RBI: CARVING A NEW ROLE AS THE CENTRAL BANK

Paradigm ◽  
1997 ◽  
Vol 1 (1) ◽  
pp. 148-153
Author(s):  
Amitabh Tewary ◽  
Dhananjay Bhardwaj
Keyword(s):  
Central Bank ◽  
Banking Sector ◽  
Financial Sector ◽  
British Raj ◽  
Reserve Bank ◽  
Bank Of England ◽  
The Many ◽  
Reserve Bank Of India ◽  
Legislative Assembly

Among the many legacies of the British Raj, a few have endured the winds of change on account of an inbuilt element of indispensability and have, therefore, retained their relevance with their compositions in corporating the required corrections from time to time. One such prominent edifice is the Reserve Bank of India (hereafter referred to as RBI) which since its inception in 1935 through an act of then Indian Legislative assembly has grown from strength to strength, from being a shareholder's bank, modelled on the lines of the Bank of England, to being a watchdog of Indian Banking sector and financial sector reforms of the '90s it has seen and survived a lot.

Marketing of Banking Services in India

2017 ◽  
pp. 107-133
Author(s):  
Rakhi Arora
Keyword(s):  
Banking Sector ◽  
Technological Development ◽  
Banking System ◽  
Foreign Banks ◽  
Indian Society ◽  
Reserve Bank ◽  
Nationalised Banks ◽  
The Government ◽  
Indian Banks ◽  
Reserve Bank Of India

Banking sector plays an important role in Indian Financial Sector.It has a long history that has gone through various stages of development after Liberalization, Privatization, and Globalization (LPG) has taken place. The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks. The scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934. The scheduled banks are further classified into: nationalised banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks, which are controlled and governed by Reserve Bank of India (Central Bank of India) and Ministry of Finance. In this era, the government has issued licenses to the new entrants to establish new banks to serve the Indian society. This chapter focuses on to show the various undergone phases of Indian banking system, growth of deposits and credits, technological development in Indian banking sector, services provided by the Indian banks, benefits and challenges faced by the Indian banks.

Recent Changes in the Theory and Policy of Cash Reserves Ratio and Statutory Liquidity Ratio: A Critical Appraisal

1993 ◽  
Vol 18 (4) ◽  
pp. 3-14
Author(s):  
L M Bhole
Keyword(s):  
Critical Appraisal ◽  
Financial Sector ◽  
Economic Conditions ◽  
Reserve Bank ◽  
The Future ◽  
Cash Reserves ◽  
Reserve Bank Of India

As a part of financial sector reforms, the Reserve Bank of India is committed to a reduction in the Cash Reserves Ratio (CRR) and the Statutory Liquidity Ratio (SLR). This paper by L M Bhole examines this issue critically and argues that the present economic conditions as well as the future economic scenario in India do not warrant a reduction in the CRR and the SLR.

scholarly journals A Study of Non Performing Advances and It’s Management With Special Reference to Punjab National Bank

2021 ◽  
pp. 507-512
Author(s):  
Dr. Martha Sharma
Keyword(s):  
Banking Sector ◽  
Negative Impact ◽  
Capital Adequacy ◽  
Reserve Bank ◽  
Capital Adequacy Ratio ◽  
National Bank ◽  
Performance Area ◽  
Definition Of ◽  
Reserve Bank Of India

Banking industry plays an important role in the development of an economy. Banks have become very cautious in extending loans. The reason being mounting non-performing assets (NPAs). NPAs put negative impact on the profitability, capital adequacy ratio and credibility of banks. It is defined as a loan asset, which has ceased to generate any income for a bank whether in the form of interest or principal repayment. As per the prudential norms suggested by the Reserve Bank of India (RBI), a bank cannot book interest on an NPA on accrual basis. In other words, such interests can be booked only when it has been actually received. Therefore, this has become what is called as a ‘critical performance area’ of the banking sector as the level of NPAs affects the profitability of a bank. This paper touches upon the meaning and consequently the definition of a non-Performing asset, the conceptual framework of non-performing assets, classification of loan assets and provisions. The study also evaluates the adverse effect of non-performing assets on the return on total assets of Punjab National Bank Limited for the period 2013 to 2015, 2016-17, and 2019-20. Particularly discussing some remedial measures taken up by the Bank to overcome this situation of NPA.

