“Double Financial Repression” a major challenge faced by present Banking system in India is caused by –
Codes :
“Double Financial Repression” a major challenge faced by present Banking system in India is caused by –
Codes :
The correct option is A 1, 2 and 3 only
The above mentioned four factors are different policy and structural challenges, passing Indian Banking system at present. These structural and policy problem together lead to “Double financial repression.
Double Financial Repression in Indian Banking System is faced by many ideas and challenges stemming from both policy and structure. As pointed out by Economic Survey 2014-15, is a phenomenon when the banks are faced with financial repression both on the asset and liability side. Financial repression on asset side is a by-product of the SLR (Statutory Liquidity Ratio) i.e. the amount of liquid assets which banks are required to hold in form of cash, government bonds and gold. Even the provision of 40% of Priority Sector Lending has led the allocation of cash to less than fully efficient ways. Financial repression on the liability side is the result of continued inflation since 2007. This has led to negative interest rates and relative diminishing of household savings.
1, 2 and 3 only
The above mentioned four factors are different policy and structural challenges, passing Indian Banking system at present. These structural and policy problem together lead to “Double financial repression.
Double Financial Repression in Indian Banking System is faced by many ideas and challenges stemming from both policy and structure. As pointed out by Economic Survey 2014-15, is a phenomenon when the banks are faced with financial repression both on the asset and liability side. Financial repression on asset side is a by-product of the SLR (Statutory Liquidity Ratio) i.e. the amount of liquid assets which banks are required to hold in form of cash, government bonds and gold. Even the provision of 40% of Priority Sector Lending has led the allocation of cash to less than fully efficient ways. Financial repression on the liability side is the result of continued inflation since 2007. This has led to negative interest rates and relative diminishing of household savings.
