Question

Goals liberalisation of banking sector in india meaning

Answer 1

Heya....

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Banking sector in India is liberalised means every bank is just free to accept the demand deposits of the costumers .......

Goals of this :-

• Increase the banking money..

• Increase the loans capabilities of banks...

• Rise in flow of money in an economy...

Thank you

Answer 2

India has over the last decades experienced different degrees of repressive policies in the banking sector.
This paper focuses on the changing intensity of three policies that are commonly associated with
financial repression, namely interest rate controls, statutory pre-emptions and directed credit as well as
the effects these policies had. The main findings are that the degree of financial repression has steadily
increased between 1960 and 1980, then declined somewhat before rising to a new peak at the end of the
1980s. Since the start of the overall economic reforms in 1991, the level of financial repression has
steadily declined. Despite the high degree of financial repression, no statistically significant negative
effects on savings, capital formation and financial development could be established, which is contrary to
the predictions of the financial liberalization hypothesis.