scholarly journals Financial Frauds on Financial Performance of Banking Industry

The growth of Indian Economy is a combination of contribution of different sectors. The banking industry is the back bone of Indian Economy and its growing role in the Global Economy. Since, nationalization banking industry has witnessed many ups and downs in its sustainability. Though the banking industry is regulated by the Reserve Bank of India and policies of the Government from time to time towards its sustainability it needs to bring reforms in the strict implementation of Banking Regulation Act. During last two decades, banking industry has been reeling under financial crisis, losses and debts due to liberal loan sanction policies and poor recovery rate. This was due to frauds and corrupt practices due to some or other reason. This leads to financial burden not only on the Government but also on the people of the country. The present research paper examines the reasons for financial frauds and necessary suggestions are being made to mitigate the frauds and to develop strong and efficient control mechanism.

2019 ◽  
Vol 7 (3) ◽  
pp. 102-108
Author(s):  
T P Ram Prasad ◽  
T T Karthik

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.


2019 ◽  
Vol 8 (2) ◽  
pp. 108-113
Author(s):  
R. Mohammed Abubakkar Siddique ◽  
M. Selvakumar

Banking plays a very important role in the development of the economy. In order to develop the rural areas various schemes were introduced by the government of India and Reserve bank of India. The people must make use of those schemes. Banking penetration must be followed by the customer behavior towards the banking products and services. This customer behavior leads to the financial empowerment of the people which enhances the financial planning, financial awareness and financial literacy. This paper studies about the identification of the factors assigned for the variables of banking penetration, customer behavior and financial empowerment of the rural people.


The present situation of Indian economy is worse. The GDP growth rate is 5% which is very low compared to last five years trend. After a record fell down of short-term interest rates of commercial banks (below one percent), the Reserve bank of India has turned to quantitative easing (QE) to hold up economic growth. It is used by the government to amplify the supply of money in the economy. It leads to an increase in lending by commercial banks and spending by customers subsequently. On the other hand, these policies will boomerang greatly on economy and leads to extraordinarily high levels of inflation. If commercial banks fail to afford excess reserves, it may direct to unhinge in the money market. Simply it jeopardizes the entire economic system. To come out from this, Reserve Bank of India injects a fixed quantity of money into the economy by massive and unprecedented purchasing of financial assets from commercial banks and private entities. This leads to an increase in banks reserves. Quantitative easing is not a new word to the economic world; it is most popular from the times of great recession in US economy. There has been an explode of research on QE and its effects. Past studies tremendously agree that QE helps in ease financial conditions and there is no reason to doubt that it supports economic growth. It is not only very powerful in times of financial crisis, but also has a momentous effect in normal times. By and large, this research paper focuses on finding the reasons behind the slowdown of growth rate of Indian economy and provides the likely solutions to come out from the crisis.


2019 ◽  
Vol 8 (3) ◽  
pp. 7555-7558

The present situation of Indian economy is worse. The GDP growth rate is 5% which is very low compared to last five years trend. After a record fell down of short-term interest rates of commercial banks (below one percent), the Reserve bank of India has turned to quantitative easing (QE) to hold up economic growth. It is used by the government to amplify the supply of money in the economy. It leads to an increase in lending by commercial banks and spending by customers subsequently. On the other hand, these policies will boomerang greatly on economy and leads to extraordinarily high levels of inflation. If commercial banks fail to afford excess reserves, it may direct to unhinge in the money market. Simply it jeopardizes the entire economic system. To come out from this, Reserve Bank of India injects a fixed quantity of money into the economy by massive and unprecedented purchasing of financial assets from commercial banks and private entities. This leads to an increase in banks reserves. Quantitative easing is not a new word to the economic world; it is most popular from the times of great recession in US economy. There has been an explode of research on QE and its effects. Past studies tremendously agree that QE helps in ease financial conditions and there is no reason to doubt that it supports economic growth. It is not only very powerful in times of financial crisis, but also has a momentous effect in normal times. By and large, this research paper focuses on finding the reasons behind the slowdown of growth rate of Indian economy and provides the likely solutions to come out from the crisis.


Author(s):  
Rakhi Arora

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.


2016 ◽  
Vol 5 (3) ◽  
pp. 33-45
Author(s):  
Rituparna Das

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.


