The Industrial Credit and Investment Corporation of India (ICICI), the first development finance institution in the private sector, came to be set up in January 1955, with the backing and funding of the World Bank. The primary objective of ICICI was to develop small and medium industries in the private sector. After the merger of…
Reserve Bank of India updated the Master Circular on priority sector lending on June 21, 2024, incorporating the following updated instructions/guidelines on priority sector lending(PSL)-target and classification. This is to address regional disparities in the flow of priority sector credit at the district level, it was decided to rank districts based on per capita credit…
The banks in India were governed under the provision of the Indian Companies Act 1913. The act was found inadequate and unsatisfactory to regulate banking companies in India. Many banks have failed due to inadequacy of capital and a need was felt to prescribe a minimum capital requirement for banks. As there was no licensing…
The 53rd GST Council meeting was held on Saturday. Mrs.Nirmala Sitharaman Union Finance Minister presided over the meeting. “Our intent is to make GST assessees’ lives easier, simpler and less cumbersome… We are working towards less and less compliance,” Union finance minister Nirmala Sitharaman, chairperson of the body, told reporters after the council’s 53rd meeting…
The Sub-Group on Housing Finance for the Seventh Five Year Plan (1985-90) identified the non-availability of long-term finance to individual households on any significant scale as a major lacuna impeding the progress of the housing sector and recommended the setting up of a national-level institution. Although housing is primarily a State subject, the Central govt.…
(RBI Act 1934 comprises various sections, the important sections of the act are mentioned in this post) The Reserve Bank of India the Central Bank of India, was set up based on the recommendations of the Hilton Young Commission in 1935 as a private bank with the enactment of the RBI act 1934. The Reserve…
Banking is a system of financial institutions, such as scheduled Commercial banks, Local Area Banks, Regional Rural banks, cooperative Banks, Payment Banks, and small finance banks that provide various financial services to individuals, businesses, and governments. Let us study them here one by one. Local Area Banks (LABs): Local area banks are referred to as…
Section 5(b) of the Banking Regulation Act, 1949, provides “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise. Banking is a system of financial institutions, such as scheduled Commercial banks, Local Area Banks,…
The introduction of reforms in the banking sector was based on the commendations of different committees such as the First Narasimham Committee- 1991, the Verma Committee – 1996, the Khan Committee – 1997, the Second Narasimham Committee – 1998, etc. The government of India and RBI have navigated the banking crises in India using both…
Post 1991 economic crisis in India, it was felt that banks had a crucial role to play in the economy and that banks in India were not performing efficiently. The Government took several steps to remodel the country’s financial system. For that, Dr.Manmohan Singh, then finance minister, initiated revamping the banking sector in India. A…
