Achievements of Nationalized Banks in India! Various achievements of banks in the post-nationalisation period are discussed below: (A) Development of Banking Industry: 1. Lead Bank Scheme: The lead bank scheme was introduced by the Reserve Bank of India towards the end of 1969 with the objective of enabling the commercial banks to assume the role of leadership for the development [...]
The following points highlight the role of commercial banks in developing the economy. The roles are: 1. Accelerating the Rate of Savings and Capital Formation 2. Mobilisation of Resources and Granting of Adequate Credit for Development 3. Credit for the Priority Sectors 4. Involvement in Development Planning 5. Strengthening Institutional Facilities 6. Promoting Growth with Stability. Role # 1. Accelerating [...]
This article will guide you about how commercial banks create credit (money). The money supply of a country consists of notes and coins in circulation and bank deposits. The government itself can create money by issuing more notes and coins through its central bank. However, (commercial) banks can also create money by creating bank deposits. Let us examine how this [...]