Essay Topics
Types of Essays
Essay Checklist
Word Counter
Readability Score
Essay Rewriter
Indian banking system, like most banking systems in the developing countries, is characterized by the coexistence of different ownership groups-public and private. Public sector banks have passed through several stages of existence. The first stage was nationalization of Imperial Bank of India and seven banks of princely states in fifties. This led to emergence of State Bank of India and its seven associate banks. The second stage comprised the two phases of nationalization of major private banks in 1969 and 1980. Non-nationalized private and foreign banks were allowed to coexist with public sector banks. Their activities were, however, restricted through entry regulation and strict branch licensing policies. As a result, public sector banks dominated banking business, accounting for nearly 90% of the total deposits and advances in 1990-91. Non-nationalized private and foreign banks shared the residual of 10%. There were 27 public sector banks, 23 private banks and 23 foreign banks in operation in India in 1990-91. They were all subject to the central bank (RBI) regulation. In 1991-92, RBI launched major banking sector reforms aiming at creating a more profitable, efficient and sound banking system. Based on the recommendations of the Narasimham committee on financial sector reforms, these reforms sought to make the banking system more responsive to changes in market conditions. As a result, the era of deregulation of entry, branch licensing and interest rates dawned upon Indian banking industry in the form of privatization and modernization. This led to the following: 1. Permission to the public sector banks to raise 49% of their equity in the capital market. 2. Entry of 6 private banks, mostly promoted by government owned institutions, and 3 foreign banks in the Indian banking industry in 1994-95. 3. Higher profitability to banks through gradual reduction in cash reserve ratio (CRR) and statutory liquidity ratio (SLR). 4. Strengthening of banking system through the institution of the Bank of International Settlements (BIS) norm of 8% capital adequacy ratio in addition to stringent income recognition and provisioning norms. 5. Creation of level playing field between domestic and foreign banks. 6. Requirement, from the foreign banks, to earmark 32% of their total credit to the priority sector in India with effect from 1993. Prior to the reforms, they were exempted from such requirement while all the domestic banks, whether public or private, were, by contrast, required to earmark 40% of their total credit in this fashion. Disinvestment in public sector banks and deregulation of Indian banking industry as a whole have increased competition in the banking industry through increased private participation. Privatization of Indian banking industry coupled with information technology revolution in India in general has modernized Indian banking with higher competitiveness. RBI's Monetary and Credit Policy (2003-04) provides an insight into the current developments and prospective technology up-gradation in Indian financial sector. The Central Bank has assigned priority to up-gradation of technology in the financial sector. Substantial progress has been made for developing a modern, efficient, integrated and secure payment and settlement system in financial sector. Modernization of clearing and settlement through MICR (Magnetic Ink Character Recognition) based cheque clearing, popularization of electronic clearing services (ECS) and integration of RBI-EFT scheme with electronic funds transfer (EFT) schemes, introduction of centralized funds management system (CFMS) are significant milestones in this regard. Real Time Gross Settlement (RTGS) environments improve the effectiveness of asset- liability management. Core Banking System (CBS) and Cheque Truncation System (CTS) are two recent most developments in multi-city banking that replace the existing system of remittances that cost time and money.
Essay Writing Checklist
The following guidelines are designed to give students a checklist to use, whether they are revising individually or as part of a peer review team.
Introduction
  • Is the main idea (i.e., the writer's opinion of the story title) stated clearly?
  • Is the introductory paragraph interesting? Does it make the reader want to keep on reading?
Body Paragraph
  • Does each body paragraph have a clear topic sentence that is related to the main idea of the essay?
  • Does each body paragraph include specific information from the text(including quoted evidence from the text, if required by the instructor)that supports the topic sentence?
  • Is there a clear plan for the order of the body paragraphs (i.e., order of importance, chronology in the story, etc.)?
  • Does each body paragraph transition smoothly to the next?
Conclusion
  • Is the main idea of the essay restated in different words?
  • Are the supporting ideas summarized succinctly and clearly?
  • Is the concluding paragraph interesting? Does it leave an impression on the reader?
Overall Essay
  • Is any important material left unsaid?
  • Is any material repetitious and unnecessary?
  • Has the writer tried to incorporate "voice" in the essay so that it has his/her distinctive mark?
  • Are there changes needed in word choice, sentence length and structure, etc.?
  • Are the quotations (if required) properly cited?
  • Has the essay been proofread for spelling, punctuation, grammar, etc.?
  • Does the essay have an interesting and appropriate title?
Essay on the Privatization and Modernization of the Indian Banking System
Trending Essay Topics
Reference
Feel free to use content on this page for your website, blog or paper we only ask that you reference content back to us. Use the following code to link this page:
Terms · Privacy · Contact
Essay Topics © 2019

