Question

Match the item of List I with the items of List II and suggest the correct code:

List I		List II
a.	Relationship Banking	i.	Dealing in hundis and acceptance of deposits
b.	Merchant Banking	ii.	Widening the entrepreurial base and assist in a rapid rate of industrial growth
c.	Indigenous Banking	iii.	Engaged in the business of capital issue management
d.	Development Banking	iv.	Creating, maintaining and enhancing strong relationship with customers

1. a-iv, b-ii, c-i, d-iii
2. a-ii, b-iii, c-i, d-iv
3. a-iv, b-iii, c-i, d-ii
4. a-ii, b-i, c-iv, d-iii

Answer 1

Correct Answer - Option 1 : a-iv, b-ii, c-i, d-iii

Below is the explanation of different types of banking:

1. Relationship banking is a strategy used by banks to offer a variety of different products, strengthen customer loyalty, and generate additional revenue. Small, mid-sized, and large money center banks all use relationship banking strategies.
2. Merchant banking is a combination of banking and consultancy services. It provides consultancy to its clients for financial, marketing, managerial, and legal matters. Consultancy means to provide advice, guidance, and service. It helps a business person to start a business. It helps to raise (collect) finance.
3. Indigenous bankers constitute the ancient banking system of India. According to the Indian Central Banking Enquiry Committee, an indigenous banker or bank is defined as an individual or private firm which receives deposits, deals in hundies, or engages itself in lending money.
4. Development banks are financial institutions that provide long-term credit for capital-intensive investments spread over a long period and yielding low rates of return, such as urban infrastructure, mining and heavy industry, and irrigation systems.

Therefore, the correct match is:

List I		List II
a.	Relationship Banking	i.	Creating, maintaining, and enhancing the strong relationship with customers
b.	Merchant Banking	ii.	Widening the entrepreneurial base and assist in a rapid rate of industrial growth
c.	Indigenous Banking	iii.	Dealing in hundies and acceptance of deposits
d.	Development Banking	iv.	Engaged in the business of capital issue management

Hence Option1 is the correct answer.