Build your professional network on facebook via our app Go to app
 
 
 

Permission to opening of new Private sector Banks - Policy mey creat another problem

Created by : NARAYAN YAJI, Senior Manager, KARNATAKA VIKAS GRAMEEN BANK  | 04 01 2010 14:46:01 +0000
Industry : BankingFunctional Area : Business Processes(Operations)
Keywords : permission to opening of new private sector banks - policy mey creat another problem
Activity:  999 views;  last activity : 07 06 2010 20:18:09 +0000

In India there are three types of Banks are functioning:

  1. Public Sector Banks working / established under the acto the Parliment: SBI & Its Group, All Nationalized Banks, & Regional Rural Banks
  2. Banking companies established under the act of Companies act 1956: All new & old gen pvt sector Banks
  3. Co-op Banks: Governed under the state co-op or center co-op act as in case of multi state co-op banks

However thess banks are strictly controlled by RBI by its credit/selective controll policy. There is not much difference in working nature of old Pvt sector Banks & Nationaloized Banks/ RRBs. It is after the entry of new gen Banks everyone has alerted through its tech seavy. It has become a model for all the public sector banks to re engineer themselves about their functions. At the same time we could see the other face of the coin. In the name of maximisation of profit slowly these Banks have occupied the place of money lenders. Technology is not a substitute for human interference but it is an instrument to serve more fast. But the touch of humanity has not been seen in the Banks now a day. There is direct no relationship between customer & the Banker. The person process, delivers, recovers are seldom connected. The defination of Banking "Accepting deposit for the purpose of lending " has been diluted. The Banks now acts as insurance & real estete agent speculators & what not!. The defination of profit surplus over the expendture has been changed to maximisation of wealth wherein . Remember Lehman Brothers episode. Even NINJA loans also floted to mark maximisation of wealth. The common man  realise his profit when its bubbles starts bursted. The concept of service throuhg profit, profit through service is vanished.If another set of new gen Banks are floated it may create hell competetion for the profit. Banks may tend to make more speculation in money market. They may put pressure with govt. to deregularise RBI's role. Instead of opening of new Banks Govt should come forward in streangthening BC model, Financial inclussion & micro finance wherin recovery is aboe 90% through out the country.

  
 Refer 303
Share
 
 
  Rate : 
 
 
Yes Vs No
4
 
 
 
 
6
2
4
Support   Support
 
Top Argument
1
0

No it is really good to have more private banks. This will bring new technology and new concepts into the banking sector. Banks are the main reason for the rural development and permitting more banks will help them grow fast and make India a developed country......

Thanks for imitating narayan....... 
By Anita Sawant, M & A Advisor, SBI Caps  04 05 2010 12:35:46 +0000
0
0

I WOULD LIKE TO TO OPEN A OUBLIC SECTOR BANK-KISHOR PATHAK
By KISHOR NIRANJANBHAI PATHAK, Freelancer, Freelancer  | 04 06 2010 10:40:01 +0000
1
0

All we know about the process/regulations of RBI. Although it is not bad to discuss to open new private sector banks but it is not admirable that we can discuss about it without controlled/regulated by RBI. Regulation of RBI helps Indian banking system in true manner. Retail Investor trust in banks only for RBI control rather than Public or Private sectors. The major role, we have already seen during recession period. I ensure that if banks were not regulated under RBI then during the recession the same episodes happened in India like USA n others..

And in present scenario there is no need for new private sector banks because already private & foreign banks create a huge competition between customers. & if continue then customers will not in the position to judge that which is better for them same like NBFCs....
By Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.  | 04 05 2010 18:19:32 +0000
1
0

I think government"s policy to give bank  licence to some other private players will strenthen indian banking system. banking sector is growing at a rapid pace these days. it is a good step to meet the increasing demand.It will increase competition among banks and customers will get benifit out of it.
By Mayank Trivedi, Cash Officer, ICICI Bank  | 04 05 2010 15:21:10 +0000
1
0

1st thing is I am assuming that private banks include Foreign banks.

It is proven and published in number of journals that an entry of foreign banks into a domestic market has a loads of +ve's like working culture of Indian banks was never the same we all know how it was. when private banks enter into a market as u say it brings competition   so the result is due to a competitive market all the or most of the banks react. Good working Private banks like ICICI or say Axis has been efficient due to its working ways Technologies used. Remember in the past if u hold an account in a Branch of a bank u can only operate from the same bank  but this banks changed that system and brought in a system used in foreign countries i.e. CORE banking where in u can operate the bank account from any branch.

The bottom line is Entry of a private banks increases Competition, Efficiency, Profitability and last but not the least beings Development and Growth.
By Urvish Pankajkumar Subodh, Guest Lecturer (Economics), H.L.College of Commerce- H.L. Institute of Commerce.  | 04 05 2010 13:07:31 +0000
Argue for "Yes"
Argue for "No"
 Found the debate "Permission to opening of new Private sector Banks - Policy mey creat another problem"  interesting ?  Suggest to your connections and communities  
Managed HR Services
  • Create a confidential Career Profile and Resume/C.V. online
  • Get advice for planning their career and for marketing of experience and skills
  • Maximize awareness of and access to the best career opportunities
Viewers also viewed
See at the link below. http://en.wikipedia.org/wiki/Simon–Ehrlich_wager
 
271 referals 5 arguments, 378 views
No! India can do without the FBI in retail sector. vs Yes! It is needed for both the farmers and...
 
157 referals 16 arguments, 349 views
The Banking sector has woken up to the potential in the rural sector. More and more specialized...
 
1 referals 21 arguments, 1303 views
more...  
Recent Knowledge (5)
WE HAD A GOOD NUMBER OF INVENTORS WITH GREATER VISION ABOUT THE SOCIETY. INVENTORS HERE NEED NOT...
 
2 referals 2 arguments, 97 views
These days as I switch on the tv or radio or look at a hoarding I do feel that power of ads I...
 
3004 referals 23 arguments, 482 views
C vs B
 
0 referals 3 arguments, 51 views
more...  
Sponsored Jobs
More From Author
In India there are three types of Banks are functioning: Public Sector Banks working / established under the acto the Parliment: SBI Its Group, All Nationalized Banks, Regional Rural Banks Banking companies established under the act of Companies...
Economic Development means not economic independence. It is obvious that the USA being gaint in technology one has to follow it. But at the same time the developming country inculcate themselves not to be ginnypig of the developed country. Our aim...
Financial inclussion isyet another revolution initiated by the RBI. It is shameful on our part that still a large number of the population are deprived of Banking facilities in India. The idea of opening of no frill accounts instant credit of Rs,...
more...  
  • Popular Knowledge
  •  
  •  
  • Popular Jobs
  •