They mobilize savings, finance industries, and support agriculture, trade, and employment generation.

Which act governs the establishment and functioning of cooperative banks in India?

The Banking Laws (Cooperative Societies) Act, 1965

True or False: The Khusrau Committee recommended that Regional Rural Banks should continue to operate independently without any mergers.

False; it recommended merging RRBs with sponsor banks.

What is the main difference between scheduled commercial banks and cooperative banks?

Scheduled commercial banks operate for profit, while cooperative banks operate on a no-profit no-loss basis.

Fill in the blank: The primary income source for banks is ___ income from loans and advances.

Interest

What challenges do cooperative banks face in India regarding their membership?

Dormant membership and lack of active participation lead to inefficiencies.