Functions of Scheduled Commercial Banks explained
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,…
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Reform of the Banking Sector, Present Status of Banking System
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…
Read article Narashimham Committee on banking system in India
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…
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Evolution of Financial system: Phase I, Phase II and Phase III in India
(The India Financial System falls into 3 different phases: Phase I: Pre-1951 organisation, Phase II: 1951 to Mid-eighties organisation, Phase III: Post-Nineties Organisation) The evolution of the financial system in India may be divided into three broad phases: (I) the traditional phase (Pre 1951 organisation,) (II) the transitional phase (1951 to Mid-eighties organisation,) and (iii)…
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What is a financial System?
A financial system is a network of financial institutions – such as insurance companies, stock exchanges, commercial banks, etc. The financial system of a country plays a dynamic role in economic development by encouraging both savings and investment. The system operates at national and global levels. Though they are not the same across the…
Do you know how electronic gold receipts (EGR) are traded through Gold Exchange in India?
The Union Budget 2023’s proposal to allow the conversion of physical gold into Electronic Gold Receipts is a significant move to promote electronic gold in the market. The Gold Exchange is a national platform for buying and selling Electronic Gold Receipt (EGR). It is a separate segment for exchange for underlying standardized gold. EGR is…
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