MACROECONOMICS PROJECT

Group-11

Submitted By

Agastin K (1107)

Bharath V (1119)

Chandan Gopalakrishnan (1121)

Ghulam Mohamad (1133)

Jinshid K (1135)

Maneesh Ashutosh (1141)

Nimavath Adarsh (1152)

Rushwanth Roshan A D M (1168)

Samiran Arora (1170)

Vishnuduth A S (1197)
History of Banks

The merchants of the world, who provided grain loans to farmers and
traders who transported products between towns, are considered the first
banks in the history of banking. This occurred around the year 2000 BCE in
Assyria, India, and Sumeria. Lenders headquartered in temples later
provided loans while taking deposits and handling currency exchange in
ancient Greece and the Roman Empire. Ancient Chinese and Indian
artefacts and archaeology both include evidence of money lending.

Many academics believe that the origins of the contemporary banking

system may be found in Italy throughout the Middle Ages and the
Renaissance, specifically in the wealthy towns of Florence, Venice, and
Genoa. In Florence in the fourteenth century, the Bardi and Peruzzi
Families controlled the banking industry and opened offices across most of
Europe. The Medici Bank, founded by Giovanni Medici in 1397, was the
most well-known bank in Italy. Banca Monte Dei Paschi di Siena, with its
headquarters in Siena, Italy, has been in continuous operation since 1472,
making it the oldest bank still in existence. The Banco di Napoli, with its
headquarters in Naples, Italy, with a history dating back to 1463, had the
title of oldest bank that was still in existence until the end of 2002.

In the Holy Roman Empire and northern Europe in the 15th and 16th
centuries, banking evolved from northern Italy. Several significant
innovations that occurred in Amsterdam during the Dutch Republic in the
17th century and in London starting in the 18th century came after this. The
20th century saw substantial changes to the way banks operated as well as
a huge expansion in the size and geographic reach of banks because to
advancements in telecommunications and computing. Many banks failed
because of the financial crisis of 2007–2008, including some of the biggest
banks in the world. This sparked intense discussion over bank regulation.

21st century

The early 2000s were characterised by the merger of pre-existing banks

and the entry of non-bank financial institutions into the market. Large
corporate actors were starting to enter the financial services industry,
providing traditional banks more competition. The major services provided
were loans and credits, securities, mutual, money market, and hedge
funds, as well as insurance and pension plans. In fact, four non-banks were
among the 15 largest financial services companies in the world by market
capitalization by the end of 2001.

The technological advancements in banking over the previous 30 years

came to a head in the first decade of the twenty-first century, when online
banking significantly replaced traditional banking. Beginning in 2015,
innovations like open banking established standardised APIs and security
frameworks and made it simpler for third parties to access bank transaction
data.

In the first few decades of the twenty-first century, the process of financial
innovation also made great strides, which raised the profile and profitability
of nonbank financing. The Office of the Comptroller of the Currency (OCC)
has encouraged banks to investigate other financial instruments to diversify
their business and strengthen the financial health of the banking sector as
a result of this profitability, which was previously limited to non-banking
industries. Therefore, the distinction between various financial institutions is
increasingly disappearing as the distinctive financial tools are investigated
and implemented by both the banking and non-banking industries. For
instance, the OCC blurred the line between traditional banking and the
cryptocurrency ecosystem in 2020 when it issued several interpretive
letters outlining national banks' rights to custody cryptocurrency, offer
banking services to cryptocurrency businesses, as well as employ
blockchain innovations like stablecoins as settlement infrastructure.
Additionally, in 2021, Anchorage Digital, a platform for institutional digital
assets, received its first federal banking charter from the OCC.

Banking in India

In India, modern banking began in the middle of the 18th century. Among
the early banks were the General Bank of India, founded in 1786 but failing
in 1791, and the Bank of Hindustan, founded in 1786 and liquidated in
1829–1832.

The State Bank of India is the biggest and oldest bank that is still in
operation (SBI). It was established as the Bank of Calcutta in the middle of
June 1806. It was called the Bank of Bengal in 1809. The Bank of Bombay
and the Bank of Madras, both established by presidency governments in
1840 and 1843, respectively, were merged with Bank of Bengal in 1921 to
become the Imperial Bank of India, which later changed its name to the
State Bank of India in 1955. Prior to the Reserve Bank of India being
founded in 1935 under the Reserve Bank of India Act, 1934, the presidency
banks and its successors served as quasi-central banks for several years.

