Question

A broad based and comprehensive banking activity in which a bank is engaged in diversified banking activities, such banking is known as

• A. Retail Banking
• B. Investment Banking
• C. Universal Banking
• D. Private Banking

Answer 1

Answer:

C. Universal Banking

Universal Banking:

• Universal banking refers to a broad based and comprehensive banking activity in which a bank is engaged in diversified banking activities, such banking is known as Universal Banking. (like retail banking, corporate banking, investment banking etc.)
• RH Khan committee recommended concept of universal banking in India
• All type of financial service and fund-based activities are undertaken by a bank under Universal banking.
• Activities : Accepting deposit & granting loans, Investing in securities, Issuing credit cards, Project financing, working capitals, underwriting of shares, foreign exchange operations, insurance etc.
• Eg: SBI, ICICI
• First Universal Bank in the Country: ICICI