A New Approach to the Study of Banks and Banking in India
Dr Fazalahmed B Khan and Qanita Khan
  • ISBN 13 : 9789356932302
  • year : 2023
  • language : English
  • binding : Hardbound
Banking system is called the lifeblood of an economy. Banking as a discipline has evolved over the centuries the world over, forming its theories and principles, methodologies, rules of business and developing its practices of high technology, soundness and prudence. Origin of banking has its genesis in India in the 18th century, when seven banks were established between 1720 and 1788. The 19th century saw addition of more banks and entry of a few foreign banks. For long (till 1960s), banks had a vulnerable existence, as failure of banks was not uncommon. Now, they are on sound footings. Establishment of the Reserve Bank of India in 1934, as the central bank of the country was a milestone. The enactment of the Banking Regulation Act, 1949 made for orderly development of banking. Nationalisation of major banks in 1969 and 1980 was a watershed development which brought about a transformative phase making for meeting the credit needs of the varied sectors of the economy, expanding outreach of banks far and wide and aid financial inclusion. The public sector banks played their role remarkably. The recommendations of the Narasimham Committee on Financial System (1991) and on the Banking Sector Reforms (1998) resulted into wide reforms in the banking sector in India. New private banks (from 1994 onwards) have brought a spirit of competition and vibrancy. Banking technology has developed remarkably well. Co-operative banks have their vast network. From 2010 to 2020, India witnessed a revolution of payment and settlement systems with digital technologies. Setting up of Development Finance Institutions differentiated banks in the form of Local Area Banks, Small Finance Banks and Payments Banks have been valued additions. Two brilliant facts and figures showcasing the growth of banks in India are as under: (a) In 1952, there were just 4061 branches of scheduled commercial banks in India, which rose to 1,50,248 branches by the end of 2020-21 with 2,38,558 ATMs and 11,90,425 banking outlets through Banking Correspondents. (b) In 1952, the total deposits and credits of all scheduled commercial banks were Rs. 882 crore and Rs. 547 crore respectively. By the end of FY 2020, they rose to (Deposits) Rs. 1,55,90,600 crore and (Credit) Rs. 1,08,20,208 crore respectively. All these make for an amazing story of the progress of banks and banking in India. It can be aptly said that banking in India is now new age banking. This book is an attempt to capture this glorious story – the origin and development of banking in India with all its vivacity, its challenges and achievements, its issues as well as its successes. It elaborates this narrative in a simple and lucid style, supported by statistics from authentic sources; mostly from the vast database that the Reserve Bank of India has kept on placing in the public domain. Contents - 1. Indian Financial System 2. Money 3. Banks and Banking 4. Banks and Banking in India 5. Ratios/Terms Used in Banking in India 6. Origin and Development of Banks in India – Part I (Inception to 1947) 7. Origin and Development of Banking in India – Part II (1947 to 1968) 8. Origin and Development of Banking in India – Part III (Nationalisation of Major Commercial Banks in 1969 and Other Developments till 1990) 9. Origin and Development of Banking in India – Part IV (1990 Onwards) 10. Banking Legislation in India 11. Government Control over Banks 12. Reserve Bank of India 13. Development Finance Institutions 14. Nationalisation of Major Commercial Banks in 1969 and 1980 15. Public Sector Banks – Heritage List (Position as in 2016-17) 16. Recapitalisation and Revamping Public Sector Banks and Reforms 17. Merger and Amalgamation of Public Sector Banks 18. Public Sector Banks (Their Performance during 2020-21) 19. Merger and Amalgamation of Private Banks 20. Old Private Sector Banks 21. New Private Sector Banks 22. Public Sector Banks and Private Sector Banks – A Comparison and Competition 23. Foreign Banks 24. Cooperative Banks in India 25. Regional Rural Banks 26. Local Area Banks 27. Small Finance Banks 28. Payments Banks 29. Universal Banks 30. Support/Allied Institutions of Banking 31. Bank Deposit Insurance in India 32. Payment and Settlement Systems 33. Lending Rate, Bank Rate, Repo Rate and Reverse Repo Rate 34. Customer Relations by Banks 35. Basel Norms – Basel I, II and III 36. Banking Technology, FinTech 37. Financial Inclusion through Banks, Jan-dhan Yojana, Banking Correspondents, etc. 38. Cheque Clearance 39. Frauds in Banks and Banking 40. Non-performing Assets 41. Some Prominent Features and Operational Matters of Banking 42. International Forums on Finance and Banking 43. Ten Best Global Banking Practices About the Author: Fazalahmed B Khan is a Bachelors in Economics and LL.B. from Mumbai University. He retired in 2009, as Deputy Secretary in the Urban Development Department, Government of Maharashtra. During his long service with the Government, he also handled co-operative credit and institutional finance. Since his academic years, he had keen interest and acquired deep knowledge in the field of Banking and Finance. He is also the author of other legal books including One Hundred Amendments of the Constitution of India (NBT, I). Qanita Khan is a Bachelors in Psychology and MMS from Mumbai University. After completing her MMS, she started her career with DBS Bank, Mumbai wherein she honed her skills in the banking industry. Thereafter, she got an opportunity to become the Assistant Director at the World Trade Centre, which opened her doors to the world of trade promotions and marketing. Her keen interest in banking and insurance got her important positions in finance companies and insurance broking houses. Currently an independent risk and wealth management advisor, she partners with leading risk management and investment companies in the Indian and global market.