The State Bank of India (Subsidiary Banks) Act, 1959 gave the State
Banks of India jurisdiction over eight state-affiliated banks in 1960.
However, on April 1, 2017, the affiliated banks' merger with SBI became
effective. The Bank of India was one of the fourteen large commercial
banks that the Indian government nationalised in 1969. Six additional
private banks were nationalised in 1980. Most lenders in the Indian
economy are these nationalised banks. They control the banking industry
due to their size and extensive networks.

Scheduled and non-scheduled banks are the two primary categories of the
Indian banking industry. The scheduled banks are those included in the
Reserve Bank of India Act, 1934's 2nd Schedule. Nationalized banks, State
Bank of India and its affiliates, Regional Rural Banks (RRBs), foreign
banks, and other Indian private sector banks are further divided into the
scheduled banks. On April 1, 2017, the SBI combined its Associate banks
into one entity to form the largest Bank in India. With this transaction, SBI is
now ranked 236 globally by the Fortune 500 index. Scheduled and
unscheduled commercial banks subject to the 1949 Banking Regulation Act
are both referred to as commercial banks.

In general, India's banking industry is fairly developed in terms of supply,

product selection, and reach, while reaching rural areas and the poor
continues to be difficult. The National Bank for Agriculture and Rural
Development (NABARD), which offers services including microfinance, and
the State Bank of India, which is increasing its branch network, are two
government-developed initiatives to solve this.

Contribution to the Indian economy- Banking & Finance sector

The banking sector plays a crucial role in facilitating credit, investment, and
infrastructure, especially in a middle-income economy like India. The
country is not only home to nearly 1.4 billion inhabitants, but also to a vast
network of banks and non-banking financial companies (NBFC) to execute
a diverse range of financial services for individuals, companies, and small
enterprises. The Reserve bank of India is the primary regulator of banks in
India.

The Indian banking system consists of 12 public sector banks, 22 private

sector banks, 46 foreign banks, 56 regional rural banks, 1485 urban
cooperative banks and 96,000 rural cooperative banks in addition to
cooperative credit institutions As of September 2021, the total number of
ATMs in India reached 213,145 out of which 47.5% are in rural and semi
urban areas.

In 2020-2022, bank assets across sectors increased. Total assets across

the banking sector (including public and private sector banks) increased to
US$ 2.67 trillion in 2022.

In 2022, total assets in the public and private banking sectors were US$
1,594.51 billion and US$ 925.05 billion, respectively.

During FY16-FY21, bank credit increased at a CAGR of 0.29%. As of

FY21, total credit extended surged to US$ 1,487.60 billion. During
FY16-FY21, deposits grew at a CAGR of 12.38% and reached US$ 2.06
trillion by FY21. Bank deposits stood at Rs. 165.74 trillion (US$ 2.11 trillion)
as of May 20, 2022.

According to India Ratings & Research (Ind-Ra), credit growth is expected

to hit 10% in 2022-23 which will be a d
ouble-digit growth in eight years. As of July 29, 2022 bank credit stood at
Rs. 123.69 lakh crore (US$ 1,553.23 billion).

Credits: India Brand Equity Foundation (IBEF)

Some of the recent developments that have changed the banking sector’s

workings are:

● Telebanking
● Doorstep banking
● National Electronic Funds Transfer (NEFT)
● Real-Time Gross Settlements (RTGS)
● Electronic Clearing Services (ECS)
 ● Internet banking, etc.

