| by admin | No comments


They accept deposits in several forms according to requirements of different sections of the society. It gives the informal sector lower transaction cost advantage. Commercial banks also undertake the task of underwriting securities. What is a Literature Review? These companies are exempted from compulsory registration because they are primarily engaged in conventional chit fund activities and the concerned Registrar of Chit fund would be monitoring their activities. Hence the need to have a conceptual framework which considers all these viewpoints and it should specify from which regulation, the ICMs are independenl. Chit funds registered according to Kerala Chitty Act, and chit funds registered in outside the state not according to Chitty Act, but according to Commercial Establishment Act.

Singh R , in his paper Profitability management in banks under deregulate environment, IBA bulletin, No25, has analyzed profitability management of banks under the deregulated environment with some financial parameters of the major four bank groups i. Interest They do not carry They carry interest payments any interest. Chit funds registered according to Kerala Chitty Act, and chit funds registered in outside the state not according to Chitty Act, but according to Commercial Establishment Act. Therefore, one should rely on latest information. Further, they felt that since net interest margin will continue to remain compressed in a deregulated interest rate regime, a lot of effect would have to be made to mitigate this through generation of non-interest income. Another feature of nidhis is that their operations are restricted to members only Chit fund companies are regulated by RBI under tniscellaneous non-banking companies Reserve Bank directions, with respect to deposit acceptance.

This is explained in the forthcoming section.

literature review on ksfe

Depositor generally makes only two transactions: On maturity, bank gets its payment from the party which had accepted the bill. In the light of these regulations the Mutual Benefit Companies Nidhis are liiterature formal sector in the conceptual framework.

literature review on ksfe

According to Ksfee this appears to be a reasonable good definition, but could pose certain problems as financial agencies subject to government control or RBI control, have not remained the same ovt: Altogether, 39 indicators were selected for this purpose. Karkal and Radhakrishnan arrived at a working definition which comprised of entire gamut of financial agencies in corporate and non-corporate forms, involved in borrowing and lending activities with the public without directly or indirectly coming under the control of either the government or the Reserve Bank of India.


Kim opined that it would not be desirable to place too much emphasis or1 the conceptual definition of informal credit markets. One of the key features of their framework was that they included corporate segment in the definition of informal credit markets, because opting out the corporate sector from the framework may leave out chit funds from the definition of informal sector. A period of ten years from literatyre is taken for the study.

literature review on ksfe

Das sincerely felt that the whole banking literatuer in India is to be revolutionized to cope with the changing dimensions of the satellite one world. The deposits received by ksef are not allowed to remain idle. In most of the countries the central bank imposes control on formal sector in these areas.

A rigorous selection process was devised in consultation with Earnest and Young. Hence their activities are termed as informal. All three types of Deposits have continuously grown during the study period, though the rate of growth was highest in fixed deposits.

Banks provide the facility of economical and easy remittance of funds from place-to- place with the help of instruments like demand drafts, mail transfers, etc. The conclusion points to a convergence in performance between public and private sector banks in the post-reform era, using financial measures of performance D’souza in his study evaluated the performance of Public sector, private sector and foreign banks during the period to The definitions adopted in different studies are analysed below.


UMD library resources and links. They can also literahure your reader: It was agreed at the Design Workshop held in Manila, the Philippines in connection with the country studies under the om of the Asian Development Bank ADB that the formal and informal credit markets fonn a continuum, and where in this continuum the line of demarcation fell would be a country specific decision. It did not extend to the asset side of the i alancesheer of NBFIs.

What is a Literature Review?

literature review on ksfe

Madhur and Nayar used a more advanced conceptual framework. As public has full faith in the creditworthiness of banks, public do not hesitate in buying the securities underwritten by banks. Accordingly the RBI was vested with certain powers to effectively supervise, control and literzture the deposit acceptance activities of these institutions.

As far as NPAs are concerned, they believe’ that, the outdated laws and regulations that pose hindrance to banks in getting back their dues need to be suitably amended. Log In Feview Up.

Srivasrava stated that informal credit markets referred to the absence of state provided institutional infrastructure to support the organisation of economic activity. Flexibility of operation implied escape from regulation. It gives the informal sector lower transaction cost advantage.

This includes individuals part-time and full-timerunning business on cooperative basis and other loosely designed moneylenders. These deposits refer to those deposits which are repayable by the banks on demand: He considered non-banking financial institutions in the Philippines such as pawn shops, lending investors and non-stock savings and loan associations, money shops- which were regulated by central banktermed as forrnal sector.