Group Discussion on Banking

Banking in India was established in the 18th century. Among the leading banks to start were Bank of Hindustan (established in 1770) and General Bank of India (in 1786). Both banks were liquidated later. The largest and oldest bank still in existence is SBI which was earlier known as Bank of Calcutta.

GD is an important part of the selection process for MBA and banking exams. To help aspirants prepare for this round, we have got together this information on a Group Discussion on Banking.

The topics or decisions having an impact on the banking sector, fall into this category.

So, let's go ahead to see some facts, quotes, possible GD topics that will help you in preparing for this very important round of selection.

History of Banking

1. State Bank of India:
  • It was established in June, 1806.
  • Originally called Bank of Calcutta, it was renamed to Bank of Bengal in 1809
  • It was later rechristened as SBI in 1955.
2. Nationalisation:
  • The Indian banking sector was earlier classified into scheduled and non scheduled banks.
  • The scheduled banks were classified into nationalised and commercial banks.
  • In 1980, six banks were nationalised.
3. RBI:
  • It was set up on April 1, 1935, under RBI Act, 1934, in Kolkata.
  • It was established on the recommendations of Hilton Young Commission.
  • It shifted to Mumbai in 1937 and was nationalized on 1st Jan, 1949.

Some GD topics on Banking, you can expect to see:

1. Can the World Economy Bank upon India for Growth?
2. Advantages and Disadvantages of India's Demonetization policy
3. Is it Really a Digital Black Economy Post Demonetization?
4. Can Payments Bank Succeed in Digitization?
5. Where Will Charging Bank Transactions Lead Us?
6. Does Indian Economy Need The Mudra Bank?
7. Can Online Debit Cards Change The Ease of Transactions?
8. Can Bharatiya Mahila Bank bring women empowerment?
9. Privatization of PSU Banks: Pros and Cons
10. Rising NPAs: Will Disinvestment Solve the Problem?
11. Mobile Wallets: Advantages and Disadvantages
12. Consolidation of PSB: Challenges Ahead
13. Can Banking Regulation Act Amendment Expedite NPAs?
14. Payment Banks: Threat or Ally for Financial Inclusion?
15. Nationalisation of Banks was a historic mistake.
16. Has Demonetisation helped in weeding out corruption?
17. Is it possible to bring black money back from Foreign Banks?
18. Is India Ready to Go Cashless?
19. Can Gyan Sangam Benefit Banks?
20. Are Digital Payments in Banks Secure Enough for Indian Economy to Go Cashless?

Some Quotes on the Banking Sector you can use

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
- US automobile magnate Henry Ford

Banking is necessary, Banks are not!
- Bill Gates, Microsoft

Key Initiatives in Indian Banking Sector

  • The FM introduced the Banking Regulation(Amendment) Bill 2017 which is set to replace the Banking Regulation (Amendment) Ordinance 2017 to allow RBI to guide banks for dealing with stressed assets.
  • GoI announced demonetisation of INR 500 and 1000 Rupee notes in Nov, 2016.
  • Government also amended the Section 35A to impact the capacity of RBI to direct banks for NPAs
  • RBI has allowed banks in India to raise funds through masala bonds recently.
  • NABARD is set to provide PoS machines to 100000 villages and RuPay cards to over 34 million farmers in India
  • Bharat Interface for Money launched in Dec, 2016.
  • Digitization of payments is also in schedule with the advent of Payment Banks
  • Financial inclusion is on the anvil with MUDRA bank.
Conclusion

The India banking sector is benefiting from enhanced infrastructure, speedy project implementation and continuation of reforms. These factors suggest that India's banking sector is also poised for robust growth.

We hope this GD guide on banking sector has helped in enriching your knowledge and in identifying key areas where discussions are possible.
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