International Scenario

Banks have recovered from the pandemic with strong revenue growth, but
the landscape has changed dramatically. A series of interrelated
shocks—the geopolitical impact of the pandemic and the lingering
economic and social impacts—is exacerbating vulnerability. Bank
profitability is expected to reach a 14-year high in 2022, with a return on
equity of 11.5-12.5% ​(Figure 1). Global sales increased by $345 billion.
This growth was fueled by a sharp rise in net profit margins as interest
rates rose after years at the cyclical low end. Today, the global banking
system remains at an all-time high with Tier 1 capital adequacy ratios of
14-15%.
Over the next five to ten years, market pressures and changes, including
technological changes that disrupt traditional banking, will lead to
fundamental structural disruption. Banks must improve their short-term
resilience and invest and innovate long-term to pave the way for future
profitability, stronger growth, and higher valuations. In the short term, his
four strategic goals will help build resilience:

Financial resilience. The best-performing banks should aim for a 35-40%

cost/income ratio with a net income structure that is largely unaffected by
interest rates and cost of risk. Operational resilience. This means reducing
or eliminating our presence in high-risk countries and establishing
exceptional risk management practices. Digital and technology resilience.
Cyberattacks remain a serious risk, and the best banks have
well-protected, forward-looking technology infrastructures and excellent
data security. Organizational resilience. The best-performing banks have
fast response times and invest in attracting, retraining, and retaining top
talent. In the long term, banks will need to move from traditional business
models to more future-proof platforms, potentially separating business units
such as day-to-day banking and complex financial and advisory services.
Banks can consider several approaches. For example, you can focus on
building deep emotional connections to foster highly differentiated customer
relationships. You can also develop your own data and insights about your
customer groups, including using advanced analytics. A third option is to
make big and clear bets on resource and capital allocation. Fourth, banks
can create new customer access and revenue streams such as B.
Non-balance sheet subscription, payment, and distribution fees. Banks can
also focus on innovation with the aim of creating a truly entrepreneurial
culture and attracting and retaining the talent needed to participate in such
a culture. Finally, as we will see in the next section, banks can develop
targeted strategies for changing environments.

LEADERS- Banking sector:

1. HDFC Bank

Incorporated in 1994, HDFC Bank is one of the earliest private sector

banks to get approval from RBI in this segment. HDFC Bank has a pan
India presence with over 5400+ banking outlets in 2800+ cities, having a
wide base of more than 56 million customers and all its branches
interlinked on an online real-time basis.

HDFC Limited is the promoter of the company, which was established in

1977. HDFC Bank came up with its 50 crore IPO in March 1996, receiving
55 times subscriptions. Currently, HDFC Bank is the largest bank in India in
terms of market capitalisation (Nearly Rs 8.8 Lac Cr.). HDFC Securities and
HDB Financial Services are the subsidiary companies of the bank.

HDFC Bank primarily provides the following services:

● Retail Banking (Loan Products, Deposits, Insurance, Cards, Demat

services, etc.)
 ● Wholesale Banking (Commercial Banking. Investment Banking, etc.)

● Treasury (Forex, Debt Securities, Asset Liability Management)

Stock analysis:

· The primary source of Income is interest earned on various loans given

to individuals and corporates. HDFC Bank earned Rs 1,27,753.12 Cr.

revenue in the latest financial year. It has posted decent revenue growth

of 8.88 % in the last 3 years.

· Currently, the company has a CASA ratio of 48.17 %. Its overall

cost of liability stands at 3.20 %. Also, the total deposits from these
accounts stood at Rs 15,59,217.44 Cr.
· The Lender is efficiently managing its overall asset portfolio.
The Gross NPA and Net NPA stood at 1.17 % and 0.32 %,
respectively, as of the latest financial year.

Type Private Company

Industry Financial Services

Founded 1994
Key Person Atanu Chakraborty (Chairman)

Headquarters Mumbai – India

Area served India

Products Banking

Asset ₹2,122,934 crore (US$280 billion – 2022)

Number of Branches 6,378 (Jun. 30, 2022)

Number of ATMs 16,087 (Across India)

Number of Employees 1,52,511 (2022)

2. State Bank of India (SBI)

The State Bank of India, or the SBI, is a public-sector bank and financial
service statutory body. It is the largest commercial bank in India in terms of
assets, profits, deposits, number of branches and employees. The SBI
came into existence on July 1, 1955. It has its headquarters in Mumbai,
Maharashtra. Being one of the largest commercial and systemically
important banks, SBI shares a greater responsibility and role as compared
to other banks. The functions performed by SBI are divided into two
categories- ordinary banking functions and central banking functions.

