Major Banking Reforms Of 21st Century In India
In the 21st century, the banking sector in India has undergone several major reforms. These reforms have been aimed at developing the banking sector and making it more efficient and customer friendly. Some of the major banking reforms of 21st century in India are as follows:
The banking sector in India was nationalized in the year 1969. This was done in order to bring all the banks under the control of the government and to develop the banking sector in the country. After the nationalization of banks, a number of new banks were set up and the existing ones were recapitalized. This led to an increase in the number of branches of banks and also the number of ATMs.
The next major reform in the banking sector was the introduction of the Prudential Norms in the year 1992. These norms were introduced in order to improve the functioning of the banks and to make them more efficient. The Prudential Norms were aimed at reducing the non-performing assets of the banks and also at increasing the capital adequacy ratio.
The third major reform in the banking sector was the introduction of the Know Your Customer (KYC) guidelines in the year 2005. These guidelines were introduced in order to prevent money laundering and terrorist financing. The KYC guidelines require the banks to obtain the identity proof and address proof of the customers before opening an account with them.
The fourth major reform in the banking sector was the introduction of the concept of Base Rate in the year 2010. The Base Rate is the minimum rate of interest charged by the banks on loans and advances. The Base Rate helps in transparent pricing of loans and advances by the banks.
The fifth major reform in the banking sector was the issuance of new guidelines on priority sector lending in the year 2012. These guidelines were introduced in order to ensure that the credit needs of the priority sectors are met by the banks. The priority sectors include agriculture, small-scale industry, education, housing, and others.
The banking sector in India has undergone several major reforms in the 21st century. These reforms have helped in developing the banking sector and making it more efficient and customer friendly.
10 important topics to study in “Major Banking Reforms of 21st century in India”.
1. The role of the Reserve Bank of India in the banking sector.
2. The evolution of banking in India.
3. The reforms undertaken by the Reserve Bank of India in the banking sector.
4. The financial inclusion initiatives of the Reserve Bank of India.
5. The Pradhan Mantri Jan Dhan Yojana.
6. The demonetisation of high value currency notes.
7. The Mudra Yojana.
8. The Pradhan Mantri Mudra Yojana.
9. The Common Benefits of 21st Century Banking Reforms.
10. The Swachh Bharat Abhiyan.
