Top 5 Policies That Shaped Banking In 2014
BANGALORE: The banking sector was given a facelift not just with matters relating to policies that gave banks smooth transactions or business windows but also in terms of uprooting corruption and illegal activities. Many young banks or new ones had the freedom to function without disruption. Banks were also given a new clause for bank loan irregularities. For a better understanding of how the banks have grown in the past one year, here are some of the most important policies that made the difference with input from Economic Times.
Appointment policies: It was to a shock that many banks that are state-run appoint executives and managers through bribery. If this wasn’t enough a new report and investigation also brought to light how people secured loans through underhand dealings. This is or was the state of banks but this year banks were rescued and a strict policy for appointment was set in place.
These corruptions came to light when top executives for certain banks quit without reason. To name a few, one of the most curious case was when Archana Bhargava, chairperson of United Bank of India quit and the reasons are unknown till today. Later SK Jain chairperson of the Syndicate bank was arrested for bribery. These are just a few of the developments that came to light.
New banking licenses: For years banking license privilege was not issued to other variants of business except for exclusive bankers but that came to an end this year. Finally, RBI gave banking license rights to two houses out of the 25 applicants for this right. The two lucky houses were IDFC- an adverse financing servicing firm for infrastructure financing and Bandhan- the largest micro lender in the country.
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