Indian Banking Industry

[w2003204]

As announced by RBI, the scheduled commercial banks in India have done away with PLR system and have switched over to base rate system last week. Do you think that this will add transparency to the credit decisions of the banks or will it curtail their flexibility and ultimately be detrimental? Pl. come up with your ideas.

 

[dimpy.handa]

The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. As far as the present scenario is concerned the Banking Industry in India is going through a transitional phase.