BANKING MAGIC

Anshu Chauhan
Lecturar
SIMT
By the end of 1991, in the days of globalization the priate ban!s "ere
going at rapid rate# The inest$ent right full in ban!ing industry on a
global scale re$ained oligopolistics in nature ranging fro$ the global
leaders to %ublic sector underta!ing inest$ent ban!s and & bouti'ues &
inest$ent ban!s portfolio for the fund based "ere earning at higher
interest rate as the earlier non(fund based #%riate ban!s i$proe
$argins by offering $ore serice as the result of high salaried indiidual
disposable inco$e increased and for the better$ent they need
professional adice #In case of priate sector ban!s inest$ent at the
aggregate leel sho"ed at a significant increase in )**+()**, , the total
inest$ent by )1#9- to .s),*/,/0, crore during )**+(*, fro$
.s1,++,0+1#
Strongest Secret is the additional flo" of credit to co$$on public is the
reason for increasing rate of inflation# Many progra$s hae been
launched to fairly increase the floatation of $oney but hardly any one has
defined ho" $uch, the 'uantity econo$ist considers de$and creation is
the result of indiidual inco$e# 2id any financial institution or priate
sector hae searched the $a3i$u$ paying capacity for an indiidual4 If
no, than it is the right ti$e to decide #In today5s "orld of serices eery
step "ill lead to suitable econo$ic eniron$ent and econo$ically poorer
population "ouldn5t feel unfortunate on their e3istence in one the $ost
deeloping nation #Seeral $easures and effects can be considered for
right ans"ers that $a!e each .upee as the alues of $oney 6666666
To $any obserers, the recent debate about possible fiscal policy
interention suggests that "e are still relying on the approaches to
discretionary in post periods of policy actiis$# The central ban!
increased statutory li'uidity ratio 7SL.8 by 1** basic points fro$ )9- to
)1- effectie fro$ :oe$ber;0;)**9# Scheduled co$$ercial ban!s are
currently $aintaining SL. inest$ent at ), - of their net de$and ti$e
liability as it has been noticed that increase in SL. "ill not the i$pact of
li'uidity position for ban!ing syste$ and credit to priate sectors #
2rastic gro"th to priatization and e3tension of financial institution for
the lending credit to $ar!et is a irtue or ice# By the end of March )*1*
budget )*1*()*1 has sho"n arious ariation in rupees# 2ate has sho"n
$obilization of Indian currency by :on Ta3 .eenue i#e# 11p, non < debt
capital receipt i#e# /p and borro"ing and other liabilities is )9p# there are
so$e factors such as serice Ta3 , =nion >3cise duties , custo$ ? Inco$e
Ta3 totally they $a!e /9p#@n the contrary rupees goes to :on <plan
assistance ,state share of duties and ta3es ,plan assistance to sate and
=T, central plan , subsidies and defiance, Interest pay$ent and finally
other non( plan e3penditure that $a!es the total of 9/p# @n ground
bases budget loo! fine , it "ill possible to fulfill the aspiration of a one
billion population, Ainance $inistry faced an econo$y that "as Bust about
gathering pace after a $assie pull bac! that threatened to undo nearly
all the goods "or! of one decade# This $i3ture of all the possible adices
by assu$ing a gro"th 0#1- of Cross do$estic products in real ter$, that
is net of the inflation# The esti$ated inflation rate is 9- for the yearD The
Indian econo$y has co$e a long "ay Bust a hope #India "ith the
adanced Industrial structure in the "orld the only laggard in the
agriculture sector# Total production of each sectors actually contracted in
the year )**9()*1*# Budget has substantially raised the allocation for
special including the goern$ent flags ship Bharat :ir$an progra$s and
rural e$ploy$ent sche$es < MC:.>CA# (The Mahatma Gandhi National Rural
Employment Guarantee Act)
Eear )*1*()*11 has $ade a fair start to getting bac! on the path of
stable gro"th , "hile balancing the ris! of a continuing global slo"do"n
but "ithout boarded participation , rapid gro"th cannot be sustained
effortlessly for year and year to co$e but the $aBor issues is to calculate
on that basis "e are forecasting our future gro"th D on the higher rate of
foreign direct inest$ent , better approach to other countries or on the
basis of increasing poerty line , increasing une$ploy$ent and $ost off
all static alue of $oney#
Better$ent in econo$ic stage and flourishing future for Indians can be
achieed by increasing the alue of $oney "ith the li$ited supply of
credit to general population#
.>A.>:C>S
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