Banking Industry: Central Source of the Indian Market

The word ‘Bank’ came from an Italian word meaning ‘Banco’. In Italy, benches were kept in the industry to transact the company. Such banco arrangements were used to be made for smooth exchange of money and other bills of the company. A Loan company is nothing but a financial institution and a financial intermediary that accepts remains and directs those remains into lending activities, either directly or through investment markets. In a way, bank connects customers that have investment deficits to customers with investment surpluses. 

The origin of Native Indian financial institutions dates back to the 1700s i.e. in the English concept. The General Loan company of Native Indian and The Hindustan Loan company were the first financial institutions which came into existence during the English concept, however now these financial institutions no more exist. The State Loan Company of Native Indian or SBI is the oldest bank existing in Native Indian. It was called the Imperial Loan company of Native Indian (a merging of three financial institutions, namely, the Loan Company of Calcutta, the Loan Company of Bombay and the Loan Company of Madras). After the independence, the Imperial Loan Company of Native Indian was owned by the Govt of Native Indian and was named as the State Loan Company of Native Indian. business research

The Source Loan Company of Native Indian, established in 1934 and nationalized in 1949, under the Source Loan company of Native indian Act, is the Central Loan company of Native indian. It is the apex of the Native indian Financial Program. Industry Survey Also in1949, the banking regulation act was passed which empowered the Source Loan company of Native indian (RBI) “to regulate, control, and inspect the financial institutions in Native indian.” 

By the 1960s, the Native indian banking market had become an important tool to facilitate the development of the Native indian economic system. A need was felt to nationalize the financial institutions. So, the Govt of Native indian issued an ordinance and nationalized the 14 largest professional financial institutions in 1969. A second dose of nationalization of 6 more professional financial institutions followed in 1980. The Govt of Native indian controlled around 91% of the banking company of Native indian. Merger of New Loan Company of Native indian with Punjab National Loan Company within the nationalized financial institutions reduced the number of nationalized financial institutions from 20 to 19. And so presently we have 19 nationalized financial institutions in Native indian. 

Nationalization was followed by Liberalization i.e. licensing some personal financial institutions. Hence some personal financial institutions also came into function in the 1990s. These financial institutions also contribute to the growth of Native indian economic system as they have higher efficiency, sophistication as compared to the Community market financial institutions. market survey The next stage for the Native Indian banking has been set up with the proposed relaxation in the norms for International Direct Investment, where all International Investors in financial institutions may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 74% with some restrictions.

The Native Indian Financial Industry can be categorized into Planned financial institutions and Non-scheduled financial institutions. Planned financial institutions constitute of scheduled professional financial institutions and scheduled co-operative financial institutions. The Planned Commercial financial institutions can be separated into Community market financial institutions, Private market financial institutions, foreign financial institutions and Regional Non-urban Banks. The Planned Co-operative financial institutions can be separated into Urban Co-operative and Non-urban Co-operative financial institutions. 

In the Native Indian Financial Industry some of the Private Sector Banks managing are ING Vyasa Loan Company, IDBI Loan Company, Loan company of Rajasthan Ltd, SBI Commercial and International Loan Company Ltd. and financial institutions from the Community Sector include Allahabad Loan company, Oriental Loan company, Punjab National bank, Vijaya Loan company, UCO Loan company among others. American Express Loan Company Ltd, ABN-AMRO Loan Company, ANZ Grindlays Loan Company, and Citibank are some of the foreign financial institutions managing in the Native Indian Financial Industry. Industry Analysis 

The Community Sector Banks (PSBs), which are the base of the financial market in Native Indian account for more than 78 per cent of the total banking market resources. Unfortunately they are burdened with excessive Non Performing resources (NPAs), massive manpower and lack of today's technological innovation. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. As far as foreign financial institutions are concerned they are likely to succeed in the Native Indian Financial Industry. 

Now-a-days, banking market acts as the backbone of contemporary company as Finance is the life blood of trade, commerce and market. Development of any country mainly depends upon the banking system. That’s the reason why there was adopting of technological innovation and computerization in the banking market, too. 

Adoption of technological innovation enabled the Native Indian financial institutions to offer products like an atm card, bank cards, ATM, Internet banking, mobile banking, etc. Services like Core Financial Solutions (CBS), Electronic Fund transfer (EFT), Electronic Clearing Program (ECS), Real Time Gross Settlement (RTGS) are possible due to technological innovation and computerization. In addition to this, the Contemporary Native Indian banking market has also entered into Merchant banking, Asset management, infrastructure management, legacy maintenance and migration services, etc. resulting in greater customer satisfaction. 

All through this, the Source Loan company of Native indian (RBI) remained the controller of every move of the financial institutions. The use of today's innovation and computerization has increased many folds and the country's banking market has been out in the open to the world's market. Today, Native indian financial institutions can compete with modern financial institutions of the world with poise.