Unit Banking - Its Merits and Demerits
The Unit Banking system is that system of banking under which an individual bank carries on banking business either through a single office or through a few offices operating within a limited area (Note: unit - single, remember like that) . In this system, independent, isolated units perform banking business. The size and are of operation of unit banking are much smaller when compared to branch banking. Unit banking system originated and grown in the U.S.A. Different unit banks in the U.S.A are linked with each other financial centers in the country through "Correspondent Banking".