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The Reserve Bank of India, not to be left behind, played its part in this transformational journey, by issuing regulations and recommendations on banking mechanization and computerization. Financial sector in general and banking industry in Particular is the largest spender and beneficiary from information technology. According to John Finnerty, "Financial Innovation involves the design, the development, and the implementation of innovative financial instruments and processes, and the formulation of creative solutions to problems in finance". The various innovations in banking and financial sector are ECS, RTGS, EFT. [ABSTRACT FROM AUTHOR]

Recent advancements in technology-based payment methods have prompted central banks all over the world to consider the possible advantages and hazards of issuing Central Bank Digital Currencies (CBDC) in order to keep up with the current innovation trend. The Indian payment system is no exception to this fintech innovation trend. As a result, the Reserve Bank of India (RBI) must begin considering related patterns and develop a phased implementation plan that progresses gradually through the pilot project. The present research is proposing a Pilot project on the issuance of retail e-rupee first. The research is primarily based on the normative method presenting a qualitative analysis of the creation of a digital rupee possibly like paper money and its smooth implementation. The study examines the potential effects of retail e-rupee implementation on the banking industry, monetary policy, technology architecture options, potential retail e-rupee applications, issuance methods, etc., as well as privacy issues. Thus, it will assist RBI in making policy decisions. [ABSTRACT FROM AUTHOR]

The article presents a discussion of Arthur I. Bloomfield's research paper on a survey of central banking in developing countries. The reviewer said that his research was lucid and comprehensive and the author is in general agreement with Bloomfield on the various issues he discusses. The author adds to Bloomfield's paper by describing the various steps taken by the monetary authorities in India in the late 1940s and throughout most of the 1950s. The steps were taken to strengthen the banking and credit system.

The paper seeks to examine the broad trends in research on post-merger customer satisfaction, loyalty, and service quality in the banking sector. It identifies the top contributions to the body of knowledge in the sector in terms of authors, journals, countries, and institutions by examining the relevant literature in this area. The 189 research publications under analysis have a combined 455 authors, with more multiauthor studies than single-author ones. India has the most (111) publications in the dataset, while China has received the most citations overall. Graphic Era (Deemed to be University) from India is the leading research contributor in this area. The network visualization exercise also showed a substantial level of international cooperation in this field. [ABSTRACT FROM AUTHOR]

This paper harnesses the Artificial Neural Network Quantile Regression model to estimate the systemic risk exposure of select banks in India. The model employs a 'Leaky ReLU' activation function to capture non-linearity in risk spillover. The estimated model detects major periods of systemic stress in the last 15 years and suggests that smaller private sector banks are more exposed to systemic risk during stress periods. The estimated model is useful in gauging early signs of rise in systemic risk exposure of individual banks and can complement the micro-prudential risk assessment toolkit of supervisors in initiating timely remedial actions. [ABSTRACT FROM AUTHOR]

Purpose: This qualitative study aims to examine bankers' perspectives regarding financial inclusion, the challenges it faces and the scope for improvement. This research proposes a financial inclusion model, considering the inputs received by bankers. Financial exclusion of different sections is an issue common to emerging countries. Design/methodology/approach: Data for qualitative research were collected through interviews with bank officials. The information was gathered from 32 bankers from India's several zones (North, South, West and East). The data were collected from bankers from different public and private sector banks. Thematic analysis was performed up to the point of saturation to study the response received from bankers. Findings: Bank-related issues such as frequent computer problems, network connectivity problems, costs, a shortage of bank branches, fewer transactions through automated teller machines and a shortage of banking staff affect customers' confidence in formal banking. Banking services are disrupted by a lack of trust in banking correspondents (BCs), as they are not regular employees of banks. Limits on daily transactions discourage high-value customers from using BCs and kiosks. The time spent on administrative formalities impacts customers. Financial inclusion is affected by availability, accessibility, usage and affordability. Digital financial literacy is essential for ease of transaction, but awareness about financial products helps protect customers from cyber scams. The findings of this research would benefit financial institutions globally in developing their businesses and helping to achieve financial inclusion and the United Nation's sustainable development goals (SDGs). Originality/value: This research paper undertakes a qualitative analysis of the views collected from bankers. Bankers are crucial stakeholders in the successful implementation of the National Financial Inclusion Policy of the Government of India. Bankers' perspectives will be important not only for India and its researchers but also in the global context, as the UN's SDGs focus on leaving no one behind. [ABSTRACT FROM AUTHOR]

This case study has been modelled upon the recent working paper released by the RBI². As the Indian economy surges ahead, the requirements of the consumers, the profile of the stakeholders and the complexity of the operations is undergoing a huge change. The interlocking of the financial community worldwide and at the same time the uniqueness of the Indian situation make it a tough balancing act for the regulator(RBI). The need to encourage sound operations, robust regulations keeping in mind the public interest and watching the growth options are some of the issues discussed herein. The case aims at highlighting international practices along with those followed in Indian so as to invite a discussion on topics listed in this important document released by the Indian regulator (RBI) which is bound to impact the future course of the banking industry. [ABSTRACT FROM AUTHOR]

