Banking and Finance Sector in India

The Indian money market is classified into the organised sphere of influence, comprising private, universe and foreign owned commercial bounds and cooperative entrusts, together know as scheduled banks, and the unorganised sector, which includes individual or family owned indigenous bankers or money lenders and non-banking financial companies.[83] The unorganised sector and micro belief be still preferred over traditional banks in rural and sub-urban areas, especially for non-productive purposes, like ceremonies and short duration loans.[84] elevation Minister Indira Gandhi nationalised 14 banks in 1969, followed by six others in 1980, and made it mandatory for banks to provide 40% of their net credit to priority sectors like agriculture, small-scale industry, retail trade, small businesses, and so on to ensure that the banks fulfill their social and developmental goals. Since then, the number of bank branches has gaind from 8,260 in 1969 to 72,170 in 2007 and the population covered by a branch decreased from 63,800 to 15,000 during the same period. The tot up bank deposits increased from 5,910 crore (US$1.18 billion) in 197071 to 3,830,922 crore (US$764.27 billion) in 200809.

Despite an increase of rural branches, from 1,860 or 22% of the total number of branches in 1969 to 30,590 or 42% in 2007, only 32,270 out of 500,000 villages are covered by a scheduled bank.[85][86] Indias gross domestic help saving in 200607 as a percentage of gross domestic product stood at a high 32.7%.[87] More than half of personalised savings are invested in physical assets such as land, houses, cattle, and gold.[88] The public sector banks hold over 75% of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.[89] Since liberalisation, the government has approved operative banking reforms. While some of these relate to nationalised banks, like encouraging mergers, reduction government interference and increasing profitability and competitiveness, other reforms hand over opened up... If you want to get a full essay, company it on our website: Orderessay

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