Twenty Five Years of Financial Sector Reforms in India: 1991-92 to 2016-17

Sarika R. Lohana

ISBN 10: 8177084526 / ISBN 13: 9788177084528

Published by New Century Publications, 2017

About this Item

Contents: Part I: From Financial Repression to Financial Liberalization. 1. Financial system: an overview. 2. State domination of the financial sector (1947-1990). 3. Financial sector reforms since 1991. 4. Legislative and institutional measures for strengthening financial sector. 5. Financial regulators in India. 6. Financial inclusion policies and initiatives. 7. Micro Finance and Self-help Groups (SHGs). 8. Demonetization of high denomination currency notes in November 2016. Part II: Reforms Impacting Financial Institutions. 9. Classification, regulation and supervision of financial institutions in India. 10. Reserve bank of India: functions and changing role. 11. Commercial banks: post-independence history and reforms. 12. Payment banks. 13. Foreign banks in India. 14. Regional Rural Banks (RRBs). 15. Urban Co-operative Banks (UCBs). 16. Rural co-operative credit institutions. 17. Development Finance Institutions (DFIs). 18. Non-banking Financial Companies (NBFCs). 19. Mutual funds. 20. Pension funds. 21. Insurance organizations. 22. Digital technology in banking sector. Part III: Financial Market Reforms. 23. Financial markets: an overview. 24. Money market. 25. Government securities market. 26. Capital market. 27. Corporate debt market. 28. Foreign exchange market. 29. Payment systems, clearing and settlement infrastructure. 30. Integration of financial markets. 31. Credit rating practices. Part IV: Traditional and Innovative Financial Instruments. 32. Principal direct financial instruments of the capital market. 33. Financial derivatives: emergence and popularity. 34. Forwards, futures and options. 35. Derivative instruments in India. Bibliography. Index. A modern economy, characterised by acute specialisation and exchange, is unthinkable without financial intermediaries, financial markets and financial instruments. Developing appropriate financial institutions and financial markets is a pre-requisite for speedy economic growth. Soon after Independence in 1947, Government of India followed a policy of social control of important financial institutions. The nationalisation of the Reserve Bank of India (RBI) in 1948 marked the beginning of this policy. This was followed by the takeover of the then Imperial Bank of India in 1956 which was rechristened as State Bank of India (SBI). In 1956 also, 245 life insurance companies were nationalised and merged into the newly created Life Insurance Corporation of India (LIC). In another significant development, Government nationalised 14 major commercial banks in 1969. The year 1972 saw the nationalisation of general insurance companies and the setting up of General Insurance Corporation (GIC). In 1980, 6 more commercial banks were nationalized and brought under public ownership. As a result of state domination, India s monetary and financial system was characterised by barriers to entry, control over pricing of financial assets, high transaction costs and restrictions on movement of funds from one market segment to another. It was in this backdrop that wide-ranging financial sector reforms were introduced as an integral part of the economic reforms programme started in early 1990s. These reforms have paved the way for integration among various segments of the financial system. It is widely accepted that reduction/removal of financial repression has enhanced the efficiency and potential growth of the Indian economy. Financial sector reforms since the early 1990s have focused on the following objectives: (a) elimination of segmentation across various markets in order to facilitate transmission of impulses across markets, (b) easing the liquidity management process and (c) making allocation of resources more efficient across the economy. To achieve the above objectives, restrictions on pricing of assets have been removed along with the introduction of new instruments. Technological infrastructure has also been strengthened. The general approach to financial sector reforms has bee.

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Bibliographic Details

• Title: Twenty Five Years of Financial Sector Reforms in India: 1991-92 to 2016-17
• Publisher: New Century Publications
• Publication Date: 2017
• Language: English
• ISBN 10: 8177084526
• ISBN 13: 9788177084528
• Binding: Hardcover
• Edition: 1st Edition
• Condition: New

About this title

Synopsis

Soon after Independence in 1947, the government of India followed a policy of social control of important financial institutions. As a result of state domination, India's monetary and financial system was characterized by barriers to entry, control over pricing of financial assets, high transaction costs, and restrictions on movement of funds from one market segment to another. It was against this backdrop that wide-ranging financial sector reforms were introduced as an integral part of the economic reforms program started in the early 1990s. These reforms have paved the way for integration among various segments of the financial system. It is widely accepted that reduction/removal of financial repression has enhanced the efficiency and potential growth of the Indian economy. Restrictions on pricing of assets have been removed, along with the introduction of new instruments. Technological infrastructure has also been strengthened. The general approach to financial sector reforms has been a transparent, collaborative, and consultative process aimed at resolving many possible dilemmas. The reform process itself has been characterized by caution with a slant towards preserving stability, careful sequencing of measures, mutually reinforcing monetary initiatives, and ensuring consistency and complementarity with other policies. This book explains and examines at length the changes which have swept India's financial sector since 1991. [Subject: Business & Economics, Investment, India Studies, Trade]