The evolution of Indian banks can be divided into several key phases: Pre-Independence (1770-1947): The first bank, Bank of Hindustan, was established in 1770. By the 19th century, major banks like the Bank of Bengal and Bank of Bombay emerged, leading to the formation of the Imperial Bank, wRead more
The evolution of Indian banks can be divided into several key phases:
Pre-Independence (1770-1947): The first bank, Bank of Hindustan, was established in 1770. By the 19th century, major banks like the Bank of Bengal and Bank of Bombay emerged, leading to the formation of the Imperial Bank, which later became the State Bank of India.
Post-Independence (1947-1991): The government nationalized 14 major banks in 1969 to enhance financial inclusion. The Banking Regulation Act of 1949 laid the foundation for modern banking.
Liberalization (1991-Present): Economic reforms encouraged private and foreign banks, leading to the establishment of institutions like ICICI and HDFC. Recent advancements include digital banking and the introduction of small finance banks to serve underserved populations
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Balance of Payments: The balance of payments is an indication to a country's economic development, recording financial exchanges with the world across its borders. This complex ledger typically spans a year and records every economic exchange, from the goods that cross borders to the investments thaRead more
Balance of Payments:
The balance of payments is an indication to a country’s economic development, recording financial exchanges with the world across its borders. This complex ledger typically spans a year and records every economic exchange, from the goods that cross borders to the investments that shape our future.
A balance of payments has two important components:
1. Current Account: A current account shows a nation’s everyday economic operations. It tracks activities such as the buying and selling of goods and services, the earnings of its citizens working in other countries, and financial assistance given for development.
A country with a positive current account balance has more revenue than expenses. A nation has a deficit and must borrow money if, on the other hand, its total spending exceeds its income.
2. Capital Account: This section of the balance of payments narrates the extended tale of a nation’s wealth. It oversees the flow of capital and credit, which is critical to the health of economic expansion and progress.
An excess indicates that there’s a greater inflow of foreign capital compared to outflow. A deficit indicates the opposite. This balance sheet shows whether a country is attractive for foreign investment or whether the country is making foreign investments.
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