The adoption of technology and its advancements have brought various fundamental and structural changes to various sectors of the economy, including the banking sector. In India, the move towards e-banking was initiated by the Reserve Bank of India (RBI) by relying upon several recommendations provided by high-level committees formed for promoting the growth of information technology in the field of banking. In the current scenario, digital payment methods have replaced conventional paper-based methods due to their costefficiency and expediency. However, it is accompanied by certain challenges, such as poor security measures followed by institutions, which in turn create reputational, operational, or legal risks as they might lead to the disclosure and misuse of sensitive personal information of customers. In order to combat such risks and meet the challenges, the legal framework needs to be strengthened and made more stringent, while specific laws governing electronic payments need to be complied with. The paper examines the relevance of the growing electronic fund transfer systems in India, issues associated with them, existing statutory provisions, and directions issued by the RBI to combat such challenges, and offers suggestions to strengthen the legal framework in order to protect customers as well as participating institutions. [ABSTRACT FROM AUTHOR]

This paper develops a Structural Satellite version of the Financial-Macroeconometric Model of India (SSFMMI) to examine whether the surge in Nonperforming Assets (NPAs) in Indian Public Sector Banks (PSUs) post-2015 is due to macroeconomic shocks or better classification of loans and cleaning of bank balance sheets. Specifically, the paper analyses the impact of a rainfall shock, domestic food price shock, world oil price shock, fiscal shock, and monetary shock using counterfactual policy simulations and an out-of-sample forecasting framework to validate the impact of these macroeconomic shocks on NPA levels. The paper's outcomes suggest that the late surges in NPAs are not due to macroeconomic shocks and, therefore, that Indian banks are resilient to such shocks. However, the study reveals that the rise in domestic fuel prices and world food prices can cause a surge in NPAs levels. [ABSTRACT FROM AUTHOR]

The present paper explores both the direct and indirect impact of ICT diffusion through the channel of digital finance on two development indicators such as poverty and income inequality at the sub-national level in India. Ordered probit estimation confirms that ICT diffusion directly reduces the persistence of poverty in both urban and rural areas. The application of ICT in the banking sector in the form of digital finance has a positive role in rural-urban poverty reduction. ICT has no direct impact on income inequality, though financial inclusion has a positive influence on both rural and urban inequality. ICT diffusion in the banking sector dampens the positive impact of financial inclusion on urban inequality with no impact on rural inequality. Proposed policy prescription can be strengthening of ICT infrastructure with wider and uniform spread of digital finance among rural and urban population so that more people can take advantage of it. [ABSTRACT FROM AUTHOR]

Since the outbreak of the European war, the flow of rupee coins back from circulation to reserves, which has been going on for many years, has been reversed. The stock of rupee coin in the Reserve Bank of India has decreased, while circulation has increased, between September 1939 and July 1940. This increase of coin circulation has been due partly to the proportional increase of note circulation and to some tendency to hoard coins in preference to notes. To avoid exhaustion of the Reserve Bank's supply of coin, the government of India began the issuance of 1-rupee notes. In December 1940, it announced a reduction in the fineness of the rupee from 11/12 to 0.300. It remains to be seen whether this section will be acceptable to the population.

The purpose of this paper is to analyse the policy implications of the Insolvency and Bankruptcy Code (IBC) 2016, which was enacted in India as part of banking sector reforms. The study aims to answer the question: Has the policy helped banks enhance their asset quality, stability, and performance?" To determine the effect of IBC on these research variables, we used a difference-in-difference (DID) regression technique. We collected a sample of 924 bank year observations for three categories of banks -- public, private and foreign ownership banks for the period during 2010 to 2021. We first analysed the ownership-wise impact of IBC on asset quality, stability and performance. Then, we further investigated the policy's implications by dividing banks into unhealthy and healthy categories based on their Z scores. In our findings, bank stability and asset quality for three ownership banks (private, public and foreign banks) is significantly different from each other. For overall sample observations, the relationship between asset quality and banks stability is negative and significant. This suggests that a deterioration in asset quality leads to less change in bank stability, i.e. the result confirms banks' loan evergreening problem during the reform period. The results estimating the impact of IBC on stability of public sector banks was insufficient, except for risk capital. Our findings show that public sector banks have tightened their lending standards in anticipation of potential asset quality deterioration. However, our analysis of the IBC's impact on unhealthy banks' asset quality, stability and performance did not align with the policy's objectives. While the IBC policy in itself is passing through several changes in recent, the study's results can aid policymakers in better assessing the impact of banking policies in India and can be used a reference for future policy formulation. A few related areas where the study results will aid to help are insolvency resolution, developing liquidation and cross-board insolvency framework. This paper is the first effort to estimate the impact of IBC separately on asset quality, bank stability, and performance of banks in India. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to investigate the role of corporate governance on the bank profitability of Indian banks vis-à-vis South Asian Association for Regional Cooperation (SAARC) nations. Design/methodology/approach: For the Corporate Governance Index, the authors examined board accountability, transparency and disclosure and audit committee, while Tobin's Q, return on equity and return on assets are used to measure the bank's profitability. The study used a two-stage analysis based on balanced panel data for robust findings. Sample of this study consists of 60 commercial banks from India and 60 banks from SAARC nations for the period of 2009–2021. This study used panel regression and a generalized method of moment approach using the CAMELS framework on banking industry-specific variables to determine their respective impacts. Findings: The findings of this study suggest that board accountability is positive and significantly affects the profitability of banks as indicated by return on assets, return on equity and Tobin's Q. In contrast, the audit committee has a positive and insignificant impact on return on assets, return on equity and Tobin's Q, while transparency and disclosure have a negative and significant impact on these metrics. Furthermore, the country dummy result shows a significant positive impact on all the bank performance parameters, implying that Indian banks have the highest degree of convergence with corporate governance as compared to other SAARC nations. Research limitations/implications: This study provides insight to the regulators, policymakers and financial institutions to evaluate the role of corporate governance in emerging economies. However, the findings of the study should be interpreted with caution, as the results are sensitive to the disparity between India and other SAARC nations' government policies, climatic circumstances and cultural or religious traditions. Originality/value: To the best of the authors' knowledge, this is the first attempt to gauge the performance of Indian banks vis-à-vis SAARC nations using the CAMELS framework approach. Further, findings of this study suggest some novel evidence tying corporate governance quality with the profitability of banks among SAARC nations. [ABSTRACT FROM AUTHOR]

