As we have noticed, many banks are now entering into Insurance business. Why are Banks entering into this sector, particularly when many insurance companies are already there in India? [RBI 2009] (1) By providing insurance products, banks are earning additional revenue in terms of fee/commission. (2) Banks with their huge customer base are leveraging on their existing relationship to convert customers into policyholders. (3) With increase of health-related problems, everybody wants an insurance cover, no matter how big or small it is. Banks are coming up with many attractive offers, which are also affordable.

• A.  Only (1)
• B.  Only (2)
• C.  Only (3)
• D.  All (1), (2) & (3)
• E.  Only (1) & (2)