DMPQ- . Indian banking sector is going through tough phase. Suggest some major areas of reforms in Indian banking sector.

  • Liberal entry of private sector and foreign banks. It is as a part of the reforms that today there are big private banks such as ICICI, HDFC, Axis and foreign banks such  as the Citi group, HSBC, Barclays operating along with the public sector banks.
  • Public sector were provided greater autonomy to function in a competitive environment and frame independent policies based on broad framework provided by
  • Interest rates both the deposits as well as advances were de-regulated and each bank was free to decide on the interest rates it chose to offer including interest on savings  account which until recently was regulated by RBI.
  • Similarly, in respect of lending rates, banks were free to decide on the interest rate they would charge, they had to publish the lowest rate of interest they would charge to  their best except that clients known as the benchmarked prime lending rate (BPLR). BPLR, however, lacked transparency as banks were lending even below BPLR  known as sub BPLR lending. As a result, transmission of policy rate of RBI on  lending by banks was diffused. To obviate this, RBI in 2010 has asked the banks  to switch to base rate of interest, and that lending would not be done by banks,  below their respective published base rate of interest, except DRI advances for  weaker sector, loans against own deposits and loans to employees.
  • Banking was made more transparent, stress on full disclosure of both the good and bad assets.
  • There was a standardization and uniform income recognition, asset classification and provisioning norms for the banking sector. For the first time, a uniform definition  was given to non-performing assets (NPAs) known as the 90 days norms. Thus,  interest on loans provided if not received within the stipulated time would require to  be classified as an NPA.

 

Final Destination for Haryana PSC Notes and Tests, Exclusive coverage of HPSC Prelims and Mains Syllabus, Dedicated Staff and guidence for HPSC Exams HPSC Notes brings Prelims and Mains programs for HPSC Prelims and HPSC Mains Exam preparation. Various Programs initiated by HPSC Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––

Hope we have satisfied your need for HPSC Prelims and Mains Preparation

Kindly review us to serve even better


HPSC Mains Test Series 2022

20 Quality mock tests and GS Mains Notes

Mains Test Series and Notes (With Evaluation and Skill Enhancement)

Mains Printed Notes (With COD)

Mains PDF Notes (Digital)


For Any Suggestion’s and Updates kindly Comments your doubts Here

Hope we have satisfied your need for HPSC Prelims and Mains Preparation

Kindly review us to serve even better


HPSC Mains Test Series 2020

20 Quality mock tests and GS Mains Notes

Mains Test Series and Notes

Mains Printed Notes (With COD)


HPSC Prelims Test Series 2020

24 Quality mock tests and GS Prelims Notes

Prelims Test Series and Notes

Prelims Printed Notes (With COD)

Subscribe to HPSC Notes

Never Miss any HPSC important update!

Join 2,152 other subscribers