A country’s growth depends on how well the citizens are able to access, avail and afford the financial services. Finance is an important aspect for a country to prosper. Agricultural finance ensures that there is a full participation by everyone and that the underprivileged or the marginalized compartment of the society is not left behind in availing the basic financial services. India having a big population often face a problem when it comes to implementing the policies that reach a wider audience. The Agricultural Banking Services in India has undergone changes with time and have been working to provide a wide range of facilities but the infrastructure, insurance, financial literacy, the digital divide and the disparity in the availability of resource in urban and rural area is evident. There is one section that avails all the benefits and others who are excluded. In this paper, we study about the status of India, when it comes to Agricultural finance, using selected indicators, and understand the basic initiatives taken by the government under the recent National Strategy Planning and the action plan and milestones set to achieve the goal of providing inclusion and financial strength to maximum citizens of India. [ABSTRACT FROM AUTHOR]

The "Go Green" concept has become significant in every facet of business in today?s environmentally conscious culture. With all company activities, there is a need to focus on people and the environment rather than just on profits as businesses can no longer operate only for profits. The concern towards environment results a shift toward green economy, and businesses must be environmentally conscious in all aspects of their operations. Green banking is one of the initiatives in this direction. Green banking entails ensuring environmentally friendly practices in the banking sector and, as a result, lowering internal and external carbon footprints. A broader perspective is that green criteria should be used as a lending principle. The banking industry isn?t often thought of as a polluter. However, it has a negative influence on the environment because it increases energy use lighting, air conditioning and paper consumption. The paper reviews the green banking practices among select banks in India & to identify the challenges associated with implementing this eco friendly phenomenon. [ABSTRACT FROM AUTHOR]

The present study analyses existing studies on various issues of Indian commercial banks related to non-performing assets (NPA). The problem of NPA is not only precarious in India, but also across the globe. In other words, NPA is like a large red balloon, a red signal for the banking system in India. The reason for the investigation is to analyse the accessible literature, to place in a nutshell the various points of view of NPAs. The article divides the existing literature into different sections, for a detailed analysis of the identification, growth and composition, determinants, financial ratios, recovery channels, financial sustainability, and other aspects of NPA management of commercial banks. The papers which have been chosen for the literature reviews are based on a systematic literature review. The research papers and articles have been selected by searching keywords in the abstracts and concluding remarks of the whole database. The systematic review process conveys and assists in the selection of appropriate articles for the study. The scope of this research will be helpful to bankers in finding new directions to analyse the management of NPAs, and academicians and researchers in conducting exploratory research. The study presents the research gaps that occur in the management of NPAs, to explain research that can bring an insight into the literature. A wide-ranging review of NPA will not only help identify the issues, but also establish effective management of NPAs. [ABSTRACT FROM AUTHOR]

Using recently declassified archival material pertaining to the Chartered Bank of India Australia and China, this article foregrounds quantitative evidence that sheds new light on the history of British banks in Asia. It shows that Hong Kong came to play a critical role in the bank's note issue strategy after the Straits Settlements had moved off the silver standard in 1906. Locally denominated notes issued on mainland China complemented the Hong Kong issue. However, their circulation volume dropped dramatically during the anti-British boycott that followed the May Thirtieth Incident (1925). [ABSTRACT FROM AUTHOR]

Purpose: Human capital is a portfolio of rich skills that the labour possesses. Human capital has attracted significant attention from scholars. Nevertheless, empirical findings on the utility of human capital have often been divided. To address the research gap in the literature, the authors attempt to understand how human capital plays a significant role in financial development and economic growth nexus. Design/methodology/approach: The authors rely on secondary data published by the World Bank. The authors use econometric tools such as the autoregressive distributive lag (ARDL) model and related statistical tests to study the relationship between human capital, India's financial growth and gross domestic product (GDP) growth. Findings: Study findings suggest that human capital and financial development contribute significantly to economic growth. Further, the authors found that human capital has a positive and significant moderating effect on the path of joining financial development and economic growth. Practical implications: The study contributes to the human capital debate. Despite the rich body of literature, the study based on World Bank data confirms the previous findings that investment in human capital is always useful for the financial and economic growth of the nation. Originality/value: This paper reveals some unique findings regarding effect of financial development and economic growth nexus which opens the window of new dimension to think about their nexus. It also provides a different pathway to foster the economic growth by using human capital and financial development as together, especially in India. [ABSTRACT FROM AUTHOR]

The deposit insurance system in India is one of the oldest in the world. Though deposit insurance is a well-researched area across the globe, it is relatively unexplored in India. This paper aims to critically evaluate some of the core aspects of the Indian deposit insurer, explicate the strengths and weaknesses of the system, highlight the risks that accrue to the system due to its features and the lessons learned from its 60 years of experience. The study suggests that the Indian deposit insurance system is marred by certain issues, such as irregular revisions of coverage limits, cross-subsidisation, delays in the recovery of settled claims, the restricted role of the insurer and the non-availability of a benchmark for the insurance fund. It further provides policy recommendations for practitioners to overcome these shortcomings and enhance the robustness of the deposit insurer by allowing better risk management under the scheme. [ABSTRACT FROM AUTHOR]

