question_answer

Direction: Study the following passage carefully and answer the questions given below:

The Banking industry in India plays an important role in the financial system as it provides financial assistance to industrial sector, agricultural sector and household sector. The banking industry contributes to the economical growth of the country as they are the major credit creators of the nation. During the recent time, the banking industry has seen significant development and large investments. The Reserve Bank of India (RBI) is the central bank of India, it regulates, controls and monitors other banks in India. Banks are classified into commercial banks, private sector banks, public sector banks, foreign banks and cooperative banks. Technological advancements have improvised the banking sector. Banking sector provide wide variety of financial services which increases the productivity of the economy. Due to increase in competition, the private sector banks are also trying to improve their performance and increase their profitability position.

Through which process, the banking sector has important role in financial system of the nation?

A) Regulating finance of the government agencies in public policy

B) Credit creation for the public programs of the public banks

C) Financial assistance for the policy based programs of government

D) Improved performance of the industrial sectors and households