Preview

Banking Sector

Powerful Essays
Open Document
Open Document
5247 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Banking Sector
Indian Streams Reserach Journal
Vol.2,Issue.I/Feb; 12pp.1-4

Muniraju M Research Papers

ISSN:-2230-7850

BANKING SECTOR REFORMS IN INDIA: THE RATIONALE AND EFFICACY

Kumar B Assistant Librarian, University College of Arts, Tumkur University Tumkur- 572103.

Muniraju M Assistant Professor, Department of Studies and Research in Economics, Tumkur University, Tumkur – 572 103.

Abstract
The Indian banking industry is measured as a flourishing and the secure in the banking world. The country 's economy growth rate by over 9 percent since last several years and that has made it regarded as the next economic power in the world. The paper deals with the banking sector reforms and it has been discussed that India 's banking industry is a mixture of public, private and foreign ownerships. The major dominance of commercial banks can be easily found in Indian banking, although the co-operative and regional rural banks have little business segment. Further the paper has discussed an evaluation of banking sector reforms and economic growth of the country since from the globalization and its effects on Indian economy. Competition among financial intermediaries gradually helped the interest rates to decline. Deregulation added to it.

The real interest rate was maintained. The borrowers did not pay high price while depositors had incentives to save. It was something between the nominal rate of interest and the expected rate of inflation. Finally the paper deals with conclusion and inflation rates from the different years and regulation of economy and finance of the country through government policies and banking sector reforms. Key Words: Banking Sector, Reforms, Economy, Inflation, Growth Introduction: The efficient, dynamic and effective banking sector plays a decisive role in accelerating the rate of economic growth in any economy. In the wake of contemporary economic changes in the world economy and other domestic crises like adverse balance of payments



References: 1. Ahulwalia M. S (1993), India 's Economic Reforms, The future of Economic Reforms, Oxford University Press. 2. Amit Kumar Dwivedi; D. Kumara Charyulu (2011), 'Efficiency of Indian Banking Industry in the Post-Reform Era, ' Research and Publications, IIMA, W.P. No. 2011-03-01, p. 2. 3. Das A (1999), Technical Allocative and scale Efficiency of Public Sector banks,RBI Occasional papers,18. 4. Ram Mohan T. T (2001), Setting the Stages for Bank Privatization, Economic and Political Weekly, No36. 5. Reddy Y. V. (2002), “Monetary and Financial Sector Reforms in India: A Practitioner 's Perspective”, The Indian Economy Conference, Program on Comparative Economic Development (PCED) at Cornell University, USA. 6. Sarker. P. C and A. Das, Development of Composite Index of Banking Efficiency: The Indian Case, Occasional papers, 18,199. 7. Swami S. B and Subrahmanyam G. (1993), Comparative Performance of Public sector banks in India, Prajnan 23. 8. Jalan B (2000), Agenda for Banking in the New Millenium, Reserve Bank of India Bulletin, New Delhi. 9. Uppal R. K (2011), India banking sector reforms: Rationale, efficacy and necessity of third reforms, ' Business Administration and Management (BAM), Prime Journals, Vol. 1(3), March 10th 2011, pp. 68-72. 10. h t t p : / / k a l y a n city.blogspot.com/2010/09/economic-reforms-ofbanking-sector-in.html (Retrieved on 12th Nov, 2011). 11. http://pptbusiness.net/ppt/bankingsystem/ (Retrieved on 19th Nov, 2011). 1 2 . http://www.primejournal.org/BAM/pdf/2011/mar /Uppal%20pdf.pdf (Accessed on 23rd Dec, 2011). Please cite this Article as : bY Muniraju M AND Kumar B , BANKING SECTOR REFORMS IN INDIA: THE RATIONALE AND EFFICACY : Indian Streams Research Journal (Feb ; 2012)

You May Also Find These Documents Helpful

  • Good Essays

    Indian Banking system has not only made rapid strides in net work expansion but it itself has undergone a complete and never-dreamt of transformation in its very avowed objectives, approaches, and scale of operations. Technology has indeed played a significant role in this seachange. Nationalisation of banks in two spells in 1969 and 1980 was a watershed in the annals ofbanking sector in India. Banks were required to saunter along a new path untrodden so long. Instead of remaining as mere mobilisers of deposits and purveyors of credit, they began to be used as catalysts for bringing about socio- economic transformation of our country- a goal considered hitherto to be outside the banking arena.…

    • 806 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    11. Kajal Choudhary and Monika Sharma (2011),”Performance of Indian public sector banks and private sector banks- a comparative study”, International journal of innovation, management and technology, vol 2, no 3, June 2011,Pages 249 – 256.…