Stock Analysis:
· SBI has a 23% market share by assets and a 19.77% share in
the loans and advance market.
· It also ranked 43rd on the list of the largest bank in the world list
in 2020.
· The company reported the highest ever standalone net profit of
Rs 35,374 crores in FY22 with a net interest income of Rs
1,17,000 crore, which saw a healthy growth of 9.12% over the
previous year.
· The cash flow and profit margins of the company are also rising.
The promoter's pledge is zero, and the gross NPA declined from
previous years and stood at 3.97%.
· The Lender is efficiently managing its overall asset portfolio.
The Gross NPA and Net NPA stood at 3.97 % and 1.02 %,
respectively, as of the latest financial year.
· Currently, the company has a CASA ratio of 44.52 %. Its overall
cost of liability stands at 3.46 %. Also, the total deposits from these
accounts stood at Rs 40,51,534.12 Cr.

Type Public Company (Government of India), Top Government

Banks in India

Industry Banking, Financial Services

Founded 2nd June 1806 – Bank of Calcutta

27th January 1921 – Imperial Bank of India

1st July 1955 – State Bank of India

2nd June 1956 – Nationalisation

Key Person Dinesh Kumar Khara

(Chairperso
n)

Headquarter Mumbai – India

s

Area served Worldwide

Products Consumer banking, corporate banking, finance and

insurance, investment banking, mortgage loans, private
banking, private equity, savings, securities, asset
management, wealth management, credit cards

Asset ₹4,987,597 crore (US$624 billion) (2022)

Number of Over 24000 branches in India & 191 offices in 36

Branches countries across the world
Number of 62,617
ATMs

Number of 245,642 (2022)

Employees

3. ICICI Bank

ICICI Bank Ltd. is a leading private-sector bank in India. ICICI Bank was
originally promoted in 1994 by ICICI Limited. ICICI was formed in 1955 at
the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term
project financing to Indian businesses. Until the late 1980s, ICICI primarily
focused its activities on project finance, providing long-term funds to a
variety of industrial projects. With the liberalisation of the financial sector in
India in the 1990s, ICICI transformed its business from a development
financial institution offering only project finance to a diversified financial
services provider that, along with its subsidiaries and other group
companies, offered a wide variety of products and services. As India’s
economy became more market-oriented and integrated with the world
economy, ICICI capitalised on new opportunities to provide a wider range of
financial products and services to a broader spectrum of clients.

Stock Analysis:

· The Bank has a healthy ROA track record. The ROA of ICICI
Bank is at 1.77 %.
· Currently, the company has a CASA ratio of 48.70 %. Its overall
cost of liability stands at 3.32 %. Also, the total deposits from these
accounts stood at Rs 10,64,571.61 Cr.
 · The Lender is efficiently managing its overall asset portfolio.
The Gross NPA and Net NPA stood at 3.76 % and 0.81 %,
respectively, as of the latest financial year.

Type Private Sector

Industry Banking & Financial Sector

Founded 1994

Key Person Girish Chandra Chaturvedi

(Chairperson
)

Headquarter Mumbai – India

s

Area served Worldwide

Products Credit cards, consumer banking, corporate banking,

finance and insurance, investment banking, mortgage
loans, private banking, wealth management, personal
loans, payment solutions
Asset ₹17.53 lakh crore (US$219 billion) (2022)

Number of 5,275 (2022)

Branches

Number of 13,463
ATMs

Number of 1,30,170 (2021)

Employees

LAGGARDS- Banking sector:

1. Yes Bank:

Yes Bank, incorporated in 2004 by Rana Kapoor and Late Ashok Kapur, is

a new-age private sector bank. Since its inception, Yes Bank has fructified

into a ‘“Full-Service Commercial Bank” that has steadily built Corporate and

Institutional Banking, Financial Markets, Investment Banking, Corporate

Finance, Branch Banking, Business and Transaction Banking, and Wealth

Management business lines across the country, and is well equipped to

offer a range of products and services to corporate and retail customers. In

the previous year, Yes Bank made it to the news because of facing financial

stress amidst the Covid-19 situation. In November 2021, Yes Bank’s auditor
made a fresh audit when someone from the team opened up about the

irregularities in the bank. It has also been brought into account that the

bank did not release the earnings for December month even though the

deadline has already passed. The total returns of Yes Bank, which was

recorded for July to September, saw a fallout of -49.63%. The fallout is

significant, which made Yes Bank take the number one position among the

worst-performing banks throughout the country.

