Advantages And Disadvantages Of Regional Rural Banks

Political interference: A very obvious weakness of this system is the pressure from the political side. When an institution is not independent in making the policies it then the results would not be according to the expectations because some incompetent individual are making policies then. Undoubtedly the finance ministry should not interfere in the affairs of the State Bank. Due to the pressure of government, SBP is printing millions of notes which are a way to give more hype to

With RBI recently giving approval to 11 entities for setting up payment banks, we are now looking at stripped-down versions of banks, which are expected to reach customers mainly through their mobile phones rather than traditional bank branches.

The primary objective of this literature review is to understand the concept of Rural Markets in India, and to find out the opportunities and challenges faced by these rural markets according to the researches already conducted. The Rural Markets, as a part of the economy have been untapped and have a huge potential. The urban markets in India are saturated and even though the contribution of agricultural sector has gone down in the GDP, India still lives in her villages.

acquired branch / ATM network is unlikely to be a ‘perfect’ complement to an existing

As per the Census of India 2011, the definition of urban area is as follows;

Bank of Bannockburn, incorporated in 2009, is a medium sized bank employing about 1500 people and has 25 branches throughout the country. Its primary business is consumer banking and it also provides loans to small businesses throughout the country. Due to the small number of branches, it requires its staff to travel extensively to meet potential clients especially for business loans. The bank maintains a robust security system in terms of facility and network access throughout its corporate offices. Employees and visitors are required to wear badges at all times, network access is strictly restricted to employees only and employees are well aware of the security risks associated with their customers’ personal and financial information through the trainings they have received. The bank prides itself on having one of the best security implementations and there has not been any major security incident throughout its existence.

Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development.

Indusland Bank established in April 1994 derives its name from Indus Valley Civilisation. The bank is first among its new generation private sector bank that obtained a license in the year 1994 to drive the process of economic reforms in the post liberalisation era in India. Conceptualised by Srichand P. Hinduja, the Indusland Bank was born from his vision to use collective contributions from the worldwide as non-residents Indian (NRI) community towards social and economic development of the country.

The reserve bank of India (RBI) kick started in April 1935, its aim being to regulate the Indian currency (rupee), it is the central bank in India thus controls and regulates all financial institution including the None Banking Financial Companies (NBFC).

Indian Parliament in 2012 passed a bill know as (Banking Laws Amendment bill) which has made banking easy in India and also opened doors for the entire world. This bill states that RBI is the only body to make decisions regarding banks and it’s the responsibility of RBI to make rules for banks.

The Reserve Bank of India (RBI) is India’s central bank. Though public sector bank’s currently dominate the banking industry, numerous private and foreign banks exist. India 's government-owned banks dominate the market. Their performance has been mixed, with a few being consistent profitable. Several public sector banks are being restructured, and in some the government either already has or will reduce its ownership.

Performance of banking sector is affected by legislature and framing policies by the government. Banking activities are significantly affected by budget proposal. The dynamics of Indian Banking sector are drastically changed with securitization act. The Securitization Act has given more power to the banking sector against defaulting borrowers. Further, changes to be implemented on the issue of voting rights among private sector banks are likely to speed up the consolidation process.

The financial sector has been pertaining under pressure to the rising inflation and round the corner elections have been demanding the report card of the government. Amidst such conditions the talk about the financial sectors of the country would definitely spur a discussion on the issue of new bank licenses by the RBI. The discussions have nonetheless been hot-Why?? Well that is the part that has caused the hue and cry. The purpose that the RBI wishes or hopes to accomplish and the steps being taken is indeed speculative and doubts have been raised over the decision and what waits with it? It would either fulfill what it plans on doing or fail to fall back at the same stage as currently prevailing. A little look into what has been happening and we would be at a better position to understand the pros and cons of the whole scenario at hand.

PURPOSE – The purpose of this paper is to know the perception of the customers’ towards dimensions of E-banking between public and private banks across Accuracy, Cost Effectiveness, Efficiency, Accessibility and Easy to use.

After the nationalisation of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%.This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices.