Students can Download Commerce Chapter 11 Types of Banks Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Commerce Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.
Samacheer Kalvi 11th Commerce Solutions Chapter 11 Types of Banks
Samacheer Kalvi 11th Commerce Types of Banks Textbook Exercise Questions and Answers
I. Choose the Correct Answer
Question 1.
Which bank is not a Industrial Bank?
(a) ICICI
(b) HSBC
(c) SIDBI
(d) IDBI
Answer:
(b) HSBC
Question 2.
The Local Area Banks are promoting
(a) Rural savings
(b) Business savings
(c) Industrial development
(d) Agricultural development
Answer:
(a) Rural savings
Question 3.
Foreign banks are begun their operation since
(a) 1978
(b) 1979
(c) 1980
(d) 1981
Answer:
(c) 1980
II. Very Short Answer Questions
Question 1.
Give the meaning of Commercial Banks.
Answer:
Banks which accept deposits from the public and grant loans to traders, individuals, agriculturists, Industries, Transport, etc. in order to earn a profit. They also provide other banking services.
E.g: State Bank of India, Karur Vysa Bank.
Question 2.
What do you mean by Industrial Banks?
Answer:
Huge finance required for investment, expansion, and modernisation of big industries and others is granted by a separate type of banks called development Banks. They are also called industrial banks.
Question 3.
Briefly explain about Correspondent Banks?
Answer:
It is a kind of financial institution which provides services on behalf of other, equal or unequal financial institutions. It facilitates wire transfers, conduct business transactions, accept deposits and gather documents on behalf of another financial institution.
Question 4.
What are Foreign Banks?
Answer:
Banks which have registered office in a foreign country and branches in India are called foreign banks.
III. Short Answer Questions
Question 1.
Write a short note on Local Area Banks. Give two examples.
Answer:
The local Area Bank (LAB) scheme was introduced in August 1996. It is a small private sector bank established in rural and semi-urban areas. Each bank serves two or three adjoining districts only. The main objective of these banks is to mobilise rural savings (accepts deposits) and invest them in the same area.
Among the 227 applications 10 banks were considered for approval and six were given license under section 22 of the Banking Regulation Act, 1949, only three Local Area Banks are functioning now.
E.g: Coastal Local Area Bank, Vijayawada, Andhra Pradesh, Subhadra Local Area Bank Limited, Kolhapur, Maharashtra.
Question 2.
Answer:
What are the objectives involved in Regional Rural Banks?
Answer:
Their objective is to develop the rural economy and play a supplementary role in cooperative societies. They mobilise deposits from the rural public and provide finance to rural artisans, small entrepreneurs, and farmers and try to avoid their dependency on money lenders. As of 31.3.2016, there were 56 RRBs in India with 14,494 branches. They are regulated and supervised by NABARD.
Question 3.
Mention the purposes of Agricultural and Co-operative banks.
Answer:
All the agriculture and cooperative banks in India are owned by their customers and members who are farmers, small traders, and others. These banks are either urban-based or rural-based. Their main objective is to provide service to its members for rural and agricultural development and not profit earning.
Compared to the commercial banks they offer less variety of services as the bye-laws do not permit all commercial bank activities. National Cooperative Development Corporation (NCDC) concentrates on providing loans and grants to State Governments for financing cooperative societies.
IV. Long Answer Questions
Question 1.
Explain the various types of banks based on the organization with examples.
Answer:
1. Commercial banks:
Banks which accept deposits from the public and grant loans to traders, individuals, agriculture, industries, transport, etc. in order to earn a profit. Their lending is in comparatively small amounts and mostly for the short and medium periods. e.g.. State Bank of India
2. Development Banks:
Huge finance required for investment, expansion, and modernisation of big industries and others is granted by a separate type of banks called development Banks. They are also called industrial banks, e.g., IFCI, SIDBl.
3. Cooperative Banks:
All cooperative banks in India are owned by their customers or members who are farmers, small traders, and others. Cooperative banks in India are either urban-based or rural-based. example NAFED, Tamil Nadu State Apex Cooperative Bank – Head Office, Chennai.
4. Foreign Banks:
Banks which have registered office in a foreign country and branches in India are called foreign banks, e.g., Bank of America – USA.
