Fairs and Festivals Governance India, the world's largest democracy, has made tremendous strides in economic and social development in the past two decades. The country aims to become a higher middle-income country by and that calls for even faster growth in the years to come. With new government in place this year, India currently stands at the threshold of a unique opportunity regarding governance reforms. Governance is central to equitable socio-economic progress and political legitimacy.
Consolidation imperative Regulators The Finance Ministry constantly formulated major strategies in the field of financial sector of the country. The Government acknowledged the important role of regulators. Some opinions are also there that there should be a super-regulator for the financial services sector instead of multiplicity of regulators.
Indian Banking Sector and Financial Reforms The main intent of banking sector reforms was to uphold a diversified, efficient and competitive financial system with the aim of improving the allocative efficiency of resources through operational flexibility, improved financial viability and institutional solidification.
As early as AugustIndian financial sector reforms government selected a high level Committee on the Financial System the Narasimham Committee to look into all facets of the financial system and make comprehensive recommendations for improvements. The Committee submitted its report in Novembermaking several recommendations for reforms in the banking sector and also in the capital market.
Soon thereafter, the government announced broad acceptance of the approach of the Narasimham Committee and a process of gradualist reform in the banking sector and in the capital market was set in motion, a process that has now been under way for more than six year.
PSBs are still governing the commercial banking system. The RBI has given licenses to new private sector banks as part of the liberalization process.
The RBI has also been granting licenses to industrial houses. Many banks are effectively running in the retail and consumer segments but are yet to deliver services to industrial finance, retail trade, small business and agricultural finance.
Major change observed by individuals is many transformation in policies of the banking sector. The reforms have focussed on eliminating financial repression through reductions in statutory pre-emptions, while stepping up prudential regulations at the same time. Additionally, interest rates on both deposits and lending of banks have been gradually deregulated.
The major reforms relating to the banking system were: Capital base of the banks were strengthened by recapitalization, public equity issues and subordinated debt. Prudential norms were introduced and progressively tightened for income recognition, classification of assets, provisioning of bad debts, marking to market of investments.
Pre-emption of bank resources by the government was reduced sharply. New private sector banks were licensed and branch licensing restrictions were relaxed. Similarly, several operational reforms were introduced in the area of credit policy: Detailed regulations relating to Maximum Permissible Bank Finance were abolished.
Consortium regulations were relaxed substantially. Credit delivery was shifted away from cash credit to loan method. Many reports signified that the initial steps have been taken in the form of allowing new banks to set up shop.The Financial Sector Legislative Reforms Commission (FSLRC) is a body set up by the Government of India, Ministry of Finance, on 24 March , to review and rewrite the legal-institutional architecture of the Indian financial sector.
This Commission is chaired . Indian Aviation Industry has been one of the fastest-growing aviation industries in the world with private airlines accounting for more than 75 % of the sector of the domestic aviation market. Indian Financial Sector Reforms* Introduction At the outset, I am thankful to the Institute International Bankers for giving me this opportunity of addressing the Annual Washington Conference Financial Services covers the functioning of Banks, Financial Institutions, Insurance Companies and the National Pension System.
Indian Financial Sector Reforms: A Corporate Perspective Jayanth R. Varma Reproduced with the permission of Vikalpa, the journal of the Indian Institute of Management.
India is the name given to the vast peninsula which the continent of Asia throws out to the south of the magnificent mountain ranges that stretch in a sword like curve across the southern border.