>GreenC bot at 17:12, 24 January 2021

2021-01-24T17:12:24Z

New page

{{EngvarB|date=May 2014}}
{{Use dmy dates|date=May 2014}}

More than half of personal savings are invested in physical assets such as land, houses, cattle, and gold.<ref>{{cite web|url=http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN028982.pdf|title=Reforming India's Financial System|author1=Diana Farrell |author2=Susan Lund }}</ref>

The Indian [[money market]] is classified into: the organised sector (comprising private, public and foreign owned [[commercial bank]]s and [[cooperative]] banks, together known as ''scheduled banks''); and the unorganised sector (comprising individual or family owned indigenous bankers or [[Moneylending|money lenders]] and [[non-banking financial company|non-banking financial companies]] (NBFCs)). The unorganised sector and [[microcredit]] are still preferred over traditional banks in rural and sub-urban areas, especially for non-productive purposes, like ceremonies and short duration loans.<ref name="Datt-6">{{cite book |author1=Datt, Ruddar |author2=Sundharam, K.P.M. | title=Indian Economy | pages = 847–850 | chapter = 50}}</ref>

Prime Minister [[Indira Gandhi]] [[nationalisation|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, etc. to ensure that the banks fulfill their social and developmental goals. Since then, the number of bank branches has increased from 10,120 in 1969 to 98,910 in 2003 and the population covered by a branch decreased from 63,800 to 15,000 during the same period. The total [[Bank deposit|deposits]] increased 32.6 times between 1971 and 1991 compared to 7 times between 1951 and 1971. Despite an increase of rural branches, from 1,860 or 22% of the total number of branches in 1969 to 32,270 or 48%, only 32,270 out of 500,000 villages are covered by a scheduled bank.<ref name="Datt-7">{{cite book|author1=Datt, Ruddar |author2=Sundharam, K.P.M.|title=Indian Economy|pages=850–851|chapter=50}}</ref><ref name="ghosh">{{cite web|author=Ghosh, Jayati|title=Bank Nationalisation: The Record|work=Macroscan|url=http://www.macroscan.com/cur/jul05/cur210705Bank_Nationalisation.htm|access-date=5 August 2005|url-status=dead|archive-url=https://web.archive.org/web/20051023070928/http://www.macroscan.com/cur/jul05/cur210705Bank_Nationalisation.htm|archive-date=23 October 2005|df=dmy-all}}</ref>

Since liberalisation, the government has approved significant banking reforms. While some of these relate to nationalised banks (like encouraging mergers, reducing government interference and increasing profitability and competitiveness), other reforms have opened up the banking and insurance sectors to private and foreign players.<ref name="Datt-8">{{cite book|author1=Datt, Ruddar |author2=Sundharam, K.P.M.|title=Indian Economy|pages=865–867|chapter=50}}</ref><ref name="CIA">{{cite web|url=https://www.cia.gov/the-world-factbook/countries/india/|title=CIA - The World Factbook - India|date=20 September 2007|publisher=[[Central Intelligence Agency]]|access-date=2 October 2007}}</ref>

As of 2007, banking in India is generally mature in terms of [[supply and demand|supply]], product range and reach-even, though reach in rural India still remains a challenge for the private sector and foreign banks.<ref name="khurana">Nishtha Khurana
[http://www.boeckler.de/pdf/v_2007_10_26_khurana.pdf Crisis Prevention and Capital Controls in India] boeckler.de, Retrieved on- October 2007</ref> In terms of quality of assets and [[Financial capital|capital]] adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies of Asia.<ref name="khurana"/> The [[Reserve Bank of India]] is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the [[Indian Rupee]] is to manage volatility but without any fixed exchange rate.<ref>Rajesh Chakrabarti [http://www.isb.edu/faculty/rajeshchakrabarti/FX_Basu.pdf Foreign Exchange Markets] isb.edu Retrieved on- February 2008</ref>

==Insurance==
{{main|Insurance in India}}

==See also==
[[Bombay Stock Exchange]]

==References==
{{commons category|Finance in India}}
{{reflist}}

==External links==
* https://web.archive.org/web/20101219113959/http://rbi.org.in/
* http://data.worldbank.org/
* http://www.nseindia.com/

[[Category:Finance in India| ]]

Finance in India - Revision history

>GreenC bot at 17:12, 24 January 2021