Abstract: - Service Sector is an important vehicle in the journey called economic development. Service sector plays an indispensable role in the overall blooming of any country. Service sector contributes approx 57 % in the gross domestic product of India. The banking and the finance sector are the prominent contributor of the service industry. Thus these sectors are always at the center of attraction of any country. In recent years banking sector has witnessed a mammoth improvement. The Reserve Bank of India the supreme authority had taken various measures to promote the financial inclusion in the country. Even though various efforts had been done still the fact remains same as India is lagging behind other developed countries in terms of …show more content…
Financial Inclusion includes various procedures and strategies adopted by the nation to ensure quick and easy access of financial products and services to the rural household population. Financial inclusion is a roadmap for inclusive growth of the overall economy. It illuminates the informal sources of the credits known as money lenders from the system. Thus an all inclusive financial system ensures economic stability and even allocation of the economic resources. According to the Rangrajan Committee report of 2008 Financial Inclusion is the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at a affordable …show more content…
It had helped to create awareness in the rural and unbanked population. 2) Simplified KYC Norms: - From August 2005 the Know Your Customer (KYC) documents norms had been simplified. Under new norms R.B.I. had made it easy for the prospective accountholder on the basis of existing accountholders introduction the accounts can be opened. Thus the account opening process had been become easy. 3) Introduction of No Frill Account (NFA):- No Frill account was a major move taken by the R.B.I. as a part of financial inclusion. Under this scheme the bank account had been opened with nominal charges. India had got a phenomenal response of 25 million bank accounts but the operating activity of these accounts remains
I shall look finally, and briefly at the performance of the service sector with regard to its contribution to, and correlation with, the aggregate and industrial growth in output and productivity, before concluding that the service sector was the major contributing factor to the UK falling behind it counterparts. Despite this, the relatively small amount by which the economy fell behind is indicative of the over-exaggeration of the problem of British decline.
Financial exclusion is the inability for citizens to access proper financial services: primarily services and products such as official saving bank accounts or credits cards. A broad range of disadvantages in the lives of these individuals, caused by the failure to have connections with these services, can consist of examples such as the inability to take out loans
Mainstreaming equity and inclusion is a means of recognising that rights are universal, and that special measures must be taken to protect, promote and fulfil the rights of the poorest, the marginalised and those in vulnerable situations. It means ensuring that these principles and issues are incorporated in all areas.
Making improvements on our financial literacy results in a wave of impacts on our economy and the financial health in our society because of responisble behiavior with our finances. These modifications to our behavior are neccesary because it let's us address primary cultural problems, for example over-credits on your purchases, mortgages possibly resulting in debt, dealing with expectations on inflation and also planning on your retirement.
The industry is composed by a continuum of banks which produce a homogenous product — banking service. Domestic as well as foreign competition is violent. Not to forget the fact that ICBC has not been the first bank to embrace internet banking. So, it is all the more reason which places the bank in the most precarious position to continuously shield it self from the volleying competition.
When going to the bank or any other financial institution people do their business of deposits, withdrawals, and transactions often without even thinking about how it all happens and how it works. Actually there is a very complex and interesting process behind it all. Some people think everything is done on paper and mailed from place to place. This is not true anymore. Most of the banking process is now done electronically. Present day Banks, Credit Unions, and other financial institutions utilize technological advances to store and process customer data; this impacts customer service, data security, transactions, and the way the financial institution operates.
...rced. The information asymmetries between people who demand and who supply financial services can lead to adverse selection and moral hazard. The government can enhance financial inclusion by facilitating the access of banks to borrower information either by passing laws and regulation or by directly setting up public credit registries. The use of public funds is easy to justify in the interest of improving access and thereby promoting propoor growth. Several other direct intervention for financial inclusion have attracted attention in recent years which is government-to-person (G2P) payments, the use of state-owned banks, the use of government postal services for financial inclusion, and explicit financial inclusion strategies. Many countries have adopted formal national financial inclusion strategies and the financial inclusion strategy is led by the central bank.
The growth of services sector in our economy is a step forward in the development of Indian economy. In day to day life of an individual the use of mobile phones acts as necessity in getting connected with people for one or the other purpose. India has a largest variety of smartphones available for the users. Because of the fast technologies in smartphones & in market, the networks and services providers of telecom must be updated so as to meet the requirements of people. Indian telecommunication industry is considered to be one of the fastest growing telecom industries in the world. The mounting up of the subscribers reaches to an approximate 800 billion plus users in telecom sector. The industry is growing at as pace in such a way that it will reach a level beyond the telecom markets of USA &
Since the poor people do not have steady jobs, their incomes are irregular and unpredictable, and banks have no collateral against which the loans can be given out; thus the banks do not want poor clients from both rural and urban areas. Furthermore, the “geographical distance, the widespread illiteracy, and the diverse backgrounds of borrowers” (in this case the rural poor) and the frequency of high cost transactions make it difficult and non-desirable for the banks to give out the loans to rural poor communities. Banks also believe in the fact that the government’s rules and regulations make it difficult to distribute loans to the poor. India’s rural poor have their own financial needs that are influenced by their location, living situation, and their availability to resources and opportunities.
The study is primarily designed to find out the continuous issue of the banking system in
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
For account opening purpose, I learn that there are some documents that are needed for opening an account. These documents are mentioned below: Account opening form Name of person who is interested in opening new account Type of account Computerized copy of national identity card Check expiry date of CNIC Filled the account opening form Signature of that person SS card (specimen signature card) Mother name Father name Present address Permanent address KYC form (know your customer) CNIC of KIN SS card (specimen signature card) SS card (specimen signature SS Card signature is very important because through signature we judge whether money is withdrawn by the original person or not. KYC form contains secret information about the client like father and mother name, business address, email address of that person, postal address and content number.
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.
This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified