Topic Details (Notes format)

Banking Sector in India

Subject: Economics

Book: Comprehensive Indian Economy

India’s banking network has undergone transformations from nationalization aimed at financial inclusion, to post-1991 deregulation encouraging competition. Key pillars include the RBI’s regulatory oversight, commercial banks (public and private), regional rural banks, and cooperative banks. Topics like financial inclusion (Jan Dhan Yojana), digital payments, non-performing assets, and bank recapitalization are crucial. Prelims often test definitions—like CRR, SLR—while mains might focus on structural reforms, Basel norms, or the role of banking in economic growth. For robust exam prep, track changing regulations and government strategies to revitalize the sector in light of global financial challenges.

Practice Questions

What is the main objective of disinvestment in public sector undertakings (PSUs)?

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Which of the following is NOT a component of Aggregate Demand?

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What is meant by “liquidity trap”?

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Which of the following is a feature of a command economy?

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What does the Gini Coefficient measure?

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What does “primary sector” of the economy include?

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What is the objective of the Goods and Services Tax (GST)?

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Which of the following is a feature of monopolistic competition?

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Which organization publishes the Human Development Index (HDI)?

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Which of the following is a characteristic of “perfect competition”?

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