    • 29317 Words
    • 124 Pages
    Powerful Essays
  • Powerful Essays

    Report on Banking Sector

    • 15452 Words
    • 62 Pages

    The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian…

    • 15452 Words
    • 62 Pages
    Powerful Essays
  • Powerful Essays

    Negotiable Instruments

    • 64211 Words
    • 257 Pages

    Bhole, L.M., Financial Institutions and Markets, 4th ed., Tata McGraw Hills, New Delhi, 2004. Bank Financial Management, Indian Institute of Banking and Finance, Taxman’s Publications, July 2004. Sinkey, J.F., Commercial Bank Financial Management, Prentice Hall, New Delhi, 2002. Joshi, V.C. and Joshi W., Managing Indian Banks, Response Books, New Delhi, 2002. Traded Progress of Banking in India, Govt. of India, 2005-06. Palfreman, D. and Ford, O.: Elements of Banking 1 and 2, Macdonald ad Evans Publications, Estover, 1985.…

    • 64211 Words
    • 257 Pages
    Powerful Essays
  • Powerful Essays

    Wto and Indian Banking

    • 3138 Words
    • 13 Pages

    India had a deep rooted and well structured banking system since independence. After nationalization of the banks, the focus of the Indian banking System has been two fold - commercial and social.…

    • 3138 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    According to the Banking Companies Act, 1970, the aim of nationalization of banks in India is “to control the heights of the economy and to meet progressively and serve better the needs of development of the economy in conformity with national policy and objectives.”…

    • 10556 Words
    • 43 Pages
    Powerful Essays
  • Powerful Essays

    History of Banking in India

    • 2982 Words
    • 12 Pages

    For the past three decades India’s banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons for India’s growth. The government’s regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India.…

    • 2982 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    The Government of India started the process of liberalization and globalization of economy, especially in the financial sector with the setting up of the Committee on Financial Sector reforms headed by Mr.Narasimham to suggest reforms to make the Indian financial system more competitive and vibrant. The committee strongly recommended operational flexibility and functional autonomy to banks to enhance efficiency and productivity along with…

    • 771 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Study

    • 299 Words
    • 2 Pages

    References: Varshney, P.N., 2010, Banking Law and Practise, S Chand and Sons Radhakrishnan, T.S.; 2005, Principals of Banking; Macmillan Mishra, R.K.; Banking Sector Reforms and Agricultural Finance; Sonali Publications Padhy Kishore C; Padhy Manoranjan; 2011; Banking Future; Dominant Publishers and Distributors…

    • 299 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Indian Banking Industry

    • 2051 Words
    • 9 Pages

    The banking industry in India is governed by Banking Regulation Act of India, 1949. Since 1949, this sector has undergone phenomenal reforms due to the efforts and the vision of the policymakers. The first phase of reform began with nationalization of the 14 banks in 1969. At this stage, priority sectors were identified and banking support was given to them. The second phase was the nationalization of 6 more banks in 1980. However, what can be considered as a breakthrough in banking services was the entry to private sector banks which was initiated in 1993. Eight new banks entered the market at this stage with state – of – art technology and a brought with them a new wave of professionalism. It was at this time that India was introduced to the concept of Debit and Credit cards, e-transfer of funds, ATM and mobile banking. It was at this time that competition was truly introduced in this sector.…

    • 2051 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    According to the International Monetary Fund, as of 2011, the Indian economy is the ninth-largest economy by market exchange rates. Behind the mysteriously rapid growth of this newly industrialized country, few know that its banking system, tracing back to the last decades of the 18 century, started off to be unprosperous, though later enhanced. This paper provides an overview of the banking sector in India, including its various categories of financial institutions and their respective functions.…

    • 3337 Words
    • 14 Pages
    Best Essays
  • Best Essays

    Role of CRM in Banking

    • 1814 Words
    • 8 Pages

    There is an unprecedented growth in the field of banking. Indian banking industry is gradually moving towards adopting the best practices in accounting, corporate governance and risk management. Today the banking industry is stronger and capable of withstanding the pressures of competition.…

    • 1814 Words
    • 8 Pages
    Best Essays
  • Best Essays

    Banking industry is the blood vascular system of our economy. The banks have played substantial role in the growth of Indian economy. From the meagre start in 1860 the banks have come to long way. The total shape of banking system was changed in 1991 due to the introduction of financial sector reforms as part of the liberalisation process. These reforms were aimed at enhancing the viability and efficiency of our banking system. Although there is a sustainable increase in deposits of SCB (Schedule Commercial Banks) at an annual average rate of 20.86% during FY09-FY13 there are lot of challenges faced by commercial banks. The challenges are capital adequacy, quality of assets, entry of new banks, regulations and soon.…

    • 2056 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.…

    • 1439 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    During the first phase of financial reforms, there was a nationalization of 14 major banks in 1969. This crucial step led to a shift from Class banking to Mass banking. Since then the growth of the banking industry in India has been a continuous process.…

    • 1119 Words
    • 5 Pages
    Good Essays

Related Topics