Authors
Manish Singh Baghel
Abstract
Bank play a very significant role in monetary growth of country in modern’s economy system. Bank gather the extra saving of individual and allow them accessible for the purpose of investment. It also generate new request payments in development of permitting purchasing investment and loans to refuges and simplify trade in outside and inside country. According to RBI, the investment sector of India remains appropriately well-regulated and capitalized. In harmony with Reserve Bank of India Act 1934, RBI was well-known in year 1935. This bank is the central bank of India that is trusted with the multi-dimensional role. Reserve Bank of India was a private shareholder’s company which was nationalized in 1949. The central bank arranged in standard support to 10 small finance bank and 11 payments banks in 2015-16 in the month February. RBI’s recent procedures may go an elongated in mode of helping the rearrangement of the local banking industry. In present study, discuss about the banks role in economic developing countries. Keywords: Reserve Bank, Deposit, Economic Development, Capitalized
Introduction
Bank is considered as play one of the significant and important part in the overall evolution and growth of both the economic and monetary aspect of the country. It include numerous functions such as lending loans, accepting deposits, saves large amount of money safely etc. Bank is helpful in dealing with the issues of money in both the urban and rural places. The public deposit the cash and also burrow money from different sources for the purpose of raising Working Capital Funds and with the interest and related aspects they pay cost on raised funds. For the purpose of recovering this amount of cost and to fulfil administrative and other related expenses for manner of gaining profit and making investment, the banks have to concern with the working capital funds. It is very difficult of any country and its development when there is no effective banking system. The funds provided are helpful in giving loans to the industries and hence making useful investments. As per the fact, India is not only considered as chief self-governing republic but concern as well with the enormous economic development. Conferring to the KPMG Confederation of Indian Industry (CII) joint report, in India, the banking sector is measured to form the 5th largest by the year 2020. It is also seen that 17% growth rate is increase at a compound annual in coming year that is stated by reporter. This basically shown an important impact on the banking area after the post economic globalization and liberalization.
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| APA Style | Baghel, M. S. (2019). The Role of Bank in developing Economic Countries. Academic Journal of Economic and Finance, 1(1), 16-20. |
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