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

This question was previously asked in
UGC Paper 2: Commerce_17th Oct 2020 Shift 2
View all UGC NET Papers >
  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 (Detailed Solution Below)

Option 3 : a-iv, b-iii, c-i, d-ii
Free
UGC NET Paper 1: Held on 21st August 2024 Shift 1
10.8 K Users
50 Questions 100 Marks 60 Mins

Detailed Solution

Download Solution PDF

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

iv.

Creating, maintaining, and enhancing the strong relationship with customers

b.

Merchant Banking

Iii.

Engaged in the business of capital issue management

c.

Indigenous Banking

i.

Dealing in hundies and acceptance of deposits

d.

Development Banking

ii.

Widening the entrepreneurial base and assist in a rapid rate of industrial growth

Hence Option 3 is the correct answer.

Latest UGC NET Updates

Last updated on Jun 12, 2025

-> The UGC NET June 2025 exam will be conducted from 25th to 29th June 2025.

-> The UGC-NET exam takes place for 85 subjects, to determine the eligibility for 'Junior Research Fellowship’ and ‘Assistant Professor’ posts, as well as for PhD. admissions.

-> The exam is conducted bi-annually - in June and December cycles.

-> The exam comprises two papers - Paper I and Paper II. Paper I consists of 50 questions and Paper II consists of 100 questions. 

-> The candidates who are preparing for the exam can check the UGC NET Previous Year Papers and UGC NET Test Series to boost their preparations.

Get Free Access Now
Hot Links: teen patti refer earn mpl teen patti teen patti real cash apk teen patti master new version