Advantages and disadvantages of banks

Answer 1

Now a days, banks are the backbone of any economy. Without banking flourishing banking system, no country can prosper in present day era. Banks provide loans and advances to small,medium and big industries for their sustained growth. Banks help to inculcate the savings habit among the masses. Specially, the forex transactions are not possible without the medium of bank. Banks have their disadvantages too. Banks offer nominal or medium interest rate on deposits, whereas their interest rates on loans are advances are bit higher. In Savings Bank accounts, banks generally do not offer any interest or a nominal rate of interest. Banks' deposit maturities are subjected to income tax and offer no life coverage.