Essay On The Privatization And Modernization Of The Indian Banking System

Words: 567    Pages: 2    Paragraphs: 12    Sentences: 36    Read Time: 02:03
Highlight Text to add correction. Use an editor to spell check essay.
              Indian banking system, like most banking systems in the developing countries, is characterized by the coexistence of different ownership groups-public and private. Public sector banks have passed through several stages of existence.
             
              The first stage was nationalization of Imperial Bank of India and seven banks of princely states in fifties. This led to emergence of State Bank of India and its seven associate banks. The second stage comprised the two phases of nationalization of major private banks in 1969 and 1980. Non-nationalized private and foreign banks were allowed to coexist with public sector banks.
             
              Their activities were, however, restricted through entry regulation and strict branch licensing policies. As a result, public sector banks dominated banking business, accounting for nearly 90% of the total deposits and advances in 1990-91.
             
              Non-nationalized private and foreign banks shared the residual of 10%. There were 27 public sector banks, 23 private banks and 23 foreign banks in operation in India in 1990-91. They were all subject to the central bank (RBI) regulation.
             
              In 1991-92, RBI launched major banking sector reforms aiming at creating a more profitable, efficient and sound banking system. Based on the recommendations of the Narasimham committee on financial sector reforms, these reforms sought to make the banking system more responsive to changes in market conditions.
             
              As a result, the era of deregulation of entry, branch licensing and interest rates dawned upon Indian banking industry in the form of privatization and modernization. This led to the following:
             
              1. Permission to the public sector banks to raise 49% of their equity in the capital market.
             
              2. Entry of 6 private banks, mostly promoted by government owned institutions, and 3 foreign banks in the Indian banking industry in 1994-95.
             
              3. Higher profitability to banks through gradual reduction in cash reserve ratio (CRR) and statutory liquidity ratio (SLR).
             
              4. Strengthening of banking system through the institution of the Bank of International Settlements (BIS) norm of 8% capital adequacy ratio in addition to stringent income recognition and provisioning norms.
             
              5. Creation of level playing field between domestic and foreign banks.
             
              6. Requirement, from the foreign banks, to earmark 32% of their total credit to the priority sector in India with effect from 1993. Prior to the reforms, they were exempted from such requirement while all the domestic banks, whether public or private, were, by contrast, required to earmark 40% of their total credit in this fashion.
             
              Disinvestment in public sector banks and deregulation of Indian banking industry as a whole have increased competition in the banking industry through increased private participation.
             
              Privatization of Indian banking industry coupled with information technology revolution in India in general has modernized Indian banking with higher competitiveness. RBI's Monetary and Credit Policy (2003-04) provides an insight into the current developments and prospective technology up-gradation in Indian financial sector.
             
              The Central Bank has assigned priority to up-gradation of technology in the financial sector. Substantial progress has been made for developing a modern, efficient, integrated and secure payment and settlement system in financial sector. Modernization of clearing and settlement through MICR (Magnetic Ink Character Recognition) based cheque clearing, popularization of electronic clearing services (ECS) and integration of RBI-EFT scheme with electronic funds transfer (EFT) schemes, introduction of centralized funds management system (CFMS) are significant milestones in this regard.
             
              Real Time Gross Settlement (RTGS) environments improve the effectiveness of asset- liability management. Core Banking System (CBS) and Cheque Truncation System (CTS) are two recent most developments in multi-city banking that replace the existing system of remittances that cost time and money.
Economics Essay Finance Essay 
Tip: Use our Essay Rewriter to rewrite this essay and remove plagiarism.

Add Notes

Have suggestions, comments or ideas? Please share below. Don't forget to tag a friend or classmate.
clear
Formatting Help
Submit
Sitemap