Purpose: International Integrated Reporting Council is in its 10th year of establishment and the integrated reporting (IR) framework released in 2013 was under revision in the year, 2020. Despite some significant developments in the past 10 years, the authors know very little about the perception of preparers towards IR. This paper aims to study the perception of the preparers and to understand the current status of the adoption of IR in India. Design/methodology/approach: The top 500 companies from ET 500 list have been analysed. Banks and financial institutions (a total of 69) have been excluded for the study. Out of 431 companies, the status of IR has been checked by the questionnaire-based survey. Principle component analysis, a dimensionality reduction technique was performed on the responses to understand the important components impacting the perception of companies. Also, a case study methodology has been adopted to compare and analyse the IR trends in the manufacturing and industrial sector. Findings: The result shows that the majority of companies have a positive opinion about IR and the three major components impacting their perception are – concise reporting, effective and transparent reporting and finally, better decision-making. Practical implications: The result of this study will be useful for the policymakers, regulators, companies who have or will adopt IR. Paper gives a relevant view to academicians for assessing the effectiveness and perception of IR. Originality/value: Very few studies can be found in India which focusses on analysing the perception of preparers towards the IR. Specially after the circular of SEBI in 2017, it becomes even more important to analyse the insight and awareness of the companies who have adopted IR. The paper is a timely and relevant contribution to the literature by providing insight over the opinion of preparers in India. [ABSTRACT FROM AUTHOR]

The study aims to capture the mediating effect of technical efficiency on the relationship between credit risk and financial performance in the Indian banking sector. This paper is based on secondary data extracted from the financial reports of commercial banks operating in India for the year 2021-22. Simple mediation analysis is used to analyze the data. The technique of data envelopment analysis (DEA) was deployed to calculate technical efficiency score. The findings show that credit risk has a negative and significant relationship with both financial performance and technical efficiency when taken alone as an independent variable. Overall, the results show that technical efficiency fully mediates the relationship between credit risk and banks' profitability. The mediating effect suggests that scheduled commercial banks operating in India can achieve both technical efficiency and good financial performance through vigilant supervision of credit risk. With specific reference to India, such empirical work showing the mediating effect of technical efficiency on financial performance and credit risk has not been taken up before. The findings of the study are expected to provide a better understanding of the role of managing nonperforming assets in determining technical efficiency and financial performance. [ABSTRACT FROM AUTHOR]

Banks play a vital role in channeling investors' savings. This paper investigates the probabilistic interpretation of the bankruptcy risk--evolved by Hannan and Hanweck (1988)--in Indian Public Sector Banks (PSBs) through the Z-index approach. Z-index has been used to determine the insolvency risk for 20 PSBs for the period 2010 to 2021. The secondary data was collected from the websites of respective banks and RBI. The data consists of 20 PSBs' Return on Assets (ROA) and Capital Adequacy Ratio (CAR). The results show that except Allahabad Bank, all PSBs' index is more than 10, offering a better financial position during the study period. Since the Z-index measured for SBI is highest among all the 20 PSBs, its financial soundness is reported to be at the top level. Therefore, there is no risk of insolvency for those banks with a high Z-index. The paper provides insights on trends of solvency position among the selected banks. It is helpful in improving the knowledge of banks' bankruptcy prediction and in analyzing their financial soundness. The paper reveals that bankruptcy could be due to poor management and improper investment estimation, leading to insolvency among the banks. A bank should focus on its ROA to improve its quality and avoid bankruptcy. CAR is also a sound indicator for a bank to maintain good solvency. Therefore, CAR and ROA are the most critical indicators to measure the risk associated with an investment in the banking sector. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the role of corporate governance practices in restraining earnings management in Indian commercial banks. Design/methodology/approach: Estimation of earnings management is based on discretionary loan loss provision and discretionary realised security gains and losses using Beatty et al. (2002) model. The effect of corporate governance on earnings management is examined by performing two-way least square dummy variable regression. Data for a period of five years (2016–2020) is collected from the Centre for Monitoring Indian Economy ProwessIQ database, Reserve Bank of India website, annual report of banks, National Stock Exchange and bank's website. Findings: Regression results exhibit that number of board committees, size and independence of audit committee and joint audit are significantly effective in curbing earnings management. Other board-related variables (size, independence, meetings and diligence) and audit committee variables (meetings and diligence) are not effective in restraining earnings management in Indian banks. Practical implications: The findings may prove to be helpful to regulators, board of directors and investors. It shows the weak area of corporate governance in India that is lack of autonomy to independent directors, which needs regulators attention and it also suggests that the number of independent auditors should be adequate for audit purposes. The board of directors must ensure the formulation of an adequate number of committees, which perform their own super specialised functions. This study brings an alarm to investors not to rely on reported earnings alone as they may be manipulated. Originality/value: This paper substantiates the scant literature on the role of corporate governance practices in restraining earnings management in banks of emerging markets and to the best of the authors' knowledge impact of joint audits on earnings management is previously unexplored in Indian banks, which are examined in this study. [ABSTRACT FROM AUTHOR]

