Essay about The Indian Apex Bank And India

Essay about The Indian Apex Bank And India

Length: 1404 words (4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

1.4. Case description
The Indian apex bank, the RBI argued that the context in India was different from that of other countries which had launched successful mobile money services (for example M-Pesa in Kenya), and therefore developed a prescriptive regulatory framework for India (Gupta & Tahilyani, 2013). In particular, they were of the opinion that other countries: a) had services which focused only on remittances, and not a complete set of mobile banking tools such as bank accounts, fixed deposits, recurring deposits and insurance, which the RBI wanted deployed in India, b) had relatively poor banking infrastructure compared to India, c) had a national identification number which could be used to facilitate transactions, which India did not have at the time, and d) had network operators with a monopoly position (or an effective monopoly position), which made it easier for them to achieve scale (Lal & Sachdev, 2015).
This led the RBI to develop a regulatory regime which:
a) only allowed banks to operate mobile money services,
b) created a specific model for agent networks, which allowed banks to utilize special non-profit entities, Business Correspondents (BCs) and Customer Service Points (CSPs). BCs were allowed to act as agents of banks only for the purpose of acquiring unbanked customers. Thus, BCs are essentially an intermediary between the bank and the customers. More precisely, BCs are intermediaries that offer financial services on behalf of banks to customers who, either by virtue of their place of residence (far from a bank branch) or their circumstances (small savings, illiteracy, poor identification documents), are difficult to serve. CSPs are the mobile money agents that serve as contact points for end users, co...


... middle of paper ...


...r only one bank. At first, it focused on recruiting airtime distributors to become master agents by converting the retailers they managed into agents. However, that proved difficult, as the commissions were not competitive compared to airtime sales, the retailers did not have enough liquidity, and they were worried that digital finance might displace their airtime sales business. Currently, Alpha has served 3 million customers with over 30 million transactions with a value of over US$1.2 billion. It has partnered with 3000 agents and 4 banks for mobile banking and money transfer services.
Alpha is an example of a supreme garage innovation! If you thought the rate of change was fast thanks to the garage innovators of Silicon Valley, wait until the garages of Delhi, Mumbai and Bangalore get fully up to speed. I sure hope we’re ready – Thomas Friedman (Dhanraj, 2014).

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

State Bank Of India Essay example

- STATE BANK OF INDIA The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal....   [tags: Banking Finance]

Free Essays
1036 words (3 pages)

India 's Banking Sector Is Growing Very Fast Essay

- India’s banking sector is growing very fast. After post liberation there has been a noticeable expansion in transactions through ATMs, and also with internet and mobile banking banks has shown tremendous growth. The Indian banking sector entails of 26 public sector banks, 20 private sector banks and 43 foreign banks along with 61 regional rural banks (RRBs) and more than 90,000 credit cooperatives. The Banking Laws (Amendment) Bill by the Indian Parliament in 2012 has opened many avenues for the banking industry....   [tags: Bank, Cheque, Credit card, Hari Singh]

Better Essays
988 words (2.8 pages)

The Indian Bank Of India Essay

- INTRODUCTION Banking in India originated in 18th century. The General Bank and The Bank of Hindustan were among the first banks to be set up. State Bank Of India is the oldest bank of the country. Then in 1935 the Reserve Bank of India was established. A step ahead were taken when all the major banks were nationalised in 1969 by the Government of India . Oudh Commercial Bank was the first entirely Indian joint stock bank set up in 1881 in Faizabad .Due to its failure in 1958, Punjab National Bank wsa set up in Lahore in 1894....   [tags: Bank, Cheque, Fractional-reserve banking]

Better Essays
1101 words (3.1 pages)

Impact Of The Global Financial Crisis On Indian Economy Essay

- Background of the Global Financial Crisis; What is it all about. It all began with the one and all American dream, that every American should have a home. Regardless of who you are and what you do, if you are an American, you should have something called a home. Real Estate business was in a boom, and financial agents thought that there wasn’t a better time to give away loans. The Household sector was given a boost with increased monetary supply by commercial financial companies, and people were given loans regardless of the credit rating they received....   [tags: Economics]

Free Essays
1903 words (5.4 pages)

India, the World Bank, and the IMF Essay

- Throughout the short history of an independent India, they have relied upon loans to grow their economy. Due to their prior colonization by Great Britain, they received most of their economy from Britain and there was no true need to receive loans. Since the independence of India from its mother- country, India has strongly relied upon the IMF and World Bank to grow its economy to the booming status that it has today. Until the middle of the 20th century, British investment and trade that was introduced by the British fueled India’s economy....   [tags: The Economy India]

Free Essays
997 words (2.8 pages)

Essay on The Indian Independence Movement Of India

- In the 17th century, the expanding British arrived in India and, after taking a small portion of land; they formed the East India Company. In 1818, the British controlled most of the Indian subcontinent and began imposing their ideas and ways for its residents, including different succession laws that allowed the British to take over a state with no successor ad gain its land and armies, new taxes, and monopolistic control of industry. The British also collaborated with Indian officials to increase their influence in the region....   [tags: Indian Rebellion of 1857, British Raj, India]

Better Essays
1309 words (3.7 pages)

The Between India And The Reserve Bank Of India Essay

- The size of the financially excluded population in the world is massive: according to the United Nations, roughly 2.5 billion people around the globe lack access to formal financial services i.e. Banking services – such as a bank account, credit, insurance, a safe place to keep savings and a protected and effective means to receive social benefit payments – through a registered financial institution. Though this problem is universal, the level of financial exclusion has assumed more horrific dimensions in developing countries like in India....   [tags: Bank, Financial services, Banking]

Better Essays
1270 words (3.6 pages)

Macroeconomic Overview of the Mid-term Review of Annual Policy Essay examples

- Macroeconomic Overview of the Mid-term Review of Annual Policy Gross Domestic Product (GDP): The GDP at the present scenario hovers around 7.9% whereas in the previous year it was at a staggering 9.2%. Taking this into account, the GDP growth forecast has been revised to a rate of 7.5-8%. Inflation: On the basis of Wholesale Price Index: Inflation which is hovering around 11% at present is expected to be controlled to 7% around within March, `09. In the medium term the target is to decrease inflation to 5%, keeping in mind the global rate of around 3%....   [tags: Economics India Economy]

Free Essays
1167 words (3.3 pages)

The Civilizations Of India And China Essay

- The civilizations of India and China are unique. Despite their colonization by British rule, there are existing cultural and religious aspects to their respective regions. In India, British colonization started with the East India Company, which brought several new concepts to the area. These concepts include private property, the English language, and liberal political philosophy. The British lasting influence is incorporated with modernization and technology: the telegraph, print media, the postal system, and the railroad....   [tags: India, Indian National Congress]

Better Essays
969 words (2.8 pages)

Indian Banking Sector Essay

- Introduction (Graphics Not Included) This report aims to provide an overview of banking sector in India for the purpose of expansion planning. The overview will be broadly divided into two parts: Indian Banking system and Bank-like financial institutions. For each type of banking institutions, a brief introduction, some recent statistics and corresponding functions will be included. The outline of this report is as follows: 1. Indian Banking system 1.1 Central Bank – Reserve Bank of India (RBI) 1.2 Commercial Banks - Public sector Banks - Private Banks - Foreign Banks 1.3 Co-operative Banks - Primary Credit Societies - Central Co-operative Banks - State Co-operative Banks 1.4 Regional...   [tags: India Bank]

Free Essays
1639 words (4.7 pages)