Question

Explain the role of

1. Microfinance institutions.
2. Cooperative banks.

Answer 1

Instructions:

Explain their main function with an example for each.
Solution:

1. Microfinance institutions aim to provide different financial services including micro credit to common people, especially amongst the low income group. Kudambsaree, in Kerala, is one of the examples of a microfinance company.
2. Cooperative banks aim to provide monetary help to people, especially in rural areas. Farmers, artisans, small scale entrepreneurs are mainly the people who avail services from cooperative banks. For example, Kerala State Cooperative Bank.