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How to Improve Indian Financial System

How to Improve Indian Financial System


India had been successful in managing the global financial crisis of 2008 but present condition of its banking sector is worst.

How to Improve Indian Financial System

 The reasons for this are mounting bad loans, poor accounting standards and lax supervision. 
India's ratio of NPA has grown from lowest to highest in 8 years among G-20 club.

The sudden rise in bad loan ratio is due to RBI strict monitoring  in recent years which was left hidden.

Bad loan problem is high for SBI but private banks also have it.


According to IMF Indian banks are more vulnerable to financial shocks then other emerging markets banks.

Very few recommendation of Nayak Committee which was formed to suggest reforms to strengthen have been implemented even after three-and-a-half years.

Government should undertake structural reforms for state-owned banks to improve Indian Financial system and boost growth and investment.

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