Professional Documents
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Pradeepta Sethi
TAPMI
Why do we need banks ?
Financial Systems
Financial Functions
Economic Growth
Evolution of banks
3,900 B.C. - Egypt adopted a banking service utilizing cows as
units of exchange
Money lending activity in India could be traced back to the Vedic
period, i.e., 2000 to 1400 BC.
Kautilyas Arthashastra dating back to 400 BC contained
references to creditors, lenders and lending rates.
Modern Banking has European origin
The word Bank is derived either from Old Italian Banca or Middle
French Banque both meaning a table or bench
A bench for keeping, lending, and exchanging of money or coins
in the market place by money lenders and money changers.
History of banking in India
They are not entitled to borrow from the RBI for normal
banking purposes, except, in emergency or abnormal
circumstances.
Universal Banking
Vision 2018
l Less-cash society
l Coverage wider access
l Convenience ease of use of products and processes
l Confidence integrity of systems, security of operations
l Convergence interoperability across service providers
l Cost cost effective services
Recent developments
Supervisory measures
l Asset Quality Review (AQR) - compared the quality of loan assets
against applicable Reserve Bank norms
l Central Repository of Information on Large Credits (CRILC) -
aggregate fund-based and non-fund based exposure of 50 million
and above
l Central Fraud Registry (CFR) - a web based searchable database of
frauds containing data for the last 13 years was made operational on
January 21, 2016
l Banking Regulation (Amendment) Ordinance, 2017 - initiate
insolvency resolution process in respect of a default, under the
provisions of the Insolvency and Bankruptcy Code, 2016 (IBC)
l Public Sector Asset Rehabilitation Agency (PARA)