Banks Managers should make judicious use of their discretionary powers in this connection. They, thus become a heavy burden on the national economic. The Government of India has now undertaken a large number of projects for the economic reconstruction of the country.
These banks play a very significant role in boosting rural economy. The banks exercise a degree of discrimination which not only ensures their own safety but which makes for optimum utilization of the financial resources of the community. We are happy to note that during the last few years more and more banks have opened their branches in the villages.
In the under-developed countries, not only is the capital stock extremely small but, as pointed out above, the current rate of capital formation is also very low.
Banks that do both jobs will go on to be successes. The people, especially in rural areas, should be assured that the money deposited in banks is entirely safe and they can withdraw it in their troubled time. To get to the stage where a bank can make money by leveraging deposited dollars as consumer loans, there needs to be millions in capital, some of which can be raised in private circles and paid back through an eventual public share offering.
Banking services should be extended to rural areas also. The review costs thousands of dollars, and the plan may be sent back with recommendations that need to be addressed for approval.
Provision of comfortable accommodation for the staff in close vicinity of a branch is also essential for its success.
In any plan of economic development, capital occupies a position of strategic importance. They are no longer merely institutions for earning maximum profits for the benefits of a few individuals.
It is only when maximum deposits are mobilised that the bank would be able to liberalise their lending policy and play a creative role in national life. A bank transaction is a time consuming affairs, causing much harassment and irritation to the clients.
Banks can generate an adequate volume of credit and conduct it along useful productive channels. If the charter is granted, the bank must be operational within a year.
Nationalization brought about a major policy shift in the working of these banks.Essay on the Role of Banking in India's Developing Economy One of the major considerations that led to the nationalization of the fourteen major commercial banks of India in was the fact that banks, in general, had been negligent of the vital priority sectors of the economy, viz., agriculture and small-scale industries.
The process of launching a commercial bank foreshadows the overall role that these banks play in the economy.
A commercial bank is basically a collection of investment capital in search of a good. Role Of Banks in Indian Economy • It is a folly for NABARD to become a Commercial Bank. It is the only institution which can handle public finance better than the government/5(22).
Article shared by. Fourteen major banks were nationalised inand some more were nationalised a few year later. Since then banks have to come to play a major role in the socio-economic life of the country. The content of this article discusses the Role of RBI in Indian Economy - India's central banking institution.
The content of this article discusses the Role of RBI in Indian Economy - India's central banking institution. CRR is the minimum amount of cash that commercial banks have to keep with the RBI at any given point in time. Banks are. Role Of Banks Financial Institutions In Economic Growth Economics Essay.
Print Reference this. it will examine the Nigerian banks and the economy, analysing its contribution to the growth of the Nigerian economy and how the different banking sector reforms have impacted on its power and conversely to the economic development of .Download