RBI’S Decision to counter the corona virus impact on economy
RBI’S Decision to counter the corona virus impact on economy Indian Banking industry which is almost 200 years old. Since the beginning of the reforms in 1991, it has been expanded and modernized ( KPMG 2017 ) as certain that the Banking sector is poised to become the fifth largest banking industry in the world in the year 2020 and will be the third largest by 2025.There are currently 34 Banks in India, out of which 12 are Public sector Banks. 14 Banks were nationalized in 1969 and 6 Banks were nationalized in 1980. The Reserve Bank of India announced in August 2019 that banks can have an exposure of up to 20 per cent of their Tier 1capital to a single NBFC. This limit was 15 per cent earlier. This helped boost credit flow as bank funding to NBFCs grew by 30 per cent year on year. The Government has taken a series of measures to ge...