scholarly journals Role of Increasing Levels of Non-Performing Assets in Bank’s Deteriorating Financial Position After COVID: A Review of Literature

2021 ◽  
Author(s):  
Prasanth Selvam ◽  
S Sudhamathi
Keyword(s):  
Bank Failures ◽  
Review Of Literature ◽  
Indian Government ◽  
Multiple Factors ◽  
Financial Position ◽  
Reserve Bank ◽  
Reserve Bank Of India ◽  
Do So ◽  
Leading Journals

After the 2009 planet-wide crisis, Non-Performing Assets (NPA) have seen an unprecedented rise. Along with the Indian Government, the Reserve Bank of India (RBI) introduced rules and provided guidelines to control the increasing amount of NPA, but failed to do so. The ever - NPA level has contributed to a decline in the bank's revenue and profitability level, adding further to its failures. The report contains an analysis of literature published by renowned scholars on rising NPA and bank failures. The report provides an overview of the diverse perspectives of experts and regulators. It reviews a total of 105 academic papers published in leading journals. The key aim of the report is to address the multiple factors instigating the NPA's growing degree. It also discusses the role of these factors in the failure of the numerous banks following Covid 19. It is undisputed that the journey to recovery is incredibly long, but the study proposes steps to control and decrease increasing NPA levels that can be taken.

Critical Analysis of the Role of the Reserve Bank of India in Managing Liquidity in the Interbank Market amidst Financial Stress

2016 ◽  
Vol 5 (3) ◽  
pp. 33-45
Author(s):  
Rituparna Das
Keyword(s):  
Critical Analysis ◽  
Banking Industry ◽  
Economic Downturn ◽  
Interbank Market ◽  
Liquidity Management ◽  
Management Procedure ◽  
Reserve Bank ◽  
Loan Defaults ◽  
Reserve Bank Of India

During the period 2011-12 of economic downturn characterized typically by economy wide loan defaults many banks in India are reported to have posted adequate levels of capital but experienced difficulties due to unsound liquidity management. In an attempt to examine the ease of liquidity management procedure of the Indian banking industry, this paper critically examines whether the central bank of the country facilitates liquidity management of the banks during the stress periods. The finding is that it does not.

Trends in Public Debt in India: Lessons from Greek Crisis?

2017 ◽  
Vol 2 (1) ◽  
pp. 96-109
Author(s):  
Subhomoy Bhattacharjee ◽  
Dakshita Das
Keyword(s):  
Interest Rates ◽  
Money Supply ◽  
Public Debt ◽  
Large Degree ◽  
The United States ◽  
Tax Revenue ◽  
Indian Government ◽  
The Government ◽  
Do So

There is not much new in the divide in economic literature between fiscal and monetary policy; what is new post-2008 is the emergence of the role of money supply and that of public debt to prominence as the instrument of choice for central banks and the government treasury. To a large degree, money supply and public debt now eclipsed the central role variables such as tax and interest rates had played in the setting of economic policies in countries both developed and developing. While literature is evaluating how the change in the role of these stock parameters to that of policy variables will play out, this article takes up the more mundane task of examining only one of them, which is public debt in the context of India. We believe that there is a key reason to do so. The Indian government has not used public debt as an active policy tool, so far, even as several countries have begun to do so ( Mohanty, 2012 ). Instead, it has held on to a general desideratum of the need to reduce it; borne out of the scare of the balance of payments crisis of 1991. But 25 years after the crisis, it is important to examine if there is a conscious understanding within the government for the need to measure and deploy public debt especially as the room for active deployment of other fiscal tools, namely taxation is circumscribed. By FY14 India’s public debt (centre and states combined), as percentage of GDP, stood at 66.7 per cent; it was 70.6 per cent in FY09. For the sake of comparison, the world’s most indebted countries include Greece, of course, with its general government net debt at 173 per cent of its GDP. Others in the top 20 include Italy, Egypt, Portugal, Spain, France, the United Kingdom, Japan and the United States of America. By current estimates, India does not rank amongst the most indebted countries of the world. But is the position, one of strength or of a passive arrival that offers little or no policy direction to the government? Moreover, this article also argues that in the absence of such direction, there has been a build-up of debt in the economy instead of a reduction. Most of that build-up has been sought to be balanced by recourse to non-tax revenue. As fresh options to tap non-tax revenue dry up, public debt could emerge as the new pressure point for the economy.

