All financial Institutions are banking institutions
True of False with Reasons:-
‘All financial Institutions are banking institutions.
Anurag Pathak Changed status to publish December 24, 2023
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.
Anurag Pathak Changed status to publish December 24, 2023
