Author : Niti Bhasin
Publisher :
ISBN 13 :
Total Pages : 320 pages
Book Rating : 4.3/5 (91 download)
Book Synopsis Banking Developments in India 1947 to 2007 by : Niti Bhasin
Download or read book Banking Developments in India 1947 to 2007 written by Niti Bhasin and published by . This book was released on 2006 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The banking system of India consists of the Central Bank (Reserve Bank of India), Commercial Banks, Co-operative Banks and Development Banks (development finance institutions). These institutions, which provide a meeting ground for the savers and the investors, form the core of India's financial sector. Through mobilisation of resources and their better allocation, banks play an important role in the development process of underdeveloped countries. Banking development in India has been, by and large, a state-induced activity. The Reserve Bank of India was nationalised in 1949 followed by the nationalisation of Imperial Bank of India (now the State Bank of India) in 1955. In 1969, 14 major commercial banks were nationalised and the exercise was repeated when 6 more commercial banks were nationalised in 1980. Thus, prior to economic reforms initiated in early 1990s, banking business in India was a near-monopoly of the Government of India. The underlying philosophy of this approach was to encourage growth, via availability of adequate credit at reasonable/concessional rates of interest, in areas where commercial considerations did not allow for disbursal of credit. Nationalisation of commercial banks was a mixed blessing. After nationalisation there was a shift of emphasis from industry to agriculture. The country witnessed rapid expansion in bank branches, even in rural areas. However, bank nationalisation created its own problems like excessive bureaucratization, red-tapism and disruptive tactics of trade unions of bank employees. It was in this backdrop that wide-ranging banking sector reforms were introduced as in integral part of the economic reforms programme started in early 1990s and which is still under way. The present book explains and examines the changes which have swept the Indian banking sector over the last 60 years since independence. The approach to the subject is mainly descriptive, interested by critical comments at places."