scholarly journals BANKING SECTOR ORIENTED FINANCIAL INCLUSION IN INDIA: A LONG TERM PERSPECTIVE

2020 ◽  
pp. 42-59
Author(s):  
Sana Pathan ◽  
Archana Fulwari
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Inclusive Growth ◽  
Long Run ◽  
Reserve Bank ◽  
The Government ◽  
Improve Access ◽  
Reserve Bank Of India

Financial Inclusion is an emerging concept. The objective of the government behind 100 percent Financial Inclusion is to have inclusive growth in India. Several initiatives have been taken by the Government of India and the Reserve Bank of India to improve access to financial services. To measure the effectiveness of these initiatives there is need to measure the extent of Financial Inclusion. Financial Inclusion can be measured by gauging the progress in access to and usage of a range of products and services of financial institutions over time. The present study sought to propose an index to measure the extent of banking sector oriented Financial Inclusion in India over a period of time rather than a cross-section study which has been the focus of many a studies. The study used more specific indicators of banks-centric financial inclusion dimensions to gauge the long run trend in Financial Inclusion in India. The results indicate that there is much improvement in Financial Inclusion in India since the implementation of financial sector reforms.

India’s banks will struggle to inspire confidence

2020 ◽  
Keyword(s):  
Private Sector ◽  
Banking Sector ◽  
The State ◽  
Regulatory Oversight ◽  
Content Type ◽  
Shadow Banks ◽  
Reserve Bank ◽  
High Level ◽  
Bad Debt ◽  
Reserve Bank Of India

Subject Problems in India's banking sector. Significance The Reserve Bank of India (RBI) earlier this month stepped in to rescue imperilled Yes Bank. The private sector lender had accumulated a high level of bad debt. Impacts Indian borrowers will be increasingly distrustful of shadow banks as well as banks. The State Bank of India could come under strain owing to its need to support Yes Bank financially. The RBI will come under growing pressure to improve its regulatory oversight of the banking sector.

Diffusion and Adoption of Credit Cards in Indian Banking Sector

2018 ◽  
Vol 1 (2) ◽  
pp. 1-20
Author(s):  
Dr. Mandeep Kaur ◽  
Dr.Kamalpreet Kaur
Keyword(s):  
Credit Card ◽  
Banking Sector ◽  
Credit Cards ◽  
Annual Reports ◽  
Banking Services ◽  
Time Period ◽  
Dichotomous Variable ◽  
Reserve Bank ◽  
The Status ◽  
Reserve Bank Of India

The study emphasizes on the identification of factors, which may have influenced the banks to adopt credit cards along with their traditional banking services. Bank specific variables were investigated to deepen the understanding on the diffusion and adoption of credit cards. The data relating to sampled banks’ characteristics have been collected from database of Reserve Bank of India. To know about the status of the bank regarding its adoption of credit card, the websites and annual reports of the banks were explored during different intervals of time period of the study. The study considers the dependent variable i.e. adoption of credit cards as dichotomous variable, whether or not a bank renders the credit card services, denoting 1 if the bank has adopted credit card otherwise 0. The logistic regression has thus been applied to get the valid and reliable results. The empirical findings reveal that, size, non-interest income, non performing assets, profitability, age and market share of the bank are the variables which have contributed significantly in the diffusion and adoption of credit cards.