Stock Analysis:

· In terms of advances, the bank reported an 8.48 % YOY rise. If

you see 3 years of advanced growth, it stands at -9.16 %.
· Currently, the company has a CASA ratio of 31.12 %. Its overall
cost of liability stands at 4.65 %. Also, the total deposits from these
accounts stood at Rs 1,97,191.73 Cr.
● The Lender is inefficiently managing its overall asset portfolio. The
Gross NPA and Net NPA stood at 13.93 % and 4.53 %, respectively,
as of the latest financial year.
● It has posted Poor revenue growth of -13.73 % in the last 3 years.

Type Private Sector

Industry Banking & Financial Sector

Founded 2004
Key Person Sunil Mehta
(Chairperson)

Headquarters Mumbai – India

Area served India

Products Investment Banking Solutions, Yes Property Purchase Credit

Card, Yes First Corporate Credit Card, Loans, Surplus and
Investments, Debt Capital Markets, Digital Banking

Asset ₹273,543 crore (US$36 billion) (2021)

Number of 1000
Branches

Number of 1800
ATMs

Number of 23800 (2021)

Employees

2. Punjab and Sind Bank:

Punjab & Sind Bank was incorporated on June 24, 1908, as ‘The Punjab
and Sind Bank Limited, with its registered office at Hall Bazar, Amritsar,
Punjab, India. The Bank was nationalised under the Bank Acquisition Act
on April 15, 1980, and its name was changed to ‘Punjab & Sind Bank.

Punjab & Sind Bank, which is a GoI undertaking, is one of the six banks
nationalised by the GoI in April 1980, and today, it is one of 19 nationalised
banks in India. In over 100 years of operation, the Bank has significantly
grown its branch network with a presence predominantly in north India.

In August 2021, Punjab and Sind Bank opened up about their status. They
have revealed that they have accumulated a loss of Rs 3,557 crore against
the share premium account of the bank. Share Premium account is a factor
that demonstrates the difference between the face value and the
subscription prices of the shares. On calculating the balance sheet, the
Company recorded a loss against the security premium amount of Rs
4835.11 crore and even recorded a plummeting value of -28.54% in terms
of total returns in 2020. When the NPA values were taken into
consideration, the bank recorded a value of 8.7% in comparison, which is
indicative of poor bank health.

Stock Analysis:

· In terms of advances, the bank reported a 4.41 % YOY rise. If

you see 3 years of advanced growth, it stands at -2.75 %.

● It has posted Poor revenue growth of -6.06 % in the last 3 years.

· Currently, the company has a CASA ratio of 33.81 %. Its overall

cost of liability stands at 4.25 %. Also, the total deposits from these
accounts stood at Rs 1,02,137.01 Cr.
· The Lender is inefficiently managing its overall asset portfolio.
The Gross NPA and Net NPA stood at 12.17 % and 2.74 %,
respectively, as of the latest financial year.

Type Public Sector

Industry Banking & Financial Sector

Founded 1908

Key Person Charan Singh

(Chairperson)

Headquarters New Delhi, India

Area served India

Products Consumer banking, corporate banking, finance and insurance,

investment banking, mortgage loans, wealth management

Asset ₹121,067.55 crores (US$15 billion) (2022)

Number of 1531
Branches

Number of 1450
ATMs

Number of 8862 (2020)

Employees
Government Schemes

Pradhan Mantri Jan Dhan Yojana (PMJDY)

In his Independence Day address on 15 August 2014, the Prime Minister
launched the National Mission on Financial Inclusion. Without a minimum
amount and minimal paperwork, anyone can start a savings account.
PMJDY provides unbanked people with financial education. Six months of
good account or credit history earns a RuPay debit card with Rs. 2 lakh in
accident insurance and an overdraft option. By 9 May 2015, eligible
account holders can receive personal accident insurance through their
bank accounts. Atal Pension Yojana, Bima Yojana, and PMJBY.
PMJDY was risky. 28.70 crore PMJDY accounts are rural, and 23.87 crore
are women (55.47%)
PMJDY deposits more. As of 18.08.2021, PMJDY deposits total Rs.
1,46,230.71 crore. Deposits have doubled since March 2015.