Purpose: This paper compares the impact of corporate governance determinants of asset quality between India's public and private sector banks. The article identifies which corporate governance determinant is better utilized between the two sectors. The findings empower the banking regulatory authorities and individual bank administrators to handle asset quality in a better manner through a robust corporate governance framework. The study's findings are also helpful for other nations to make informed judgments by countries with economic relations with India. Design/methodology/approach: The article uses a dynamic panel data analysis method on novel data to achieve the purpose of this article. Using the General Method of Moments, the authors analyze 21 public and 24 private sector banks. The data used in this study span over a decade from 2010 to 2019. Findings: According to the estimates, there is a significant difference in the impact made by corporate governance determinants on public sector banks vis-à-vis private sector banks. The results find that while board size has a greater impact on the asset quality of private banks, board independence has a lesser impact. Gender diversity contributes to more reduction of NPAs in private banks. The article also concludes that public banks perform better in the utilization of audit committee while private banks are better at using board meetings, CEO duality and ownership concentration. Originality/value: Several papers have identified the determinants of asset quality in banks in various nations. However, to the authors' knowledge, none of the papers has identified the difference in the impact of corporate governance determinants between India's public and private sector banks separately. This article is the first to do so. [ABSTRACT FROM AUTHOR]

A number of studies have analyzed the determinants of financial inclusion in India, but few if any have focused specifically on the factors that shape women's access to finance. This paper draws on the trove of women‐specific data collected in the fourth round of the National Family Health Survey (NFHS‐4), conducted in 2015–16 in India, to examine the factors that influence women's access to finance. The results indicate that while the forces that shape women's access to finance function at multiple levels, micro‐level factors appear to be powerful drivers of inclusion. The analysis reveals that household‐level economic indicators like wealth, gender of household head and their rural‐urban location are crucial, but so are individual‐level characteristics which explain approximately 83% of the variation in the multilevel regressions. Informal gender norms that govern women's mobility and economic activity crucially influence the ability of women to access loans and open bank accounts. [ABSTRACT FROM AUTHOR]

In India, the non-accessibility of credit and banking facilities to poor and vulnerable segments of society has always been a major concern. Several steps have been taken from time to time by the Government and the Reserve Bank such as nationalization of banks, prescription of priority sector lending criteria and concessional interest rate for the weaker segment of society. It was, however, realized that further direct efforts were required to address the credit needs of poor people. In response to this requirement, the Micro finance movement started in India. The aim of this paper is to inspect the current status, challenges and potential of Microfinance in India. Descriptive research methodology is followed and analysis is done based on data available from secondary sources. This paper illustrates present challenges and potentials in Microfinance in India considering data of last ten years. This paper concludes with the finding that South Region of India is doing great and North Region of India is lacking in SHGs -- Bank Linkage Programme. [ABSTRACT FROM AUTHOR]

Financial distress (FD) is a crucial issue that needs to be resolved in time; otherwise, it may adversely influence society's areas. Therefore, identifying the factors responsible for FD and how these factors affect FD is an exciting area of research. Given this, this paper proposes investigating the effect of competition on the bank's FD in India. This paper uses the data of 34 banks operating in India for the observation period (2016–2019). Three variants of Altman's Z-score are used for the assessment of FD. Lerner's index of the banks is developed for the competition measurement. A panel data analysis is further performed for regression analysis. The current study has an interesting outcome. The findings reveal that high market power or low competition lowers financial distress and adds more financial stability in banks in India. This paper provides fresh evidence on the connection between market power and FD of banks in India. Moreover, no other study has been observed to use all the three variants of Altman's z-score to provide robustness and reliability in results. Therefore, the study has a significant contribution and a novelty in its approach. [ABSTRACT FROM AUTHOR]

Purpose: This study seeks to observe the association between mobile banking failures, use of m-banking and customer engagement to determine the contribution of user satisfaction towards m-banking as mediator between the aforementioned relationship. Design/methodology/approach: This study proposes a Mobile Banking Failure Model (MBFM) by integrating four failure dimensions (functional, system, information and service) based on Tan's failure model and DeLone and Mclean's Information Success model. In this paper, data was gathered from 338 respondents, who were the customers of banks and regular users of m-banking services of their respective banks in India. A survey method was employed to collect data. Structure equation modelling (SEM) was used to analyse the collected data. Findings: The results suggest that all m-banking failure dimensions (functional, system, information and service) affect the use of m-banking, which in turn affects user satisfaction towards m-banking and customer engagement. Additionally, this study found that user satisfaction towards m-banking acts as a partial mediator between the use of m-banking and customer engagement. Research limitations/implications: The banking failure and its use by customers have been examined in the context of mobile banking in India only and thereby limits the generalization of results to other industry and country contexts. Practical implications: The results of this paper will guide bank managers and policy planners in implementing MBFM in the Indian banking context, specifically for their m-banking apps. Originality/value: The use of m-banking, user satisfaction towards m-banking and customer engagement have been added as three supportive variables to the basic Tan's failure model and DeLone and Mclean's Information Success model to examine the impact of m-banking failure on bank customers' usage behaviour. This is a novel addition to the extant literature, as most empirical works in this domain are from industries other than banking (specifically m-banking) and with differing contexts. [ABSTRACT FROM AUTHOR]

