Financial Institutions Play Interesting Role In Upgrading Indian Economy To The Next Level Of Greatness
With changing times, India has grown from a British colony to a
global economic superpower. With the recession and other pecuniary
meltdowns hitting economically strong countries in the world,
India has sustained from major losses and is still standing in
success. A major factor behind this superb sustenance is the qualified
banking and finance personnel trained by the wide range of
Banking and Financial Institute in India.
In terms of fiscal economics, an institution providing
financial services to its customers is a “financial institution.”
Most of the financial institutes in India are government regulated.
Moreover, the most important service offered by any financial
institute, is there working as “financial intermediaries” such as
banks.
Economic Developments In India
Having understood the importance of financial institutions in India,
let us get an in-depth understanding of the major economic reforms that
have dominated the Indian banking sector. In the era
of economic modifications, the Banking and Financial Institute in India
undergone key
transformations and alterations. Such developments in finance have
not only persuaded efficiency and productivity in many financial
institutions across India, but also succeeded in leaving
perpetual traces in the working principles of Indian banks. One of
the primary reorganization happened in the area of SLR –Statutory
Liquidity Ratio, and CRR –Cash Reserve Ratio via reducing the
CRR to 3 -15% of Time Liabilities and Net Demand, and SLR to the
level of 25%. Another significant improvement took place in deregulating
the rate of interest, and finally repairing the
prudential norms.
Financial Services Overview
Financial institutes offer intermediary services representing the
financial markets of the country. They work as establishments
responsible in funds transferring to needy companies from
investors. The fundamental job of financial institutes is to ensure
money flow through economy. SSI or “Standard Settlement Instructions”
are those agreements that take place in between two
banking institutes and include receiving agent set-up for both
counterparties in any regular trades. Such agreements promote trades in
between traders by saving the time from receiving agents,
and limits chances of fraud transfers.
Global Structure of Financial Regulation
Globally in every country, the financial institutions play an
important role in shaping the economy of the country. Hence, the banking
institutions operate in high environmental regulations.
Although the structure of banking regulations is different from one
country to another, the typical layout works in similarity to each other
in ensuring consumer protection, prudential regulation
improvements, and maintaining market stability. Some countries
maintain a single consolidated agency to regulate all the banking
institutes across country, while others have separate
agencies.
Eduezee.com - I am a banker and readily believe that with the new economic reforms and steady growth, the banking and financial institute in india is in the
route to huge success.