Essay on indian banking system

Essay on indian banking system

This was indeed a welcome development. At the close of , the Bank had offices in India. During the Second plan, however, it rose to a maximum of Rs. Government ownership gave the public implicit faith and immense confidence in the sustainability of public sector banks. A major purpose of training and development is to remove performance deficiencies, whether current or anticipated inability of an employee to perform at the desired level. There is no doubt that the smallness of the per head deposits was caused more by the lack of banking facilities than by the poverty of the country. Increasing number of multinational banks got their branches or subsidiaries opened globally. It provided remittance facilities to the public and banks at Government controlled rates. In the recent past, the RBI has taken multiple steps to support electronification of payment instruments such as, establishing National Payments Corporation of India NPCI to act as an umbrella institution for all the retail payment systems, regulation and promotion of acceptance channels including ATMs, POS and payment gateway policy guidelines for issuance and operation of pre-paid payment instruments etc. Observation means exactly what it sounds. Services are displayed in a menu by banks. Issuing letters of credit, travellers cheque, etc. The Provincial committees issued their reports in , and the central committee in During , the bank persued a vigorous policy of opening new branches, especially at places which had no banking office before.

Granting of loans and advances to small and marginal farmers, agricultural workers, co-operative societies including agricultural marketing societies and primary agricultural credit societies for agricultural purposes or agricultural operations or related purposes.

If we expect the performance of high level from our employees we must train them. The banks are looking for new ways not only to attract but also to retain the customers and gain competitive advantage over their competitors.

banking system in india

An overview of the system is given below for ready reference. These bankers could not, however, develop the system of obtaining deposits regularly from the public and those, who made savings, either hoarded or lent them to friends and neighbours.

Essay on indian financial system

Population-wise data regarding deposits and advances for the year indicates that while the rural centres contributed 3. It can give a feeling of personal achievement and broaden opportunities for career progression. They, therefore, recommended that the Imperial Bank, with its vast net work of branches, should attend to its essential task of providing facilities in the country. Conducting an effective assessment ensures that training is the appropriate solution to a performance deficiency. Able people may grow to a point where they are ready for responsibilities beyond their initial assignment. Generally speaking, the period was characterised by a very slow development of banking and banking habits. Under the Reserve Bank Act, the Reserve Bank was set up as a private share-holders bank with a share capital of rupees 5 crores, divided into fully-paid shares of Rs. Central Co-operative Banks: Central co-operative banks operate at the district level having some of the primary credit societies belonging to the same district as their members. The second phase of reforms target the three interrelated issues viz. It was, however, in the last decade that they made a substantial gain in their deposits.

The boom during the later part of First World War and immediately thereafter led to the establishment of a number of new banks, some especially for financing industries. Central Co-operative Banks: Central co-operative banks operate at the district level having some of the primary credit societies belonging to the same district as their members.

Efforts are being put in to give a satisfactory service to customers.

Opportunities of banking sector in india essay

Similarly, the deposits per head in India come to a little over 10 Shillings as against in Germany, in Switzerland, in England and in U. This bank, established as a private corporation, was expected, among other things, to facilitate the remittance of funds from the districts to the capital and to assist in stabilising inland exchange. The deficiency of capital made these banks wholly dependent upon deposits for conducting their business. Indians were not only denied senior appointments but also did not get the accommodation to which their assets entitled them. The general superintendence of the affairs and business of the bank was entrusted to a Central Board of Governors which dealt with matters of general policy while the Local Boards, established at Calcutta, Bombay, and Madras, had power to deal with the ordinary day to day business in their respective territories. Being long and well established and enjoying good reputation, they attracted deposits at cheap rates and could often under-bid the Indian banks by quoting lower lending rates What is more, these banks, through their influence in the Clearing Houses of the principal Indian financial centres, kept the Indian banks out of these houses for as long as they could and this exclusion adversely affected their reputation. Customers in urban India no longer want to wait in long queues and spend hours in banking transactions. Robert Richards submitted a scheme for a bank, owned jointly by the Government and the public, more as a means to pay off the then large public debt than with the object of deriving the usual benefits of a Central Bank.

The size and importance of the gaps can then be compared to inform the decisions. It began to be felt that a close union of British and Indian interests could be ensured if the Presidency Banks could unite into a single bank and open a branch in London.

Essay on business and banking sector

Today, Indian banking industry is enriched both in terms of offering value added services and delivering quality service. These were the causes of the failure of mostly the small banks which had rapidly sprung up after It attempts to improve their performance on the current job or prepare them for an intended job, Development is a related process. The remaining assets were to consist of rupee coin, Government of India rupee securities, bills of exchange and promissory notes. Their failure did much to weaken public confidence in Indian joint-stock banking and thus gave considerable set-back to banking development in India. H2: Green banking will increase the fund for environmental activities. Total credit limits sanctioned by the State Bank to all types of co-operative institutions stood at Rs. Banks, having their head offices and branches in West Punjab, were hit hard for they could not transfer their assets to the Indian Union. The trade was largely controlled and command over foreign exchange severely limited. They enabled Europeans to earn extra profits in the shape of brokerage on goods sold and purchased, freight and insurance charges.

Thus, far from supplementing the resources available for lending in rural areas, the operations of commercial banks resulted in a diversion of resources mobilised in the rural areas to the urban sector.

In order to be able to pay the high rates of interest on deposits, large sums were locked up in speculative dealing in silver, pearls, and other commodities.

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Indian Banking Industry essays