Economic reformation in India started in 19th century, but their outcomes are visible now. The reason behind the outcomes is the liberalization, higher remarkable and strengthen the present system. The wealth of a nation is decided by GDP, in which the service sector plays a major role of deciding the GDP. The new technologies and process of new reforms in banking embodied an incentive for banking management to focus on growth in terms of efficiency and competitive environment. The major scope of the paper is analysing the performance of Indian commercial banks for the financial year 2018-2019. The opportunity to study in this attempt is the relative efficiency of Decision making units (DMU's) in India using Data Envelopment Analysis (DEA). This paper also exhibits and proved on the basis of financial data statistically insignificant at non-parametric approach. The results of secondary data show PSBs group shows higher efficiency as compared with the Pvt. SBs but on average Pvt. SBs are not much degrading its potential performance. [ABSTRACT FROM AUTHOR]

Artificial Intelligence (AI) has proved its significance in every field and is yet to be explored in the banking sector in India. The study aims to understand the customers' perception of using AI-based technologies in banks. Satisfaction is the first step towards acceptability and retention of customers towards lesser-known technology and automated process implemented in banks. The constructs of the study are referred from the technology acceptance model to define their level of acceptance and are divided into independent and dependent variables. The independent variables are "transparency", "awareness level", "security", "efficiency", "trust", and "social influence", and the dependent variable is "customer satisfaction". Therefore, the structural equation model was developed from the customers' (N = 500) response to retail banks in northern India. The study reveals that trust is the most significant factor for greater customers' satisfaction towards AI-enabled technologies in banks, followed by the customers' awareness level. The security of AI-based banks is the least important contributor to customer satisfaction. Additionally, the control variables, i.e., age and gender, govern the customers' perception. Understanding customer acceptability towards AI-based technology in retail banks is rare in emerging nations such as India. The findings provide insight into the formulation of compliance. It also highlights the regulation applicable to digital banks by the competent authority in India. The paper concludes by stating practical implications for banking authorities and decision-makers to incorporate AI into their system for customer service. [ABSTRACT FROM AUTHOR]

Purpose: Good earnings quality (EQ) provides reasonable assurance as to the reliability of future cash-flow generation capability of the borrowing firms and thereby mitigates the credit risk of the banks. Against the backdrop of the stressed-assets problem in public-sector banks in India, adversely impacting the public finance system, this paper aims to explore the role of EQ of the borrowers in obtaining bank credit and the ways to mitigate the problem. Design/methodology/approach: Using a sample of listed 3,486 non-financial and non-government firms, the authors apply Jones (1991) model to estimate their EQ. Then, the authors conduct Hausman's (1970) test and find the existence of a two-way relation between bank finance and EQ. The authors adopt a two-stage least-square regression model to test the nature of the association between the two after controlling for firm and industry-level characteristics. Findings: The empirical results suggest that there exists a two-way negative association between EQ and bank finance implying that the Indian firms tend to report abnormal accruals to enhance tangibility for enjoying higher credit limits and easier access to bank finance. Also, the poor EQ is associated with earnings volatility, adversely impacting the credit quality. The findings are consistent. Practical implications: The study highlights the role of EQ in mitigating credit risk and addressing adverse selection problems in granting credit by practicing bankers. Originality/value: The findings of the study enrich the literature on EQ, capital structure, agency theory and public finance in several ways and have significant ethical and policy implications in bank-finance-led economies. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to develop a holistic understanding of the state of implementation of the Basel III regulation in India. It offers essential insights related to its impact on the macroeconomy, non-performing assets, capital flows and modifications required for the Indian banking sector. Another central aspect of this study is the identification of challenges faced by bankers in implementing Basel III in India. Design/methodology/approach: A survey was conducted with the help of a well-structured close-ended questionnaire. It was based on six themes identified after a comprehensive review of the literature. Seven experts validated the construction of the questionnaire. A total of 18 responses (42.8%) were received. Findings: The findings substantiate the importance of Basel III regulations. Although high costs and roadblocks are involved in its implementation, yet, the benefits are notable. Banking experts sense the necessity to modify the Tier 1 ratio, risk-weights and ratings. It is felt that credit ratings will impact the capital and investment flows received by India. Research limitations/implications: The number of responses limits the ability to conduct several statistical tests. Practical implications: The findings support the industry's view that Basel III focuses more on industrialized countries and that many emerging countries lack the technology and infrastructure to implement it. Originality/value: Since the implementation of Basel, the norm is a continuous process; the findings provide vital insights to regulators and academicians focusing on the Indian banking sector about its current state to aid in developing a future roadmap. This paper delivers important values as follows: a holistic view of banking experts on Basel III in India, required modifications, its impact and future scope of research in this area. [ABSTRACT FROM AUTHOR]

This research paper presents a comprehensive analysis of literature in the context of NPA and its impact on the performance of banks, with specific reference to public sector banks and private sector banks. The analysis includes changing the definition and meaning of NPA by the regulator in India vis a vis its impact on the NPAs. Based on the analysis it is concluded that large no of intervention legal or otherwise such as merger and acquisition of the bank are followed by the regulator within Lakshmi Vilas bank, IDBI". The banking sector is the most essential part of the Indian financial system. A major obstacle for Indian banks is achieving operating productivity appropriate for modern financial inter-mediation under the existing ownership framework. Given the rise in nonperforming assets (NPAs), it has been surprisingly safe for PSBs to recapitalize, as the government's powerful ownership system has minimized the conflicts of interest that private banks would face. NPAs are a major source of worry for public sector banks, as they must be managed and regulated. NPAs have a negative impact on bank loans because non-recovery of loan payments and interest on the loan account negate the efficacy of the credit dispensation scheme. The non-recovery of loans also harms bank performance. Furthermore, banks with a large degree of NPAs must hold more owned funds as resources, build buffers and provisions, and have a buffer for loan losses. The main aim of this paper is to have a review on the banking system in India, NPA, NPA rise, extent and effect and suggested govt. measures to Solve NPA. [ABSTRACT FROM AUTHOR]

