Exercises · Q7
Q.Distinguish between the owned funds and the borrowed funds of the Maharashtra State Co-operative Bank.
Maharashtra MsbshseTextbookSubjectiveImportance★★★★★est
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Start your 14-day free trial to unlock the full solution →The funds of the Maharashtra State Co-operative Bank fall into two classes, which differ on several points:
| Basis | Owned funds | Borrowed funds |
|---|---|---|
| Meaning | The bank's own permanent capital | Resources owed to others and repayable |
| Made up of | Share capital (subscribed by the DCCBs and the State Government), entrance fees, reserve fund and other reserves, undistributed profit | Deposits from member banks, institutions, government and the public; borrowings and refinance from the RBI and NABARD |
| Repayment | Not repayable to outsiders; form a permanent cushion | Repayable to depositors and lenders |
| Role | Give the bank strength and safety | Supply the bulk of the money the bank lends |
| Special source | — | Refinance from the RBI and NABARD, the source special to an apex bank |
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