Sunday, 29 July 2018

Indian Bank System and Improvements

                                                   Indian Bank System and Improvements


Money Indian Economy

 Banks can be divided into two groups.

 1) Scheduled Bank

 2) Non-scheduled Bank


1) Scheduled Bank:

In this, banks come in which the second Schedule of Reserve Bank of India Act 1934 has been scheduled.

2) Non-scheduled Bank:

These banks are not included in the second schedule of the Reserve Bank's Act.


Banks can be classified on the basis of ownership

1) Public Sector Banks:

a) State Bank of India
b) 19 nationalized banks
c) Regional Rural Bank

2) Private sector banks

!) Indicator Stock Bank in India
!) Foreign Bank


Banking Improvement Committees:

1) Verma Committee:

The Reserve Bank of India constituted the Verma Committee for the purpose of revival of the weakening public sector banks. Committee submitted its report on October 4th, 1999. According to the committee's recommendation, such strategies should be used to revive the weak banks (Uco Bank, Indian Bank, United Bank of India), which will increase the profit of these banks and reduce the cost of management.

2) Narasimhan Committee:

Narasimhan Committee  was formed to suggest banking reform. This committee gave its report in 23 april 1998. Earlier  suggesting a full improvement in the financial sector the committee was constituted under the chairmanship of Narasimhan. At that time, the Indian Finance Minister Dr. Manmohan Singh was there. Then again While P. Chidambaram was finance minister, a committee headed by Narasimhan was formed to improve banking sector.

3) Damodharan Committee:

Former president of SEBI  S.Damodhran Committee  submitted its report to 2011. This committee has suggested the following important recommendations in the banking sector.

1) Minimum balance can be canceled within the savings bank account for check book and ATM facilities.

2) Facilities like passbook print should be provided free of charge to the account holders.

3) Fix diposit should not be renewed without the consent of the account holder and without any written consent.

4) Insurance cover with savings account should be increased from 1 lakh to 5 lakh.

5) After expiry of the home loan, the property documents should be given within 15 days to the owner of the property.

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