The Devil’s Laugh at Corporate Governance: The Case of Punjab and Maharashtra Co-operative Bank (PMC Bank) India

2021 ◽  
pp. 097468622110473
Author(s):  
Ambuj Gupta
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Banking System ◽  
Chief Executive ◽  
Banking Supervision ◽  
Loan Portfolio ◽  
Reserve Bank ◽  
Crony Capitalism ◽  
Insolvency Proceedings ◽  
Reserve Bank Of India

The trust of depositors in the Indian banking system was shaken in September 2019 when the five-page confession letter written by Joy K Thomas, Managing Director and Chief Executive Officer of Punjab and Maharashtra Co-operative Bank (PMC Bank), one of the ten largest co-operative banks in India revealed gross financial irregularities, collusion and fraud in banking operations of PMC Bank from 2008 onwards. The Reserve Bank of India (RBI) came into swift action and placed curbs on routine banking activities and restricted the withdrawal of money to a limited amount. Succumbing to the shock, depositors protested at several places and even, eleven depositors lost their lives. With a huge exposure of 73% of the overall loan portfolio to a single borrower, Housing and Development Infrastructure Ltd (HDIL) & group companies, that too facing insolvency proceedings, the recovery of full money was almost impossible. The malice at PMC Bank is the classic case of crony capitalism, collusion and fraud, and failure of corporate governance. The case draws important lessons for reforming co-operative banking sector and strengthening banking supervision in the country.

scholarly journals Analysis of Technical Efficiency of Indian Banking Sector

2014 ◽  
Vol 3 (1) ◽  
pp. 150-160
Author(s):  
Dipayan Roy
Keyword(s):  
Capital Structure ◽  
Business Strategy ◽  
Banking Sector ◽  
Data Envelopment ◽  
Continuous Change ◽  
Ownership Structures ◽  
Banking Regulations ◽  
Reserve Bank ◽  
Using Data ◽  
Reserve Bank Of India

The proactively evolved banking regulations in the Indian Banking sector under the authorative directive of the Reserve bank of India (RBI) has often brought about a change in the business strategy, capital structure and operations of the banks in the Indian banking sector. During these events of continuous change and adoption of Basel norms, we analyse the efficiency of the Indian banking sector with using Data Envelopment Analysis across three economic eras andacross the different ownership structures. The determinants of efficiency are selected on the basis of intermediation approach. We also attempt to identify whether the inefficiency arises from managerial incompetence or improper size and resource allocation. From our analysis, we identify the main cause of inefficiency in the Indian Banking sector to be arising out of improper size allocation.

scholarly journals An Empirical Study on the Big Consolidations of Indian Banking Industry

2019 ◽  
Vol 7 (3) ◽  
pp. 102-108
Author(s):  
T P Ram Prasad ◽  
T T Karthik
Keyword(s):  
Empirical Study ◽  
Banking Sector ◽  
Banking Industry ◽  
Level Structure ◽  
Secondary Sources ◽  
Reserve Bank ◽  
The Government ◽  
Reserve Bank Of India

India declared a broad consolidation of state-claimed banks that will see 10 of them being merged to frame four greater moneylenders to reinforce a sector battling with a terrible advance cleanup and planned for making loan specialists of worldwide scale that can bolster the economy’s flood to $5 trillion by 2024. The government additionally reported administration changes to improve their wellbeing. This was the most recent in a progression of announcements by the government since a week ago as it looks to animate demand and resuscitate the economy. In a different announcement, the government said development had dropped to a six-year low in the quarter to June. The most recent consolidation move will slice the quantity of state-claimed loan specialists to 12 from 27 of every 2017, Sitharaman stated, featuring the banking changes embraced by the Narenda Modi government that have likewise included noteworthy cleaning up of asset reports. This isn’t the first occasion when that the possibility of merging state-claimed banks has picked up momentum. In his way breaking 1991 report on banking sector changes, M. Narasimham, a former Reserve Bank of India senator, had recommended mergers to shape a three-level structure with three enormous banks with international nearness at the best, eight to 10 national banks at level two, and countless provincial and nearby banks at the base. Afterward, the P.J. Nayak Committee had additionally recommended that state-run banks ought to either be merged or privatize. To be sure, as per Indian Banking Association information, there have been in any event 49 mergers since 1985. Hence, the present study has been focused to highlight the brief of top vital consolidation on Indian Banking sector and study based on secondary sources of data.

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