Explain the concept of 'unit banking'. What are the merits and demerits of unit banking system? Suggest measures to overcome the demerits of unit banking system.

Unit banking refers to a system in which banks operate as single, independent entities without any branches or affiliations with other banks. In a unit banking system, each bank functions autonomously within its own geographical area, serving the financial needs of customers within that area. This concept stands in contrast to branch banking, where a single bank can have multiple branches across different locations.

Merits of Unit Banking System:

1. Local Focus: Unit banks are deeply rooted in their local communities. They understand the financial needs and preferences of their customers, allowing for personalized services tailored to local economic conditions.

2. Quick Decision Making: With centralized decision-making processes, unit banks can respond rapidly to customer needs and changes in the local market without the bureaucratic delays often associated with larger banking structures.

3. Enhanced Accountability: Since unit banks operate independently, there is a higher level of accountability for their actions. This accountability fosters a sense of responsibility towards customers and the local community.

4. Reduced Systemic Risk: In a unit banking ____ _______ __________ _____ _________ ______ __________ __________.
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