2020 ◽  
Vol 1 (2) ◽  
pp. 80-97
Author(s):  
Rina Anggraini ◽  
Dhea Ananda Putri

The Covid-19 pandemic has become a real enemy for all levels of society, both from the middle to upper and lower middle classes, because this pandemic does not only attack the health aspects but all aspects of life, both in terms of economy, religion to lifestyle so that with this condition the government implements the order. a new life called New Normal. The following article is a literature study on how monetary policy is in maintaining the Indonesian economy amid the Covid-19 pandemic and will be reviewed from a sharia perspective, and will see whether government policies are fair and not only benefit certain parties. The method used is to review several research results that have been published in journals that explain the Covid-19 Pandemic and the policies taken by the government. The findings of this study inform that monetary policy is indeed influential in suppressing the inflation rate and can achieve economic stability, and the more obvious thing is that the government and a set of policy makers have been very fast in responding to the impacts arising from the Covid-19 pandemic undermining the global economy with policy stimuli that have been drawn up to fight the pandemic. From the point of view of sharia, the policies taken by the government already have a very good goal, namely meeting the needs of the people is fair and mashlahah is the main goal, the policies carried out by the government are conceptual and seen from the sharia side it is very good and upholds the welfare of the people. Pandemi Covid-19 menjadi musuh nyata bagi seluruh lapisan masyarakat baik dari kalangan menengah ke atas maupun menengah kebawah, karena pandemic ini tidak hanya menyerang aspek kesehatan melainkan seluruh aspek kehidupan, baik dari segi ekonomi, religi hingga gaya hidup sehingga dengan keadaan ini pemerintah menerapkan tatanan kehidupan baru yang disebut New Normal. Tulisan berikut ini adalah studi literature tentang bagaimana kebijakan moneter dalam menjaga perekonomian Indonesia ditengah masa pandemic Covid-19 dan akan ditinjau berdasarkan perspektif syariah, serta akan melihat apakah kebijakan pemerintah sudah adil dan tidak hanya menguntungkan pihak tertentu. Metode yang digunakan adalah mengkaji beberapa hasil penelitian yang pernah dimuat pada jurnal-jurnal yang menjelaskan seputar Pandemi Covid-19 dan kebijakan-kebijakan yang diambil oleh pemerintah. Temuan penelitian ini menginformasikan bahwa kebijakan moneter memang berpengaruh dalam menekan laju inflasi dan dapat mencapai kestabilan perekonomian, dan hal yang lebih nyata pada saat ini pemerintah dan seperangkat pembuat kebijakannya sudah dengan sangat cepat dalam menanggapi dampak-dampak yang timbul akibat pandemic Covid-19 yang telah merusak perekonomian global dengan stimulus- stimulus kebijakan yang telah disusun demi melawan pandemic. Dari sudut pandang syariah, kebijakan yang diambil oleh pemerintah sudah memiliki tujuan yang sangat baik, yaitu pemenuhan kebutuhan rakyat sudah adil dan mashlahah menjadi tujuan utama, pada intinya kebijakan yang dilakukan pemerintah secara konseptual dan dilihat dari sisi syariah sudah sangat baik dan menjunjung tinggi kesejahteraan rakyat.


Subject Implementation of India's new Insolvency and Bankruptcy Code. Significance Shrinking bank credit is hindering India’s ability to finance spending. The Reserve Bank of India (RBI) is relying on the recently instituted Insolvency and Bankruptcy Code (IBC) as the principal instrument to address the problem of stressed assets in the banking system. Impacts The government may accelerate plans to merge stronger and weaker PSBs. Indian corporates may increase their issue of bonds denominated in domestic currency. Prime Minister Narendra Modi will emphasise job creation rather than investment until the next election.


2020 ◽  
pp. 42-59
Author(s):  
Sana Pathan ◽  
Archana Fulwari

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.


Author(s):  
Ravi Sinha ◽  
Mrinal Gaurav

Knowledge development at the regional level is basic to the strengthening of knowledge economy. Though there are many examples of universities taking up community service learning (CSL), they are alarmingly preoccupied with student outcomes and institutional interests. They focus more on achieving academic aims and bolstering the interests and power base of the academy, rather than fulfilling the goals of knowledge economy. Chandra and Mahato (2011) opine that in recent years, Non Governmental Organizations (NGOs) have emerged as powerful sources for social change within developing countries. Since the vast majority of them exist outside of the government, their programs emanate more from the expressed needs of the people rather than from governments. The participation of local level bodies including NGOs in establishing partnerships with universities is crucial for knowledge economy development. This can help in developing research networks that serve as a basis for regional level business or entrepreneurship that can be in tune with global economy. In the present chapter, the authors take a case study from Jharkhand (one of the states in India) to discuss how NGOs can help in corporate education and the role of Universities to promote their activities.


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