Economics • Banking & FinanceMedium
How do cooperative credit societies in Sikkim bridge the gap left by commercial banks in remote high-altitude settlements?
A. By operating local banking touchpoints that understand community trust and customary practices✓ Correct Answer
B. By offering high-frequency algorithmic trading facilities
C. By managing the foreign exchange reserves of the state
D. By imposing stringent international credit rating prerequisites
💡 Solution & Explanation
Cooperative societies leverage local social capital and community proximity to extend credit where commercial bank branch expansion is economically unviable due to low population density. High-frequency trading and foreign exchange management are restricted to major financial centers. Grassroots cooperatives remain essential for financial penetration in mountain hamlets.
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