The concept of saving has always excited in different cultures all over the world. Connecting currency in pots and burying them under the earth is something that has been done all over the world in ancient times. The royal treasury was the repository of monies collected in a kingdom by way of taxes or acquired as levies from subordinate dependent kingdoms.
With the advent of modern banking management of money shifted from the home to the bank. Appeal found it safer to deposit money and jewellery in the bank which had volt to safeguard their wealth. Also, banks offered interest on deposits which meants additional income.
The banking system in India started with a small, private and commercial banks. But when some of these begin to fail aur funds deposited were Siphoned off by the banker and customers lost hard-earned money deposited. Then the government decided to step in and nationalise these banks.
This major reform ensure that the customer was not affected by any loss occurred by the bank or the bank could not misuse customer money. Gradually, over the years other regulatory mechanism were introduced to regulate public sector bank recommendation of Narsimha committee on banking sector reform proved to be another major step stone in the direction.
Thereafter there have been series of gradual reforms focusing on improving efficiency and governance of banking sector.
Cyber security is another concern in modern banking especially with the era of less cash economy and digitalization of banking transaction. This is attempted to be resolved through various initiatives by the department of information technology in collaboration with institution like IIT. Financial inclusion through banking is a major trust of the government with scheme like Jan dhan Yojana and DBT. Rural banking is also another area of concern since many areas still remain to be covered by banking services due to inaccessibility.
On the face of it, the concept of banking reforms may seem an issue for economists and policy planners. But banks are the places which people trust their hard earned money with. Being in control of your finances is a great stress reliever and efficient good banking system is the key to relieving this stress from everyone’s life.