With the possible exception of which institutions have the other formal institutions failed to develop a culture of deposit mobilisation, lending to worthwhile borrowers and effective loan recovery?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Commercial banks
Only commercial banks are the possible exception. The other formal institutions failed to build a culture of deposit mobilisation, sound lending and loan recovery.
NCERT (2026-27): “… However, all is not well with our banking system. With the possible exception of the commercial banks, other formal institutions have failed to develop a culture of deposit mobilisation — lending to worthwhile borrowers and effective loan recovery. Agriculture loan default rates have been chronically high. …” |