scholarly journals IMPACT OF DEMONETIZATION ON INDIAN ECONOMY - A MICRO LEVEL ANALYSIS

2020 ◽  
pp. 42-44
Author(s):  
Dr.Honnappa.S
Keyword(s):  
Tax Evasion ◽  
Rural Areas ◽  
Urban Areas ◽  
Agricultural Sector ◽  
Digital Economy ◽  
Indian Government ◽  
Reserve Bank ◽  
Micro Level ◽  
Level Analysis ◽  
Reserve Bank Of India

Indian government adopted demonetization on 08 November 2016 to tackle with black money and make India a cashless digital economy. As per the yearly report of Reserve Bank of India of 31 March 2016 that total currency notes in circulation is 16.42 lac crore of old Rs. 500 and Rs.1000 banknotes. As per the report of RBI dated on 14-12-2016, the total amount of old notes of value of Rs. 12.44 lac crore has been deposited by the customers till 10-12-2016. Banks started accepting deposits from 10 November but within a period of 15 days approximately half money has been received by the banks. India is the second most populated country in the world with nearly a fifth of the world's population. Out of the total 121 crore Indians of Indian population, 83.3 crore of population live in rural areas while 37.7 crore stay in urban areas, said the Census of India 2011. As a rural populated country most of the rural population are engaged in agricultural activities as most of the population of rural areas depends on agriculture. Agriculture forms the backbone of the country’s economy. The agricultural sector like forestry, logging and fishing accounted for 17% of the GDP contributes most to the overall economic development of India KEY WORDS: Demonetization, Cashless Transactions, , tax evasion, Cash Crunch, Digital Economy.

scholarly journals UPI Challenges and Direction in Fund Management with Special Reference Banking Sector

2021 ◽  
Vol 9 (12) ◽  
pp. 1588-1593
Author(s):  
S.V. Muralidhara
Keyword(s):  
Mobile Phone ◽  
Special Reference ◽  
Banking Sector ◽  
Payment System ◽  
Fund Management ◽  
Indian Government ◽  
Reserve Bank ◽  
The Government ◽  
Digital Transactions ◽  
Reserve Bank Of India

Abstract: After demonetization, there was a massive requirement for currency notes, but the government was unable to provide the required quantity of currency notes, and also Indian government wanted to promote cashless transactions. UPI is built over Immediate Payment Service (IMPS) for transferring funds using Virtual Payment Address (a unique ID provided by the bank). Unified Payments Interface is a payment system launched by (NPCI), which is National Payments Corporation of India, and is regulated by the (RBI) Reserve Bank of India, which provides the facility of instant fund transfer between two bank accounts online through payment apps. Digital transactions by UPI have been made very easy. The UPI service is available 24X7, and it is not like RTGS and NEFT, which do not work on holidays and non-banking hours. This will bring tremendous efficiency to the system and help India become a cashless economy. Keywords: Digital illiteracy, Online payments, cashless economy UPI, Mobile phone, digital payment mode

Evaluation of Financial Inclusion Index for accessing Banking Technology through Rural Population from the States of India

2019 ◽  
Vol 118 (8) ◽  
pp. 261-265
Author(s):  
Dr.M. Bhuvana
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Rural Population ◽  
Research Study ◽  
Financial Inclusion ◽  
Insurance Company ◽  
Indian Government ◽  
Financial Products ◽  
Reserve Bank ◽  
Reserve Bank Of India

