In order to further financial inclusion, RBI also proposed to set up 2 new kinds of banks i.e. Payment Banks and Small Banks. In 2015, RBI gave in-principle licence to 11 entities to launch Payments Bank and granted 'in-principle' approval to the 10 applicants to set up Small Finance Banks.
The Federal Reserve System was founded to be a safer, more flexible, and more stable monetary financial system. Over the years, the role of the Federal Reserve Board and its influence on banking and the economy has increased. Today, the Federal Reserve System's duties fall into four general categories.
Central banks have a key role in. The developing local debt markets development of local currency bond markets is tical to Africa’s financial cri development and resilience to shocks. Government fiscal and debt management policies should not undermine effective.
Role of Commercial Banks in the Economy As we know that main objectives of a commercial bank is to earn profit by the process of accepting of deposits and advancing loans through different methods. Although these functions are the basic function of commercial banks, but there are a lot more functions which enhances the importance of banks today.
In developing economies like India, the banks work as mobilizers of savings and allocators of credit for production and investment, have a very critical role. As a financial intermediary, the banks contribute to the economic growth of the country by identifying the entrepreneurs with the best chances of successfully initiating new commercial activities and allocating credit to them.
With automation, service no longer remains a marketing edge with the large banks only. Small and relatively new banks with limited network of branches become better placed to compete with the established banks, by integrating IT in their operations. The technology has commoditising some of the financial services.
Essay Writing is one of the two questions asked in the descriptive tests of various exams like SBI-PO, IBPS-PO, BOB and many more. A chunk of the essay topics for banking exams include topics related to the banking and economy sectors.
Free Finance Essays. Home.. Essay: Basel III. The banks play vital role in the smooth functioning of an economy. Banks must have adequate capital to meet the requirements of mass people especially its depositors. Thus, the banks. Continue reading “Essay: E-payment.