Nature of world

in the pervious lession you learnt that commercial banks usually provide short term finance to busoiness firm of leans and advances cash credit, overdraft, etc. but now a days, most of the commercial banks have also started term leading (long and medium term) and providing need based finance, of different time periods to firms of all sizes. consistent with the policy of liberalization, the banks have been allowed to evolve their own methods of assesing financal needs of the borrowers and extend them the term, loans for longer size and larger periods some of the banks have also started their industrial branches to finance exclusively to industrial enterprises. thus the commercial banks also now act as an important sources of medium term and long term finance for the business.

you know that a larger number of cooperative banks are new being operating in our country. these banks have the license from the RBI to operate like commercial banks. they also some times provide long term finances to small and medium scale cooperative industrial