Question

A system of banking that involves private firms or individuals who act as a bank by providing financial services

• A. Retail Banking
• B. Investment Banking
• C. Indigenous Banking
• D. Corporate Banking

Answer 1

Answer:

C. Indigenous Banking

Indigenous Banking:

• It is certainly one of the oldest banking system which have been functioning for centuries.
• It is a system of banking that involves private firms or individuals who act as a bank by providing financial services.
• This system is made up of Indigenous bankers who do not fall under the purview of the Govt.
• They are professional dealers in Hundis.
• Hundis were important instruments of money exchange for the businesses in times before new instruments were introduced
• The bill of exchange issued by indigenous bankers were known as Hundis.
• Discounting Hundis is one of the most profitable businesses for the Indigenous Bankers.