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Consider the following statements and identify the right ones.
i. Post nationalization, banks were supposed to open more branches in rural and semi-urban areas
ii. Banks had to provide credit facilities to areas that come under priority sector.
i. Post nationalization, banks were supposed to open more branches in rural and semi-urban areas
ii. Banks had to provide credit facilities to areas that come under priority sector.
- a)i only
- b)ii only
- c)both
- d)none
Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements and identify the right ones.i. Post ...
Post nationalization, banks were supposed to open more branches in rural and semi-urban areas in order to collect savings from these areas.
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Consider the following statements and identify the right ones.i. Post ...
Statement i: Post nationalization, banks were supposed to open more branches in rural and semi-urban areas.
Statement ii: Banks had to provide credit facilities to areas that come under priority sector.
Both statements i and ii are correct.
Explanation:
Statement i: Post nationalization, banks were indeed required to open more branches in rural and semi-urban areas. This was a part of the government's objective to promote financial inclusion and ensure that banking services reach the unbanked and underbanked population in these areas. The nationalized banks were expected to establish a wide network of branches to cater to the banking needs of the rural and semi-urban population.
Statement ii: Banks were also mandated to provide credit facilities to areas that come under the priority sector. Priority sectors include agriculture, micro, small, and medium enterprises (MSMEs), export credit, education, housing, and other sectors identified by the government from time to time. The purpose of prioritizing these sectors was to ensure that adequate credit is made available to them, as they play a crucial role in the overall development of the economy.
These measures were introduced to address the issue of regional imbalances and promote inclusive growth. By opening branches in rural and semi-urban areas, banks were able to extend their services to previously underserved regions. This helped in promoting financial literacy, mobilizing savings, and providing access to credit for various productive activities.
Additionally, providing credit facilities to priority sectors ensured that the necessary financial support was available for the development of these sectors. This, in turn, contributed to employment generation, income generation, and overall economic growth.
Overall, both statements i and ii highlight important aspects of the post-nationalization policies for banks. These measures played a significant role in promoting financial inclusion, addressing regional disparities, and supporting the growth of priority sectors in the country.
Statement ii: Banks had to provide credit facilities to areas that come under priority sector.
Both statements i and ii are correct.
Explanation:
Statement i: Post nationalization, banks were indeed required to open more branches in rural and semi-urban areas. This was a part of the government's objective to promote financial inclusion and ensure that banking services reach the unbanked and underbanked population in these areas. The nationalized banks were expected to establish a wide network of branches to cater to the banking needs of the rural and semi-urban population.
Statement ii: Banks were also mandated to provide credit facilities to areas that come under the priority sector. Priority sectors include agriculture, micro, small, and medium enterprises (MSMEs), export credit, education, housing, and other sectors identified by the government from time to time. The purpose of prioritizing these sectors was to ensure that adequate credit is made available to them, as they play a crucial role in the overall development of the economy.
These measures were introduced to address the issue of regional imbalances and promote inclusive growth. By opening branches in rural and semi-urban areas, banks were able to extend their services to previously underserved regions. This helped in promoting financial literacy, mobilizing savings, and providing access to credit for various productive activities.
Additionally, providing credit facilities to priority sectors ensured that the necessary financial support was available for the development of these sectors. This, in turn, contributed to employment generation, income generation, and overall economic growth.
Overall, both statements i and ii highlight important aspects of the post-nationalization policies for banks. These measures played a significant role in promoting financial inclusion, addressing regional disparities, and supporting the growth of priority sectors in the country.
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Consider the following statements and identify the right ones.i. Post nationalization, banks were supposed to open more branches in rural and semi-urban areasii. Banks had to provide credit facilities to areas that come under priority sector.a)i onlyb)ii onlyc)bothd)noneCorrect answer is option 'C'. Can you explain this answer?
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