Introduction of ‘Indradhanush’ to Revolutionise Banking in India : Ken Research REQUEST FOR SAMPLE REPORT Request For sample Report × Report Title Name Email Designation Phone No Comapny Name Comapny URL Country -- Please Select Your Country -- Afganistan Africa Albania Algeria Andorra Angola Anguilla Antigua and Barbuda Argentina Armenia Aruba Asia Australasia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire Bosnia Herzegovina Botswana Brazil BRICS British Virgin Islands Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Central and South America Chad Chile China Colombia Comoros Congo Costa Rica Cote d'Ivoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Europe European Union Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Global Great Britain Greece Greenland Grenada Guadeloupe Guam Guatemala Guerney & Alderney Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Ivory Coast Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Man (Island of) Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Middle East Minnesota Moldova Monaco Mongolia Monserrat Montenegro Morocco Morroco Mozambique Myanmar Namibia Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue North America North Korea Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Helena Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa Samoa (American) San Marino Sao Tome and Principe Saudi Arabia Scandinavia Senegal Serbia Seychelles Sierra Leone Singapore Sint Maarten Slovakia Slovenia Solomon (Islands) Somalia South Africa South Korea South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Islands Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Timor Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Virgin Islands Western Sahara Yemen Zambia Zimbabwe Requirement Submit The banking system in India is extremely dynamic in nature, with continuous introduction of various measures and reforms in the sector by the Govt. of India and RBI to enhance industry outlook through efficient regulatory framework and to widen the banking industry coverage in the country. Over last few couple of years, the banking system in India is consistently witnessing huge transformations from innovative banking models like opening up of payment banks to a wave of reforms aiming at the restructuring of the banking industry in India.Among various reforms, some notable ones include: ‘Indradhanush’ framework aimed at strengthening the PSB of India mainly through recapitalization, greater empowerment, increased accountability and de-stressing of impaired loans. Union Govt. has also focused on consolidation of smaller banks into larger one during Union Budget 2016-17. To extend the coverage of banking facilities in the country, RBI in August 2015, granted in principle approval to 11 entities for opening payment banks in India. However, they are allowed to perform only selected banking services such as accepting deposits, issuing debit cards and offering payments and remittances. As per a study conducted by the SBI, the creation of these payment banks will make available Rs 1,400,000 crore annually to fund the infrastructure projects in the country. Also, RBI has in principle issued licences to 10 entities for opening small finance banks. Both these payment banks and micro finance banks are expected to encourage the financial inclusion scheme of the Indian Govt. by extending financial services to financially excluded part of the population such as low income household, labourers and to rural people. These banks apart from increasing competition in the banking industry will also support large banks in expanding their coverage to rural areas. To restructure the existing banking system in India, several reforms have been introduced by the government and RBI. Due to declining profitability, stressed assets and low capital positioning of PSBs in India, Govt. has launched ‘Indradhanush’ framework to revamp the PSBs which accounts for almost 70% of the Indian banking system. The framework aims at restructuring of the PSBs mainly through recapitalization which includes around Rs.1,80,000 crore of extra capital infusion in next four years up to FY 2019. 40% of this fund will be allocated to top 6 banks, 20% will be performance based and rest banks not getting any fund will be given preferences. To de-stress PSBs of NPAs created because of stalled projects,Project Monitoring Group will be established along with the compulsion of NPA disclosures rules. PSBs are also empowered to take their decisions independently with no govt. interference. However, their accountability has also been increased by the announcement of KPIs to judge their performance. To implement these reforms, Govt. is taking various actions while RBI is coming up with various schemes. As a step towards recapitalization, Central govt. has announced an injection of Rs. 22,915 crores into 13 PSBs.SBI will receive the largest portion of the fund followed by IOB and PNB. This infusion is expected to boost lending by PSBs which are presently facing declining credit growth due to high NPA and low capital. Also for de-stressing the PSBs, RBI has introduced ‘Scheme for Sustainable Structuring of Stressed Assets’, the S4A formulation. It is a framework which foresees the sustainable level of debt of a stressed borrower and splits outstanding debt into sustainable debt and equity instruments. Also, RBI aims at increasing consolidation of the banks along with privatization of the PSBs. As a step towards it, Govt. has approved the merger of SBI and 5 associate banks along with BMM. This step aims to meet the infrastructural financing needs of the country and also to bring Indian banks at par with global banks in terms of size. Presently no Indian Bank is listed among top 50 banks of the world even as per size. Innovations in the banking model to develop and extend the coverage of Indian Banking System along with the introduction of several reforms on the existing banking industry will make the banking sector even more resilient to external shocks and hence help the Indian Economy to stand and perform strongly even during global slowdown. For more details visit : https://www.kenresearch.com/tag/banking-financial-services-and-insurance/payments/178.html Related Reports : https://www.kenresearch.com/tag/banking-financial-services-and-insurance/remittance/177.html https://www.kenresearch.com/banking-financial-services-and-insurance/insurance/SC-93-48.html Tags: Bill Payment Industry Trends, Global Mobile Payment Market, Payments Market Report