From Jan Dhan to Jan Suraksha

For creating a universal social security system for all Indians, especially the
poor and the under-privileged the Hon’ble Prime Minister launched three
Social Security Schemes in the Insurance and Pension sectors on 9th of
May, 2015.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)

PM PMJJBY accepts 18- to 50-year-olds with bank accounts. Aadhar is
bank KYC. 1 June–31 May. This plan pays 2 lakh rupees upon death. The
annual premium is Rs. 436 and is deducted every 31 May. LIC and other
insurers offer the scheme with bank clearances. 30.06.2022: PMJJBY has
13.11 crore members.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

18-to-70-year-olds can join/enable auto-debit by May 31 for annual

coverage. Aadhar's KYC. The 2 lakh policy covers accidental death and
disability. Auto-debit deducts Rs.20 annually from a bank account. The
scheme is offered by public sector or other general insurers ready to
partner with banks. 30.06.2022: 29.01 crore PMSBY members.

Atal Pension Yojana (APY)

PM announced APY on May 9, 2015. 18-to-40-year-old savings bank/post

office savings bank account holders' pension contributions differ. At 60,
customers receive 1,000, 2,000, 3,000, 4,000, or 5,000 rupees per month.
Subscribers of APY earn a monthly pension. The subscriber's nominee
receives the pension corpus at 60. The government would guarantee a
minimum pension; if contributions yielded a lower-than-expected return, it
would make up the shortfall. Investment returns increase pensions.
The government permits a subscriber's spouse to continue contributing
until the original subscriber turns 60. Until death, spouses get the same
pension. The nominee gets the subscriber's and spouse's pension money
until age 60. 31 July 2021: 321 million APY customers.
Pradhan Mantri Mudra Yojana

8-April-2015 premiere. 'Shishu' lends up to Rs. 50,000. 50,000 to 5.0 Lakhs

under Kishore and 5.0 to 10.0 Lakhs under Tarun. These initiatives aim to
boost young, educated, or skilled people's confidence so they can become
first-generation entrepreneurs. As of 20.08.2021, 16,22,203 crores in 30.7
crores accounts.

Stand Up India Scheme

Standup India debuted April 5. One SC/ST and one woman per bank
branch can borrow between Rs.10 lakh and Rs.1 crore. It may be
manufacturing, services, or agribusiness. At least 2.5 million debtors will
gain. Nationwide Scheduled Commercial Banks offer the loan.
Stand Up India helps women, SC & ST entrepreneurs that lack
advice/mentorship and credit. Institutional lending helps underrepresented
populations start businesses. Serves borrowers.
Stand Up India's Credit Guarantee Fund is collateral-free (CGFSI). Stand
Up assists debtors. Converging central/state strategies Online applications
are accepted (www.standupmitra.in). On 23.08.2021, 1,18,462 accounts
received 26,688 crore.

Pradhan Mantri Vaya Vandana Yojana

The PMVVY protects 60-year-olds and older from a reduction in interest
income due to uncertain market conditions. LIC memberships end on
March 31, 2023.
2020-21 10-year PMVVY returns 7.40%. In subsequent years, the
promised rate of return will be revised on April 1 in line with the SCSS up to
a ceiling of 7.75%, with a further review of the scheme upon breaching this
barrier.
Monthly, quarterly, semiannual, or annual pension payments are possible.
Minimum purchase price is Rs. 1,62,162 for a Rs. 1000 monthly annuity
and Rs. 15 lakh for Rs. 9,250.

