Banking and finance
The Organizational structures of the banking sector in India.
Many Indian banks are brackets.The money market is classified
into three categories: the organized sector (including public,
private and foreign commercial banks and cooperative banks,
as well known, as expected, banks), and the unorganized sector
( Property including individual or family indigenous bankers
and lenders of money or non-banking financial companies (NBFCs)).
The unorganized sector and microcredit are always preferred
over traditional banks in rural and sub-urban areas, particularly
for non-productive, as the ceremonies and short-term loans.
Prime Minister Indira Gandhi 14 banks nationalized in 1969,
followed by six more in 1980 and made mandatory for banks
to provide 40% (since reduced to 10%) of their net credit
to priority sectors such as agriculture, small-scale industry,
retail trade, small businesses, etc. to ensure that banks
meet their social objectives and development. Since then,
the number of bank branches has increased from 10120 in 1969
to 98910 in 2003 and the population covered by a branch decreased
from 63800 to 15000 over the same period. The total deposits
grew by 32.6 times between 1971 and 1991, compared to 7 times
between 1951 and 1971. Despite an increase in rural locations,
starting in 1860, or 22% of the total number of branches in
1969 to 32270, or 48%, only 32270 of 5 lakh (500000) villages
are covered by a bank planned.
Since liberalisation, the government has approved important
banking reforms. While some concern nationalised banks (as
encouraging mergers, the reduction of state interference and
increase the profitability and competitiveness), other reforms
have opened the banking and insurance sectors closed and foreign
players.
Socio-economic characteristics
Poverty
In India many people live in abject poverty. The distribution
of wealth in India has improved since the liberalization and
the end of the socialist state, termed the licence raj. While
poverty in India has decreased significantly, official figures
estimate that 27.5% of Indians still live below the national
poverty line in 2004-2005. A 2007 report by the state-run
National Commission for enterprises in the sector of Unorganised
(NCEUS) found that 70% of Indians, or 800 million people,
live on less than 20 rupees per day, with more work "informal
sector labour without work or social security, living in abject
poverty".
Since the beginning of 1950, successive governments have
implemented various schemes, as part of the planning, reduce
poverty, which have met with partial success. All these programs
have relied upon strategies of the Work Programme for Food
Programme and the National Rural Employment 1980's, which
has attempted to use the unemployed to create productive assets
and strengthen rural infrastructure . In August 2005, the
Indian Parliament passed the Rural Employment Guarantee Bill,
the largest programme of its kind in terms of cost and coverage,
which promises 100 days of minimum wage employment to every
rural household in 200 of 600 districts of India. The question
of whether economic reforms have not reduced poverty or debate
without generating any clear answers and also put political
pressure on the continuation of economic reforms, especially
those that involve the reduction of the labour - 'work and
cutting agricultural subsidies.
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