MUHAMMED SALIM. A.P

1) Saving Banks Saving banks are established to create saving habit among the people. These banks are helpful for salaried people and low income groups. The deposits collected from customers are invested in bonds, securities, etc. At present most of the commercial banks carry the functions of savings banks. Postal department also performs the functions of saving bank. 2) Commercial Banks Commercial banks are established with an objective to help businessmen. These banks collect money from general public and give short-term loans to businessmen by way of cash credits, overdrafts, etc. Commercial banks provide various services like collecting cheques, bill of exchange, remittance money from one place to another place. In India, commercial banks are established under Companies Act, 1956. In 1969, 14 commercial banks were nationalised by Government of India. The policies regarding deposits, loans, rate of interest, etc. of these banks are controlled by the Central Ba...

Governments at the centre since independence focused on providing easy access to finance and poverty alleviation. The branch expansion programmes were started in the country since the nationalisation of banks in 1969. Expansion of rural credit market has been the centre of financial policies in developing countries. Reach of banking services in rural areas is the precursor of growth. In order to be perfect rural credit market, there should be availability of credit at nominal rate of interest, easy access for credit, less complexities and availability of sufficient fund.             India’s credit markets were highly unorganised. People resorted non-institutional lenders at high rate of interest especially before the bank nationalisation in 1969. They have become indebted such indigenous money lenders. Meanwhile, Government of India came up with the massive nationalisation of 14 big private sector banks. It faci...

Crude oil price has been on surge for the past few months due to multiple factors. The deliberately tightened crude oil supply by the OPEC and allies, significant increase in demand in North America, geopolitical tension among West Asian countries, improving global economic growth, US Government's stand against Iran compelling their allies to cut short the import and unexpected decline in production in Venezuela are the major factors behind the price resurgence that happened to be in favour of the oil producing countries (The Guardian). The price of crude oil per barrel stage by stage hiked from nearly $ 46 in June 2017 to $78 in June 2018. The cruising crude oil price in the international market will pretty affect Indian economy since it has been the single largest import item in the country. India produces hardly less than one fourth of the total consumption. Importers' demand for US Dollar has increased significantly with the recent surge in crude oil price. Thus it is pret...