Reserve bank of India has described the term Financial Inclusion as the sequence of activities that has taken place in proving financial services to the most vulnerable people in country at a very low affordable cost. The financial services like assess to financial products such as small deposits and savings, providing basic credit requirements through formal financial institutions like post offices, banks, microfinance institutions and banks. Rural people faces may issues and challenges in using financial products and services to meet their basic needs. Hence this research study has done an analysis to evaluate index of financial inclusion for various states of India with four different types of dimensions like Penetration of Bank Branches in rural areas, Credit Penetration, Deposit and Penetration of Insurance Companies in the rural regions of all the states of India. Different resources namely the website of Reserve Bank of India, Census 2011 data, articles and journals has been utilized to gather the secondary data for the study. The dimensions such as deposit, credit, insurance company penetration and bank branch penetration in rural areas of different states of India has been measured by accessing multidimensional approach to examine financial inclusion index 2018. From the research study, it is found that the states Puducherry, Daman & Diu, Chandigarh and Goa has Financial Inclusion at below average level (between 35-50) and the remaining states in India has financial inclusion at very low level in rural areas (Below 35).As concerned with rural population many states in India has financial inclusion at below average and lower level. The concern authorities from Indian Government should examine those states that are highly eliminated from accessing banking services to restructure the position of financial inclusion

scholarly journals Study of Role of Financial Institution in Financial Inclusion

2020 ◽  
Vol 10 (6) ◽  
pp. 35-40
Author(s):  
Ishan Khatri ◽  
Prarthana Fabyani ◽  
Chehak Rajgarhia ◽  
Sejal Murarka
Keyword(s):  
Financial Services ◽  
Financial Institution ◽  
Vital Role ◽  
Financial Inclusion ◽  
Self Help ◽  
Reserve Bank ◽  
The World ◽  
Self Help Groups ◽  
Reserve Bank Of India

India is one of the largest growing economies in the world. Financial inclusion is providing financial services at an affordable rate to all people. It comes into existence in the year 1950 establishment of Reserve Bank of India. There are various incentives which have been undertaken to increase financial inclusion in India. With the nationalization of commercial banks. And the formation of NABARD Self-help Groups and Kisan credit bank. After 2000, the schemes like Swavalamban swabhiman have been launched to increase its role. The schemes by government of India like PMJDY and Startup India schemes. Financial inclusion helps in forming cashless economy and increase capital formation and increase economic growth of the country. It provides business and growth opportunities to the Intermediaries. This system also provides affordable services to the poor and played a vital role in improving country financial services.

scholarly journals Analyzing the Role of the Goods and Service Tax Network in Helping the State Preserve a Just Social Order

2020 ◽  
Vol 9 (2) ◽  
pp. 19-36
Author(s):  
Kothandaraman Sethuraman
Keyword(s):  
Social Order ◽  
State Policy ◽  
The State ◽  
Goods And Services ◽  
Reserve Bank ◽  
The Common ◽  
Mutually Independent ◽  
Reserve Bank Of India

The Goods and Services Tax Network (GSTN) manages the Common GST Electronic Portal. The payment of money, inclusive of the Goods and Services Taxes (GSTs), is made to the Reserve Bank of India (RBI) in three different ways – It can first be deposited as revenue in compliance with law; it can also be deposited after collection, following notices of demand; and finally it can be deposited after recovery from defaulters, into the respective Consolidated Funds, which are mutually independent parts of central and state treasuries. GST revenues accounted for in the Consolidated Funds would have to be correct, complete and uncontested. The GSTN thereafter manages the digital facilitation of the registration, furnishing returns, computation and settlement of Integrated Goods and Services Tax (IGST), electronic way bill and other functions if prescribed in accordance with law. This paper examines if the functioning of the GSTN within the framework of the Constitution, would enable the State to apply the Directive Principles of State Policy, which guide governance in India, to secure and preserve a just social order.

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