Vinimaya Vol. XL No. 2 July – September 2019
· Bank Nationalisation in India: A Journey of Five Decades
– V S Kaveri
The year 2019 marks the five-decades of nationalisation of the major, public sector banks in India. The banking sector, in its long journey witnessed different phases of development and made incredible achievements in various fields of banking. thanks to the reforms introduced by the Government and the regulations and guidance given by the Reserve Bank of India from time to time. While reforms did pay a rich dividend in enabling banks to offer better banking, they are currently experiencing several challenges that include: high cost of operations, slippage in loan asset quality, stress on profitability, low capital base, declining quality of compliance, growing number of frauds, etc. Therefore, the major challenge before the banking system is to remain financially sound and competitive in the coming days for which suitable strategies have to be developed. Towards this end, this article attempts to review the journey of banking in India during the last fifty years and offer suggestions for the sector to become more competitive by 2022 which will mark India's 75th year of independence.
· Surging Global Debt: Risks to the economy
– Pradeep Kumar Pattnaik & Arif A Khan
The global financial crisis in 2008 forced the authorities to adopt extraordinary measures like injecting massive amounts of liquidity to create loose financial conditions, to stimulate growth and recovery. The world economy has regained momentum, although recovery also led to an accumulation of debt in all categories. The global debt has hit an alarmingly high level, having touched a staggering level of $247 trillion in the first quarter of 2018. The unprecedented record global debt equals 318 per cent of the global GDP. Servicing these debts require rising incomes, while an expanding trade war, punitive tariffs and trade restrictions will make it harder for borrowers to pay their debts. The dangers are worldwide and not restricted to the developed nations only. The debts of some "emerging market" countries seem vulnerable to rollover risk. The article is an attempt to study the sectoral distribution of debt both in developed and emerging markets, review the past debt crises and analyse the stress indicators which could disrupt market access and destabilize economic activity as a result of the sudden tightening of global financing conditions.
· Digital Payments in India – A Business Perspective
– Pushpa Bhatt
Digital payments (e-payments, m-payments) are internet enabled payment instruments. There is an increase in the share, by volume and value, of non-cash segment (excluding banking payment instruments), led by cards and digital payments in the payment industry. Digital payments bring some benefits to the economy.
Researchers have been profiling the sector by enumerating the e-payment instruments. An attempt made in this study to provide a theoretical basis for the digital payments sector. Globally technology, enabling regulations, demanding consumer expectations and new space of payment service providers are the drivers for digital payments. India follows this trend. The attributes of Indian digital payment instruments are identified. A comparative profile of digital payment instruments is attempted. An attempt is made to describe the digital payments market, the segments and selected behavioral aspects thereof. Finally the future of the Indian digital payment industry is described.
The study helps the payment service providers in identifying business opportunities, policy makers in designing proactive policies and academicians in addressin the research needs of the sector.