Meaning, Concept and Significance of Banks


  • Sruti Bansal Department of Law, Hidayatullah National Law University, Raipur, India


Meaning, Concept, Significance of banks


The well know said lines by Sir Rudyard Kipling is going true day by day. After the world war and the nationalization it played the significant role in the development of the nation. The spread of science and the progress in technologies and communication has helped a lot in the development of the banking sector. It is found that the interest of nation and the wellbeing of the nation are the concern of all. The difference that is there between the east and the west is very fast disappearing and they have found a common platform.”
“Bank plays a very vital role in Indian economy, there went many changes after Liberalization. The new economic reforms have totally changed the banking structure. Reserve Bank of India has permitted new banks to get established in the private sector as mentioned in the guidelines of the Narsimham committee. Previously the Indian banking structure was dominated by the Public sector but now things have changed. Now new technologies are there and professional management has earned a reasonable position in the Banking Sector. In fact to raise the economy of the country it is required to develop the banks. The development of the country is based on the economy and the bank takes the money from the public and provides to the business men which use them for productive works and raise the economy of the country. Due to development now banks are providing credit for the purpose of agriculture and small scale industries also by which they adopt new methods of production.”
“Today our economy is also based on expansion of trade especially exports. Therefore the policies are made by the banks which helps in the economic development of the country. In this paper there are all type of bank, kinds of banking the role of RBI and the reforms. The phrases of development after independence which helps to make an overview about the history of the Banking System. In this paper we discussed about the irregularities done by the banking structure and provides some suggestions to overcome these irregularities so that it can help in the development in the development of the banking sector which eventually plays the major role in the development of the Indian Economy.”




How to Cite

S. Bansal, “Meaning, Concept and Significance of Banks”, IJRAMT, vol. 1, no. 2, pp. 11–15, Jan. 2021.