Policy/Law Reforms

The government recently took/proposed legislative measures to develop

India's banking sector. The proposed legislation is briefly described here.

i. The “Banning of Unregulated Deposit Schemes and Protection of

Depositors’ Interests Bill”
Unauthorised deposit taking or Ponzi Schemes have been discussed in
Parliament and other forums. In its 21st Report on "Efficacy of Regulation
of Collective Investment Schemes (CIS), Chit Funds, etc.," submitted to the
16th Lok Sabha in September 2015, the Standing Committee on Finance
(SCF) made several recommendations to strengthen the regulatory
framework for unauthorised deposit taking activities. This SCF Report is
available at loksabha.nic.in. The Indian government formed an
Inter-Ministerial Group (IMG) to identify gaps in the existing regulatory
framework for deposit-taking operations and to consider administrative /
legislative actions, including a new statute, to cover all relevant areas of
‘deposit-taking'. IMG has finished its Report and suggested legislative and
non-legislative remedies, including the "Banning of Unregulated Deposit
Schemes and Protection of Depositors' Interests Bill" ("the Banning Bill").
The Government indicated in Budget 2016-17 that it plans to introduce a
comprehensive Central law to deal with unauthorised deposit taking
schemes in 2016-17. This website hosts the IMG Report and proposed
Banning Bill for public feedback.

ii) Central Know Your Customer (KYC) Records Registry

CERSAI is operationalizing a Central KYC Records Registry (CKYCR) to

offer consistent KYC norms and inter-usability of KYC records throughout
the financial sector (as announced in the Union Budget 2014-15). CERSAI
has been designated as the Central KYC Registry by altering PMLA Rules.

(iii) The Negotiable Instruments (Amendment) Act, 2015

The Negotiable Instruments (Amendment) Act, 2015 was enacted on

December 29, 2015. The Amendment Act clarifies jurisdictional difficulties
for filing cases for section 138 of the Negotiable Instruments Act offences
(NI Act). The Amendment Act facilitates filing cases only in a court within
whose local jurisdiction the bank branch of the payee, where the payee
delivers the cheque for payment through his account, is situated, except in
the case of bearer cheques, which are presented to the branch of the
drawee bank, in which case the local Court of that branch would have
jurisdiction. The Amendment Act validates retroactively the revised scheme
for assessing a court's jurisdiction under section 138 of the N.I. Act. The
Amendment Act also mandates case centralization.

iv) The Payment and Settlement Systems (Amendment) Act, 2015

The Payment and Settlement Systems (Amendment) Act, 2015, obtained
the President's assent on 13.05.2015 and took effect on 01.06.2015. The
Payment and Settlement Systems Act, 2007 regulates and supervises
India's payment systems and designates the RBI as the authority for these
and related topics. After the Act was passed, payment systems grew
orderly, and they were authorised based on safety, soundness, efficiency,
and accessibility. After the 2007-08 global financial crisis, the G20 led
reforms of OTC derivatives markets. Trade Repositories and Legal Entity
Identification System are emerging projects. The Payment and Settlement
Systems (Amendment) Act, 2015 amends the Payment and Settlement
Systems Act, 2007 to increase the transparency of the Over-the-Counter
Derivatives market and strengthen the payment and settlement system to
bring it in line with international norms. This will ensure the stability and
transparency of the Indian economy. The amended Act provides I netting
and settlement finality in the event of insolvency, liquidation, or resolution of
the Central Counterparty (CCP), (ii) protection of customers' interests in the
event of insolvency or bankruptcy of prepaid instruments (PPIs)
operators/issuers, and (iii) a legal framework to deal with new
developments, such as Trade Repositories (TRs) and Legal Entity
Identification System (LEIS), as well as plugged gaps

Conclusion

The Leaders in the Banking Sector like HDFC, SBI and ICICI continuously
contribute to the current needs of our country. They showed how crucial
they are to our modern economy. As a primary credit provider, collecting
and safeguarding depositor’s money and handling day-to-day transactions
their contribution is enormous. With the augmentation of digital
technologies, consumers have become more demanding of virtual
experiences in today’s time. The pandemic has only amplified the need for
easy access to banking products, services and information and surged the
need for stress-free access to banking products and services. The future of
banking will be driven by major technological changes and will transform
drastically. The future of banking is ‘Digital’. The bold initiatives, the
Government of India has voiced its intention loud and clear – to make the
banking and financial services sector truly digital. Furthermore, these steps
have conceded incredible results. The transactions through debit and credit
cards, UPI platforms have seen an upsurge, especially over last year due
to the pandemic.