Post 1991 Banking Sector Reforms in India: Policies and Impacts

29 Pages Posted: 6 Feb 2008

Date Written: January 31, 2008

Abstract

The banking sector reforms in India were started as a follow up measures of the economic liberalization and financial sector reforms in the country. The banking sector being the life line of the economy was treated with utmost importance in the financial sector reforms. The reforms were aimed at to make the Indian banking industry more competitive, versatile, efficient, productive, to follow international accounting standard and to free from the government's control. The reforms in the banking industry started in the early 1990s have been continued till now. The paper makes an effort to first gather the major reforms measures and policies regarding the banking industry by the govt. of India and the Central Bank of India (i.,e. Reserve Bank of India) during the last fifteen years. Secondly, the paper will try to study the major impacts of those reforms upon the banking industry. A positive responds is seen in the field of enhancing the role of market forces, regarding prudential regulations norms, introduction of CAMELS supervisory rating system, reduction of NPAs and regarding the up gradation of technology. But at the same time the reform has failed to bring up a banking system which is at par with the international level and still the Indian banking sector is mainly controlled by the govt. as public sector banks being the leader in all the spheres of the banking network in the country.

Keywords: prudential regulation, CRAR, NPA, corporate governance, operational flexibility, functional autonomy

JEL Classification: G21

Suggested Citation

Kalita, Basanta, Post 1991 Banking Sector Reforms in India: Policies and Impacts (January 31, 2008). Second Singapore International Conference on Finance 2008, Available at SSRN: https://ssrn.com/abstract=1089020 or http://dx.doi.org/10.2139/ssrn.1089020

Basanta Kalita (Contact Author)

Tezpur University ( email )

Napaam
Tezpur, IN Assam 784028
India

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
5,196
Abstract Views
26,124
rank
1,798
PlumX Metrics