Tag: Banking Sector

Summary-Yojana-Facilitating Financial Inclusion

FACILITATING FINANCIAL INCLUSION

Source: YOJANA – January 2018

Authors: Charan Singh and Shivakumara Reddy K

Financial inclusion is a process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups in particular, at an affordable cost, in a fair and transparent manner, by regulated mainstream institutional players. The objectives of financial inclusion include providing

Summary-Yojana-Mission Indradhanush: Revamping of Public Sector Banking in India

MISSION INDRADHANUSH: REVAMPING OF PUBLIC SECTOR BANKING IN INDIA

Source: YOJANA – January 2018

Author: D S Malik

Public Sector Banks (PSBs) play a vital role in the Indian Economy. However, due to various reasons such as delays in approvals and land acquisition, low global/domestic demand etc. the profitability of PSBs has been low. In order to overcome such issues, the government developed the ‘Indradhanush Plan’ in 2015.

Summary-Yojana-Rural Banking: Translating Vision to Reality

RURAL BANKING: TRANSLATING VISION TO REALITY

Source: YOJANA – January 2018

Author: Manjula Wadhwa

Mahatma Gandhi said that ‘India lives in villages’ and therefore, rural development in imperative for the overall development of India. Post independence, the government has taken various steps to bring rural prosperity in India through the following measures:

Summary-Yojana-Strengthening of Cyber Security

STRENGTHENING OF CYBER SECURITY

Source – YOJANA – January 2018

Author: R Subramaniakumar

Digitization is inevitable for almost every industry including the banking industry. Given the importance of financial transaction in daily lives of people, financial institutions should be at the fore-front to adopt latest technologies and to enhance customer experience thus eliminating the urban rural gap.

Summary-Yojana-Bank Recapitalization: Enhancing Capital Base

BANK RECAPITALIZATION: ENHANCING CAPITAL BASE

Source: Yojana – January 2018

Author: Ashutosh Kumar

The load of non-performing assets (NPAs) on the public sector banks (PSBs) has been adversely affecting their lending capability, which in turn is hindering private investment and private sector gross capital formation. NPAs in PSBs have grown to Rs. 7.33 crore in June 2017 increasing by three times in two years approximately.

Summary-Yojana-Managing Non-Performing Assets: A Paradigm Shift

MANAGING NON-PERFORMING ASSETS: A PARADIGM SHIFT

Source: Yojana – January 2018

Author: Deepak Narang

Banks cause money to be circulated in the economy by seeking deposits from those who have a surplus and lend for investment activity. It has a multiplier effect in the economy. Sustainable lending leads to higher Gross Domestic Product (GDP) growth.

Summary – Yojana – Protagonist To Economic Transformation

PROTAGONIST TO ECONOMIC TRANSFORMATION

Source: Yojana – January 2018

Authors: Vivek Kumar, Sanket Tandon, Shubhada Rao

2018 will see a sustained rise in banking services and therefore banking solutions and delivery would increasingly become sophisticated.

Response to Reforms:

Post liberalisation in 1991, the banking sector expanded rapidly in 2000s due to following reasons:

Summary – Yojana – Banking Sector Reforms: Ensuring Regulation

BANKING SECTOR REFORMS: ENSURING REGULATION

Source: Yojana – January 2018

Author: Atisha Kumar, Economist at NITI Aayog

Banking sector is one of the most important sources of credit in India and is important for smooth functioning of the Indian economy.

Key challenges that the banking system faces:

  1. Low financial depth i.e. lesser outreach to people.
  2. High share of non-performing assets NPAs
  3. High Concentration of Public Sector Banks (PSBs)

These issues constrain industrial credit/bank credit and bank’s ability to