3/26/2014 Banking Sector Reforms FULL REPORT - 1:Commerce Seminar Topics

http://seminarprojects.net/t-banking-sector-reforms-full-report 1/2
Current time: 26-03-2014, 07:45 AM
Threaded Mode | Linear Mode
13-05-2011, 12:15 PM Post:
? Q
Enter Keywords Search Thread
Post Reply Thread Rating:
Hello There, Guest! Login Register)
Home New Seminars & Projects Search Member List Calendar Help Open Buddy List
View New Posts | View Today's Posts
Seminar Topics & Proj ect Ideas | Seminar Topics And Discussion | Miscellaneous Seminar Topics | Commerce Seminar Topics / Banking Sector Reforms FULL REPORT
Search
Banking Sector Reforms FULL REPORT
seminar class
SP Deserved Member
Posts: 5,361
Joined: Feb 2011
Banking Sector Reforms FULL REPORT
[attachment=13734]
HISTORY OF BANKING
Before we look into the knitty-gritty of banking sector reforms process, we must have a proper perspective of what is the history of our banking system in India
and also understand the rationale of why reform is necessary and what reforms are essential. Like in many other aspects, India had a long tradition of banking.
Evidence regarding the existence of money-lending operations in India is found in the literature of the Vedic times, i.e., 2000 to 1400 B.C. The literature of the
Buddhist period, for e.g., the Jatakas, and recent archaeological discoveries supply evidence of the existence of sresthis, or bankers. From the laws of menu, it
appears that money-lending and allied problems had assumed considerable importance in ancient India.
What were the interest rates? They were prescribed by almost all Hindu law-givers, Manu, Vasistha, Yajnavalkya, Gautama, and Baudhayana as also Kautilya. A
common base number was 15 per cent annum what the banker-economist Dr. Thingalaya calls Hindu rate of interest. Incidentally, this is close to current Prime
Lending Rate (PLR) of many banks. However, Chanakya gives a different approach. The interest works out for 15 per cent annum for general advances. The
traders are charged a rate of 60 per cent per annum. Where the merchandise has to pass through forests, the traders have to pay 120 per cent while those
engaged in the export-import business handling sea-borne cargo have to pay 240 per cent per annum. Chanakyas interest rate structure is risk-weighted; the
rate of interest increases with the risk involved in the borrowers business. Again, it is not everyone who could take up banking business. The
Dharmashastra laid down the rates according to the castes of the borrowers, and the eligibility of men belonging to Vaishya caste alone could take up the
money-lending profession. In other words, in ancient times, your caste gives you license to banking; not RBI!!!
Banking Sector Reforms
.INTRODUCTION TO THE TOPIC
As the real sector reforms began in 1992, the need was felt to restructure the Indian banking industry. The reform measures necessitated the deregulation of
the financial sector, particularly the banking sector. The initiation of the financial sector reforms brought about a paradigm shift in the banking industry. In
1991, the RBI had proposed to form the committee chaired by M. Narasimham, former RBI Governor in order to review the Financial System viz. aspects relating
to the Structure, Organisations and Functioning of the financial system. The Narasimham Committee report, submitted to the then finance minister, Manmohan
Singh, on the banking sector reforms highlighted the weaknesses in the Indian banking system and suggested reform measures based on the Basle norms. The
guidelines that were issued subsequently laid the foundation for the reformation of Indian banking sector.
The main recommendations of the Committee were: -
Reduction of Statutory Liquidity Ratio (SLR) to 25 per cent over a period of five years
Progressive reduction in Cash Reserve Ratio (CRR)
Phasing out of directed credit programmes and redefinition of the priority sector
Banking Sector Reforms
Deregulation of interest rates so as to reflect emerging market conditions
Stipulation of minimum capital adequacy ratio of 4 per cent to risk weighted assets by March 1993, 8 per cent by March 1996, and 8 per cent by those banks
having international operations by March 1994
Adoption of uniform accounting practices in regard to income recognition, asset classification and provisioning against bad and doubtful debts
Imparting transparency to bank balance sheets and making more disclosures
Setting up of special tribunals to speed up the process of recovery of loans
Setting up of Asset Reconstruction Funds (ARFs) to take over from banks a portion of their bad and doubtful advances at a discount
Restructuring of the banking system, so as to have 3 or 4 large banks, which could become international in character, 8 to 10 national banks and local banks
confined to specific regions. Rural banks, including RRBs, confined to rural areas
Abolition of branch licensing
Liberalising the policy with regard to allowing foreign banks to open offices in India
Rationalisation of foreign operations of Indian banks
Giving freedom to individual banks to recruit officers
Banking Sector Reforms
Inspection by supervisory authorities based essentially on the internal audit and inspection reports
Ending duality of control over banking system by Banking Division and RBI
A separate authority for supervision of banks and financial institutions which would be a semi-autonomous body under RBI
Revised procedure for selection of Chief Executives and Directors of Boards of public sector banks
Obtaining resources from the market on competitive terms by DFIs
Speedy liberalisation of capital market
Next Oldest | Next Newest
3/26/2014 Banking Sector Reforms FULL REPORT - 1:Commerce Seminar Topics
http://seminarprojects.net/t-banking-sector-reforms-full-report 2/2
View a Printable Version
Send this Thread to a Friend
Subscribe to this thread
Post Reply
Marked Categories : banking reforms in india ppt, project on banking sector reforms in india, reforms on banking sector in india, narasima comittee
ppt, narasimham committee ppt, financial sector reforms in banking sector in 2011, breakthroughs in indian banking industry ppt, importance of
banking sector reforms, abstract for banking services in india 2011, financial sector reforms in india 2011 ppt, project report on financial sector
reforms in india, report on banking sector reforms, banking sector reforms in india 2011, experts view on banking sector in india 2011 doc, banking
sector reforms, reforms in banking sector in india ppt, banking sector reforms in india 2011ppt,
Quick Reply
Message
Type your reply to this message here.
Signature
Disable Smilies
Image Verification
(case insensitive)
Please enter the text within
the image on the left in to
the text box below. This
process is used to prevent
automated posts.
Post Reply Preview Post
Possibly Related Threads...
Thread: Author Replies: Views: Last Post
FUNCTIONS OF INVESTMENT BANKING smart paper boy 0 1,014
06-08-2011 02:50 PM
Last Post: smart paper boy

Implementation of Core Banking Systems(CBS) in the Banks:
Special
smart paper boy 0 1,393
22-06-2011 04:50 PM
Last Post: smart paper boy
Banking Sector Reforms full report seminar class 0 1,538
04-06-2011 10:49 AM
Last Post: seminar class
INVESTMENT IN EQUITIES full report seminar class 0 1,368
14-05-2011 11:07 AM
Last Post: seminar class
Banking seminar surveyer 0 889
22-12-2010 11:52 AM
Last Post: seminar surveyer
Co-operative Banking in a Competitive Business Environment seminar surveyer 0 1,511
04-10-2010 01:12 PM
Last Post: seminar surveyer
TRADE UNION MOVEMENT IN INDIA (Download Full Report And
Abstract)
computer science
crazy
0 5,997
22-02-2009 01:15 AM
Last Post: computer science crazy
Islamic Banking mcr 0 1,128
20-02-2009 09:23 AM
Last Post: mcr
Contact Us | Seminar Topics & Project Ideas | Return to Top | Return to Content | Lite (Archive) Mode | RSS Syndicationtop names for boys
Powered By MyBB, 2002-2014 About Me || New Seminar Topics & Project Topics
Current time: 26-03-2014, 07:45 AM