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Indian Economic Policy

Notes 22.4 Key-Words

1. Development banks : Such banks are specially meant for giving loans to the business sector for
the purchase of latest machinery and equipments. Examples: SFCs (State
Financial Corporation of India) and IFCI (Indian Finance Corporation of
India).
2. Co-operative banks : These banks are nothing but an association of members who group
together for self-help and mutual-help. Their way of working is the same
as commercial banks. But they are quite different. Co operative banks in
India are registered under the Co-operative Societies Act, 1965. The
cooperative bank is regulated by the RBI.
22.5 Review Questions

1. What is foreign trade? Discuss its status before Independence.
2. Discuss the balance of payments.
Answers: Self-Assessment

1. (i)(c) (ii)(b) (iii)(a) (iv)(c) (v)(c)
(vi)(b) (vii)(c) (viii)(b)
22.6 Further Readings

1. The Indian Economy; S.K. Ray; Prentic, Hall of India Private Limited
New Delhi - 110001.
2. Indian Economy; Gaurav Datt and Aswani Mahajan; S. Chand and Company
LTD. Ram Nagar, New Delhi-110055.

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