Published On May 21, 2017
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📢Features of Mrunal's Economy Course at Unacademy:
1) 👨‍🏫 Weekly live classes @night even Working Professional can attend
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3) đź“‘ 500+ pages Rapid revision handouts, covering both Prelims & Mains, incl. Hindi translation for important terminologies. No need to purchase separate books / NCERTs.
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5) đź’¬ Weekly Doubt Solution to your queries.
- In the previous lecture we had learned about the nationalization of private banks in the post-independent India. However this nationalization created more problems than it solved, because of the politicization of the board of directors, unionism among the bank staff, high level of administered interest rates and unsustainable level of non-performing assets
- ultimately, in 1991 the committee was Constituted under the chairmanship of former RBI Governor M.Narsimhan for comprehensive banking sector reforms in India. And as per his recommendations, government reduced the control over public sector banks by gradual diluting of its shareholding, liberalized brand expansion policy and permission to open new foreign banks and private banks in India.
- The licensing of private banks in India was done in three rounds. In the first round, then private banks were given license to operate including ICICI, HDFC. In the second round, two private banks were allowed viz. Yes Bank and Kotak Mahindra. In the third round, again two private banks are allowed viz. Bandhan and IDFC.
- The total number of universal private commercial banks in India is 21. And, if IDBI is privatized then it’ll be 22.
- Now, private bank licensing was done through “rounds of notifications and applications ”, but for future RBI has issued guidelines for “On Tap” licensing system i.e. as and when you’re ready and interested, you can apply to start a commercial bank in India with minimum paid-up capital of Rs. 500 crore.
- What are the foreign investment limits in Indian commercial banks?
- Foreign commercial banks in India: branch model and subsidiary model.
- What are differential banks? How are they different from other universal commercial banks? The bottom line is that differential banks are restricted in the geographical expansion and deposit and lending operations
- in the chronological manner, we will learn about all the differential banks in India viz. 1) regional rural banks RRB (1976), 2) local area banks-LAB (1996), 3) small finance banks and payment banks (2015). And in next lecture we’ll see the latest proposed type “wholesale Banks”.
- What are the internal differences between small finance bank and payment bank- in terms of the client base, deposit and lending operations, priority sector lending requirements et cetera.
- In January 2017, two payment banks started their operations 1) Airtel 2) Indian post payment bank (IPPB). We’ll look at the logo, products and services offered by IPPB- SAFAL, SUGAM and SARAL accounts.
- In the next lecture, we’ll learn about remaining types of Banks.
Youtube Link:    • Banking Classification #2: Nationaliz... Â
- Faculty Name: You know who
- all Powerpoint available at http://mrunal.org/powerpoint
- Exam-Utility: UPSC IAS IPS Civil service exam, Prelims, CSAT, Mains, Staff selection SSC-CGL, IBPS-PO/MT, IBPS-CWE, SBI PO & Clerk, RBI and other banking exams; LIC, EPFO, FCI & other PSU exams; CDS, CAPF and other defense services exams; GPSC, MPPCS, RPSC & other State PCS services exams with Indian Economy, Budget, Banking, Public Finance in its syllabus- with descriptive questions and answer writing.