'Economic Offences' are the new genre of offences and a global phenomenon affecting individuals and institutions alike. These offences not only affect individuals and institutions but the economies as well. It is no exaggeration to say that no country remains unaffected by frauds. Even advanced economies like UK and USA could not escape the brunt of these offences. How to contain these offences remains a puzzling issue for many governments in the world. Economic offences include a wide spectrum of activities such as tax evasion, evasion of excise duty, company frauds, money laundering, foreign contribution manipulations, illicit drug trafficking, bank frauds, insurance frauds and so on and so forth. These activities have been made culpable by various legislations. Studies reveal that the rate of growth of economic offences is soaring up at an alarming pace. There is no sign that the incidence rate of these offences would come down. India is no exception to these trends. Trends show that the rate of the commission of the economic offences especially bank frauds is ascending. Recent arrests in matters of bank frauds vouch that banks have become easy prey for fraudsters and have been defrauded with impunity. This paper, in view of the broad spectrum of 'economic offences' focuses only on bank frauds, the legislations governing them, measures necessary to contain the bank frauds, etc. The paper compares the provisions of the Fraud Act of UK and the Bank Fraud Statute of USA with the Indian Penal Code and other relevant legislations of India. Secondary sources like statistical data from surveys conducted by agencies like Deloitte, National Crime Records Bureau, etc. have been used for the study. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the impact of banking relationships and ownership concentration on corporate cash holdings (CCH) in 333 Indian micro, small and medium-sized enterprises (MSMEs) for nine years (2011–2020). Design/methodology/approach: The authors use system generalized method of moments approach to examine the impact of banking relationships and ownership concentration on CCH. Findings: The paper finds that the firm's number of banking relationships share a concave (inverted U-shaped) relationship with the cash holding levels. Initially, the positive relationship may signal weak creditworthiness of MSMEs or be a consequence of bank free-rider monitoring issues. The negative effect after a certain level shows that the competition among banks reduces the firm's financial constraints and therefore makes the firms hoard less cash. The authors also document an inverse relationship between ownership concentration and cash holdings. The authors' results suggest that the presence of large shareholders acts as efficient monitors, reducing the risk of potential agency conflicts and thereby managerial entrenchment resulting in lower cash levels. This association remains unchanged for MSMEs in the service sector. However, the quadratic association between banking relationships and CCH vanishes in the presence of a service sector dummy in the regression model. The authors find a significant positive linear relationship in this regard. Originality/value: To the best of the authors' knowledge, this is the first paper that studies banking relationships and ownership concentration as determinants of Indian MSMEs. [ABSTRACT FROM AUTHOR]

This paper explores the magnitude of changes that is happening in the Indian banking sector in terms of the technology used, human resource deployed and change in the customer experience. The emergence of gig workforce has made banks rework their strategy. Here, we will describe how Indian banking sector is battling legacy systems and trying to adopt to latest technologies. The gig economy which has been playing a major role in many other sectors have not made a significant impact in the banking industry. The paper discusses the reasons this and gives a first-hand perspective of how the banking sector is getting disrupted. [ABSTRACT FROM AUTHOR]

The word 'Fintech' is the abbreviation of financial technology which means technology-enabled solutions to the problems in financial services sector. Technology has been an incumbent service-enabler into the financial service sector. The advent of Fintech, after US-subprime crisis (2008), is witnessed as the new-age era of opendigital banking wherein all solutions -- from retail to corporate banking are just a click away. Fintech is being used globally and has also marked its presence in India. Through this research paper, first we will try to find out the various Fintech solutions available globally and what are being used in Indian banking system. Second, this study tries to find out to what extent Fintech is being used as the core service-enabler by top five private and top five public sector banks in India. Finally, we find out how Fintech-enabled banking solutions have helped in bringing customer-centric solutions and in improving operational efficiency of these banks. The paper suggests further research work in the area of regulatory framework required for a more robust Fintech based banking solutions. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims at analysing the socio-economic characteristics, mobile phone ownership and banking behaviour as key determinants of digital financial inclusion in India. Design/methodology/approach: This study is based on the Global Findex Survey of the World Bank covering 3,000 adult individuals in India. Simple statistical tools such as descriptive statistics, chi-square test and regression analysis with a marginal effect have been used for the data analysis. Findings: About 35.2% of respondents have reported using digital financial services in the country. There is a significant association between the socio-economic profiles of individuals with the adoption of digital financial services in terms of gender, age, education, occupation and income. The marginal effect indicates that socio-economic factors, mobile phone ownership and banking behaviour of individuals towards borrowings and savings have indicated significant influence on digital financial inclusion. The analysis depicts that male with higher age, education, working status and higher income are more likely to adopt digital financial services. Further, individuals with mobile phone ownership and utilising banking in terms of borrowings and savings are more likely to adopt digital financial services. Practical implications: As digital banking services have emerged as a preferred channel for financial service delivery, this study provides timely insights on developing user driven-strategies for promoting digital financial services. Originality/value: Socio-economic characteristics, mobile phone ownership and banking behaviour are critical determinants of financial inclusion, so assessing its implications in the era of digitisation becomes imperative. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2022-0673. [ABSTRACT FROM AUTHOR]

