Q:

What are the pros and cons of nationalizing commercial banks in India?

A:

Advantages of nationalizing commercial banks in India include ensuring that all citizens are able to access funds, and improved regulation of how money is used by borrowers; a significant disadvantage of nationalization is reduced competition, meaning less incentive for the bank to modify services and rates. Proponents of a nationalized bank believe that because the bank is mandated to serve its citizens, it is more inclined to service the disadvantaged, such as low-income earners and remote communities.

Naysayers believe that nationalized banks may continue outdated and inefficient practices if they do not have to compete. New and innovative businesses may also find it harder to obtain loans, as nationalized banks are less inclined than private banks to take risks.

Sources:

  1. intoday.in

Is this answer helpful?

Similar Questions

  • Q:

    Do banks have notary services?

    A:

    Some banks offer the services of a notary public, and many offer this service to their customers for free. Credit unions also may have a notary on hand to notarize documents for their members. The best way to find out if a bank offers notary services is to call or visit a local branch.

    Full Answer >
    Filed Under:
  • Q:

    Do banks accept torn money?

    A:

    According to about.com, money that is damaged and still clearly readable may be exchanged at any bank. Bills that are severely damaged are considered mutilated and must be mailed or hand delivered to the Bureau of Engraving and Printing.

    Full Answer >
    Filed Under:
  • Q:

    How much money do banks keep in the vault?

    A:

    The amount of money kept in a bank's vault varies widely and is mostly dependent on the anticipated transaction needs of each bank, the cost of shipping currency should it run low, and the loss of potential interest on cash held in the bank rather than loaned to customers, according to the Federal Reserve Bank of St. Louis. Banks must also retain a minimum amount of cash reserves by law.

    Full Answer >
    Filed Under:
  • Q:

    What are the pros and cons of exporting?

    A:

    Advantages of exporting include increased sales, gaining global market shares, diversification, lower cost per unit and expansion within the company. Disadvantages include extra costs, the possibility of needing to change products, payment collection complications and difficulties in getting reliable market information.

    Full Answer >
    Filed Under:

Explore