5. Regional Rural Banks (RRBs):
The RRBs were formed under the Regional Rural Bank Act 1976, jointly by the Central Government, State Government, and a sponsor bank, for example, Pandian Grama Bank.
Question 2.
Explain the types of banks based on ownership patterns.
Answer:
Any bank in which not less than 51 percent of shares are owned by the Government is called Government banks or public sector commercial banks (Total 21). All nationalized banks (19 banks, in 2017), SBIand IDBI Ltd. are public sector commercial banks. All of them are joint-stock company type banks. E.g.: SIDBI, EXIM bank, etc. All banking companies owned by private peóple are called private sector commercial banks.
In 1969, there were 14 private banks which were concentrated in cities and towns. Their objective is to earn more profits. The government paid the share capital of those banks to the private owners and took over as Government banks. This is called the nationalization of banks. There are 19 nationalized banks now:
Examples:
- Nationalised Banks: Indian bank, Indian Overseas Bank, etc.
- Public Sector Banks: State Bank of India, IDBI Bank Ltd., etc.
- Private Sector Banks: Lakshmi Vila Bank, Karur Vysya Bank, etc.
Samacheer Kalvi 11th Commerce Cooperative Organisation Additional Questions and Answers
I. Choose the Correct Answer:
Question 1.
Patru, Varavu, Selavu, Alabama, Nashtam which all, collectively known as ‘Iynthogai’ is otherwise called ……………..
(a) Trial Balance
(b) Ledger
(c) Journal
(d) Transaction
Answer:
(a) Trial Balance
Question 2.
Bank of Hindustan was the first bank in India established in ……………..
(a) 1771
(b) 1770
(c) 1932
(d) 1930
Answer:
(b) 1770
Question 3.
The General Bank of India was established in ……………..
(a) 1786
(b) 1796
(c) 1766
(d) 1787
Answer:
(a) 1786
Question 4.
Bank of Calcutta was the first joint-stock bank established in
(a) 1806
(b) 1807
(c) 1805
(d) 1808
Answer:
(a) 1806
Question 5.
World bank otherwise called ……………..
(a) IBRD
(b) IMF
(c) RBI
(d) SBI
Answer:
(a) IBRD
Question 6.
International Monetary Fund (IMF) in which India became the member in ……………..
(a) 1947
(b) 1946
(c) 1945
(d) 1950
Answer:
(c) 1945
Question 7.
The state bank of India came into being in ……………..
(a) 1995
(b) 1945
(c) 1955
(d) 1965
Answer:
(c) 1955
II. Very Short Answer Questions:
Question 1.
What do you mean by Cooperative banks?
Answer:
All cooperative banks in India are owned by their customers or members who are farmers, small traders, and others. Cooperative banks in India are either urban-based or rural-based.
Question 2.
What is a Scheduled bank?
Answer:
All banks which satisfied the norms and included in the Second Schedule to the RBI Act, 1934 are called scheduled banks.
Case Study
Question 1.
You are the Agricultural bank manager; a farmer approaches you for a loan from your bank for purchasing a tractor and other farm equipment. How would you sanction the loan?
Answer:
National Bank for Agriculture and Rural Development (NABARD) is such a bank National Cooperative Development Corporation (NCDC). These banks are giving bank loans for agriculture. If I were a bank manager, I ask the farmer the details of security. Land documents and other securities must be collected from the agriculturist. Then I check the productivity of his land.
How much earnings from that land in every year. If the regular incomes and yielding getting from that land, we can allow loan sanction for that farmer. Before that the terms and conditions of the loan sanction letter to be given. He has to read and put the signature in that credit letter.
Question 2.
Due to natural calamities, the farmer could not repay the loan. He has no other way to repay the loan. How to collect a loan from the farmer?
Answer:
We can ask the Government if any policy has been changed and sanctioned any compensations. Otherwise, we can ask him whether insurance took the harvesting land. If he did the insurance policy, the Insurance company can give the compensations and we can collect from them, or we can give notice and give the auction on that land and recover money from that auction by the land document. The land was hypothecated by the bank and the loan was given. So we can have a chance to recover that loan.