All financial Institutions are banking institutions
True of False with Reasons:-
‘All financial Institutions are banking institutions.
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False,
A financial institution can be a banking institution only when it performs the functions of accepting deposits and advancing loans.
Additional Information:-
The main function of commercial banks is to accept deposits and advance loans. A financial institution can be a banking institution only when it performs both the functions of ‘Accepting Deposits’ and ‘Advancing Loans’.
For example, LIC is not a bank as it does not accept chequeable deposits from the public although it performs the function of lending money.
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