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Banking Sector Reforms in India Video Lecture | SBI PO Prelims & Mains Preparation - Bank Exams

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FAQs on Banking Sector Reforms in India Video Lecture - SBI PO Prelims & Mains Preparation - Bank Exams

1. What are some key reforms in the banking sector in India?
Ans. Some key reforms in the banking sector in India include the introduction of the Insolvency and Bankruptcy Code, merger of banks to create stronger institutions, implementation of prompt corrective action framework for banks, and introduction of measures to reduce non-performing assets.
2. How has the Insolvency and Bankruptcy Code impacted the banking sector in India?
Ans. The Insolvency and Bankruptcy Code has helped in resolving bad loans in a time-bound manner, improving the recovery rate for banks, and promoting a more disciplined credit culture among borrowers.
3. What is the prompt corrective action framework for banks in India?
Ans. The prompt corrective action framework is a set of guidelines introduced by the Reserve Bank of India to monitor and take corrective actions for banks that show signs of financial distress. It helps in ensuring that banks maintain adequate capital and improve their asset quality.
4. How have bank mergers contributed to the reform in the banking sector in India?
Ans. Bank mergers have helped in creating stronger and more resilient banks, improving operational efficiency, reducing costs, and enhancing the overall stability of the banking sector in India.
5. What measures have been taken to reduce non-performing assets in the banking sector in India?
Ans. Measures such as asset quality review, resolution through Insolvency and Bankruptcy Code, recapitalization of banks, and implementation of stricter loan recovery mechanisms have been taken to reduce non-performing assets in the banking sector in India.
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