Sunday, April 13, 2014

Banks

Banks

  1. Commercial Banks
    • deals mainly with general public
    • SBI, ICICI etc.
    • RBI is the regulator
  2. Industrial Development Banks
    • target group is industries
    • provides medium/ long term finance
    • IDBI, IFCI, IIBI
    • also NABARD, SIDBI,NHB
  3. RRBs (NABARD is the regulator)
  4. Cooperative Banks
    • SCBs
    • District level or Urban based
    • PACs
Rural Banking

Players
  • Commercial Banks
  • RRBs
  • Cooperatives
  • MFIs etc.

Initiatives
  • Bank nationalization
  • Priority Sector Lending
  • RIDF (operated by NABARD)
  • RRBs on the recommendations of Narasimhan committee
  • Amalgamation of RRBs
  • Kisan Credit Card (KCC)
  • SHG-Bank Linkage
  • Banking Correspondent (BC)
  • 2006 : Interest Subvention scheme
  • Swabhimaan scheme
Financial Inclusion

Initiatives
  • 1969 : Lead Banking Scheme
  • 2005 : Basic savings account
  • 2011 : Swabhimaan (target extended in 2012 budget speech)
  • 2006 : BC
  • Ultra Small Branches (USBs)
  • Kiosk Banking is being mooted
Issues/ challenges
  • NPA
  • Capital/ Fund shortage- cannot raise fund from capital market
  • Rural banking
http://www.thehindu.com/opinion/columns/C_R_L__Narasimhan/the-elusive-quest-for-autonomy/article6996234.ece

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