Universal Banking Question 2016 Syllabus advantages 2016 2017

Universal Banking definitions

Universal Banking Question Answer 2016 Important syllabus which can asked in private and government bank exam definitions advantages and disadvantages refers to those services offered by banks beyond traditional banking service such as saving accounts and loans and includes Pension Funds Manage-ment, undertaking equipment leas-ing, hire  purchase business and factoring services, Primary Dealer-ship (PD) business, insurance business and mutual fund business.

The Universal Banking issue of universal banking came to limelight in 2000, when ICICI gave a presentation to RBI to discuss the time frame and possible options for transforming itself into an universal bank.

Later on RBI asked financial institutions which are interested to convert them into a universal bank, to submit their plans for transition to a universal bank for consideration and further discussions.

FIs need to for-mulate a road map for the transition path and strategy for smooth con-version into an universal bank over a specified time frame. The plan should specifically provide for full com-pliance with prudential norms as applicable to banks over the pro-posed period. Though the DFIs would continue to have a special role in the Indian  financial  System,  until  the debt market demonstrates substantial improvements in terms of liquidity and depth, any DFI, which wishes to do so, should have the option to transform into bank (which it can exercise),  provided  the  prudential norms as applicable to banks are fully satisfied. To this end, a DFI would need to prepare a transition path in order to fully comply with the regulatory requirement of a bank.
The DFI concerned may consult RBI for such transition arrangements.
Reserve Bank will consider such requests on a case by case basis.

Thus, Indian financial structure is slowly evolving towards a continuum of institutions rather than discrete specialization.

The applicability of various existing laws and banking practices to e-banking is not tested and is still evolving, both in India and abroad. With rapid changes in technology and innovation in the field of e-banking, there is a need for constant review of different laws relating  to banking and commerce. A re-orientation of strategy is required in order to accommodate the changes and challenges of the present globa-lised scenario.

Technological developments may become threat but still enable banks to access the global market through the electronic networks.  IT usage by banks would continue to exist in substantial scales.  Indian Banking is trying to embrace latest technology upgrading its services. Clientele are reveling sophisticated services specific needs, preferences and conveniences by the banks