Page 94 - VIRANSH COACHING CLASSES

entire banking system in the country, leading co-operative banks and state co-operative
to creation of credit. In short, commercial banks.
banks create deposits out of the loans given Fig. 9.3 explains the structure of co-
thereby leading to crediton. operative banks in India :

Three Tier Co-operative Credit Structure

State Co-operative Bank
State (Apex Bank)
Level

District District Central
Level Co-operative Bank

Primary Primary Co-operative
Level credit Societie

Fig. 9.3

Try this :
Collect information of Co-operative
banks operating in your region at different
levels.

d) Development Financial Institutions
(DFIs) : Development financial institutions
Fig. 9.2
are agencies that provide medium and
Try this : long-term financial assistance. They help
Pair the logos given with their respective in the development of industry, agriculture
banks as given in the bracket below: and other key sectors. Industrial Finance
(State Bank of India, HSBC Bank, Union Corporation of India (IFCI) was the first
Bank of India, Axis Bank, Standard development financial institution to be
Chartered Bank, HDFC Bank) established in 1948.

Let's recall :
You have already studied in class

c) Co-operative Banks : Co-operative banks XI about NABARD which is the apex
came into existence with the enactment of institution in the rural credit structure. It
the Co-operative Credit Societies Act of provides credit for promotion of agriculture,
1904. Co-operative banks supplement the small-scale industries, cottage and village
efforts of commercial banks by meeting industries, handicrafts etc.
the credit needs of the local population. Development financial institutions
It fulfills the banking needs of small and have diversified their operations with the
medium income groups. The co-operative advent of liberalization and globalization.
credit sector comprises of co-operative
credit institutions such as primary co- They have set up subsidiaries to offer a
operative credit societies, district central wide range of new products and services
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