Types of banking systems & their relative merits and demerits.
Types of banking systems & their relative merits and demerits. All of us well realize to what extent banks are important in our lives. They serve the financial requirements of different categories of people in different fields like agriculture, business, and more. There are various types of Banking System Types of Banking System 1- Group Banking Banking system is designed to be used by groups rather than individuals. A common example is a company plan offered to employees. Group banking members may have access to lower interest rates, lower fees, discounts and other perks not available to regular account holders. Group banking can also provide a more personalized banking relationship for the members if the bank designates one representative, who is generally more knowledgeable about the group’s needs, as the point of contact for all the members of the group. 2- Chain Banking Chain banking is a situation in which three or more banks that are independently...