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Role of banks in indian economy essay


role of banks in indian economy essay

rate of returns. Features of Bank: Money Dealing, acceptance of Deposit, grant of loan and advances, payment and withdrawal of deposits. Fiscal discipline and deficit reduction is therefore vital for Indias future prospects. With a substantial growth in IT sector, a number of foreign consumers showing interests in Indias service exports as India has got low cost, educated, highly skilled workers in abundance. The currency of the country will be flexible if the central bank of the country has the monopoly of note issue because central bank can bring about changes very early in the volume of paper money according to the needs of business, industry and messes. Without a sound and effective banking system, no country can have a health economy. The India economic policy during that time had three basic features: Autarchic trade policy. The strategy is implemented through lending, dialogue, analytical work, engagement with the private sector, and capacity building exercises.

Role of banks in indian economy essay
role of banks in indian economy essay

In this way, this bank works as an institution whose main objective is to control and regulate money supply keeping in abortion worldwide history essays view the welfare of the people. People have more confidence in the currency issued by the control bank because it has the protection and recognition of the government. To mobilise deposits schemes such as attractive Re-investment Plan, Recurring Deposit Scheme, Retirement Plan, Permanent Plan etc. Of the branches,.95 per cent (2,412) are located in the urban areas and.05 per cent (3,626) in the rural areas. From 1990s to the present times: India's economic condition in the initial stage of the 1990s was dismal. However, the British rule also developed the country to a great extent. It is carried out by financial intermediaries, which performs the functions of safeguarding deposits and providing loans to the public. The rural sector in a country like India can growth only if cheaper credit is available to the farmers for their short-and medium-term loans. The advantages of banking should be explained to the rural dwellers Who are ignorant and conservative.

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