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Essay on indian banking system in hindi

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The Theory of Everything: Banking In India

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Indian Banking System: History and Evolution

In India the banks and banking have been divided in different groups. Each group has their own benefits and limitations in their operations. They have their own dedicated target market. Some are concentrated their work in rural sector while others in both rural as well as urban. Most of them are only catering in cities and major towns. The banking system plays an important role in promoting economic growth not only by channeling savings into investments but also by improving allocative efficiency of resources. The recent empirical evidence, in fact, suggests that banking system contributes to economic growth more by improving the allocative efficiency of resources than by channeling of resources from savers to investors.
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Indian banking system has commendable progress in increasing geographical spread and functional reach. The nationalization of banks. With increasing global integration, the Indian banking system and financial system has as a whole had to be strengthened so as to be able to compete.
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The exact date of existence of indigenous bank is not known. But, it is certain that the old banking system has been functioning for centuries. Some people trace the presence of indigenous banks to the Vedic times of BC. It has admirably fulfilled the needs of the country in the past.
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