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The increasing non‐performing assets (NPAs) and to meet the higher funding needs, India witnessed the biggest consolidation in public sector banks. In India the surging NPAs is long witnessed concern and major economic reforms were initiated in Indian banking to curb the issue. The recent merger has brought in a major policy concern with this consolidation which is availability of loans to smaller businesses. The paper analyses the impact of banks consolidation on Indian economy by considering both positive as well as negative aspects of banks mergers. The paper also presents the history of Indian banking and recommending a way forward. [ABSTRACT FROM AUTHOR]

Purpose: The paper measures the degree of bank competition in Indian banking over the period 1996–2016. Using bank-level annual data, we revisit the case of banking competitiveness during the prefinancial and postfinancial crisis and examine whether the global financial crisis alters the level of bank competition in India. Additionally, this paper addresses the misspecification issues associated with the widely used Panzar–Rosse model in Indian banking context. Design/methodology/approach: We apply Panzar and Rosse (1987) H-statistic and evaluate the degree of bank competition by estimating the extent to which changes in input prices are reflected in revenues earned by banks. Subsequently, we link this measure of competitiveness to a number of structural indicators (HHI and CRn) to examine the structure-conduct-performance hypothesis, which assumes that a concentrated banking system can impair competition. The simple panel regression model was used to handle the empirical estimations. Findings: findings reveal that the Indian banking system operates under competitive conditions and earns revenues as if under the monopolistic competition. We also find evidence that Indian banks are competitive, even under a concentrated market structure. This observation runs, in contrary, to the prediction of the structure–conduct–performance hypothesis. The findings also indicate the differences in the estimated H-statistic value after considering the misspecifications of the P–R model. Practical implications: From policy perspectives, policymakers should focus more on maintaining an optimal level of bank competition by mitigating entry restrictions, exercising less consolidation and withdrawing overregulation from banking activities. A competitive banking industry ensures both efficiency and stability. Social implications: A competitive banking sector by lowering interest rates margin provides easier access to finance to both households and small and medium enterprises (SMEs). Originality/value: This is the only study that addresses the misspecification of the P–R model while assessing competition in Indian banking and provides a thorough understanding of the role of concentration on bank competition. [ABSTRACT FROM AUTHOR]

Purpose Under the traditional franchise value paradigm, competition in banking markets is considered to be risk enhancing because of its tendency to raise interest rates on deposits. Taking a contrarian view, Boyd and De Nicolo (2005) have argued that competition in the loan market can lead to lower interest rates and hence reduce bank risk-taking. Following these contradictory theoretical results, the empirical evidence on the relationship between risk and competition in banking has also been mixed. This paper analyses the competition–stability relationship for the Indian banking sector for the period 1999-2000 to 2012-2013.Design/methodology/approach Banking competition is measured using structural measures of concentration, namely, five-bank concentration ratios and the Herfindahl-Hirschman Index as well as a non-structural measure of competition – the Panzar-Rosse H-Statistic. Panel regression methods are used to estimate the relationships.Findings Our results show that while concentration leads to lower levels of default, market and asset risks, it exacerbates the levels of capital and liquidity risks.Practical implications These results have interesting implications for banking sector policy in emerging economies. For instance, any strategy on entry of new banks has to be carefully coordinated with supervisory efforts and macro-prudential policy to derive the benefits of greater competition in the banking industry.Originality/value This is the first paper that analyses the competition – stability relationship using a large number of alternative measures for the banking sector, an emerging economy. [ABSTRACT FROM AUTHOR]

The public sector banks dominate India's financial sector and play a crucial role. Commercial banks are indispensable in the processes of capital circulation, capital integration, capital resource allocation, and overall societal demand and supply adjustment. But performing these vital roles, the commercial banks are associated with different risks out of which credit risk hampers them a lot. This risk attacks the major pillar of the banking industry i.e., solvency on which the industry survives. In this paper, a modest attempt is made to identify the bank-specific determinants of credit risk in the public sector commercial banks in India. Data was collected from the RBI database for the period 2005 to 2020 for 13 banks. Variables pertaining to credit risk, bank size, capital adequacy ratio, profitability, liquidity and diversification were taken. These variables were analysed with the help of different panel data analytical tools. The size of the bank, represented by the log of total assets, and diversification, measured as the ratio of non-interest income to total income, were found to positively and significantly influence credit risk in public sector commercial banks. The Return on Asset, Loan-deposit ratio, and Capital adequacy ratio were found to be negatively correlated with credit risk. [ABSTRACT FROM AUTHOR]

A bank plays an important role in maintaining the economical condition of the country. Sound financial position of a bank is the guarantee not only to its depositors but is equally significant for shareholders, employees and whole economy as well. This study analyzes the financial performance of YES Bank & SBI, Lakshmi Vilas Bank (LVB) & DBS Bank India Ltd (DBIL) for the period of 2009 - 2020 by using CAMEL Model. The findings of this research reveal that net NPA (Non Performing Assets) and more advances are the major reasons for YES bank crisis. YES bank performs well up to 2017 but after that it begins to fall in terms of interest income, net profits etc., in 2020 its profit shows negative value. On the other hand, bad loans and capital inadequacy are the major reasons for failure of Lakshmi Vilas Bank (LVB) as its NPA and Advances increased excessively during the period of study. [ABSTRACT FROM AUTHOR]