Tap every institution that is part of the rural banking structure.
Exercise and reference answers
- Questions
- Items
- Text
- Regional rural banks
- Matches the category
- Yes
- Text
- Commercial banks
- Matches the category
- Yes
- Text
- Cooperatives
- Matches the category
- Yes
- Text
- Land development banks
- Matches the category
- Yes
- Text
- Stock exchanges
- Matches the category
- No
- Text
- Mutual fund houses
- Matches the category
- No
- Category
- Part of the rural banking structure
- Items
- Text
- Built from small member savings
- Matches the category
- Yes
- Text
- Lend without heavy collateral
- Matches the category
- Yes
- Text
- Repayment in small instalments
- Matches the category
- Yes
- Text
- Funded by foreign currency deposits
- Matches the category
- No
- Text
- Require land as security
- Matches the category
- No
- Category
- True of Self-Help Groups
- Instructions
- Tap only the ones that belong.
Explanation
Rural banking runs on four institution types: commercial banks, regional rural banks, cooperatives and land development banks.
SHGs sit alongside them, pooling small member savings and lending back in instalments, which is exactly what lets households without collateral borrow at all.