Problems Identified By The Narasimham Committee Essay Example for Free

Problems Identified By The Narasimham Committee Essay 1. Directed Investment Programme : The committee objected to the system of maintaining high liquid assets by commercial banks in the form of cash, gold and unencumbered government securities. It is also known as the statutory liquidity Ratio (SLR). In those days, in India, the SLR was as high as 38.5 percent. According to the M. Narasimhams Committee it was one of the reasons for the poor profitability of banks. Similarly, the Cash Reserve Ratio- (CRR) was as high as 15 percent. Taken together, banks needed to maintain 53. 5 percent of their resources idle with the RBI. 2. Directed Credit Programme : Since nationalization the government has encouraged the lending to agriculture and small-scale industries at a confessional rate of interest. It is known as the directed credit programme. The committee opined that these sectors have matured and thus do not need such financial support. This directed credit programme was successful from the governments point of view but it affected commercial banks in a bad manner. Basically it deteriorated the quality of loan, resulted in a shift from the security oriented loan to purpose oriented. Banks were given a huge target of priority sector lending, etc. ultimately leading to profit erosion of banks. 3. Interest Rate Structure : The committee found that the interest rate structure and rate of interest in India are highly regulated and controlled by the government. They also found that government used bank funds at a cheap rate under the SLR. At the same time the government advocated the philosophy of subsidized lending to certain sectors. The committee felt that there was no need for interest subsidy. It made banks handicapped in terms of building main strength and expanding credit supply. 4. Additional Suggestions : Committee also suggested that the determination of interest rate should be on grounds of market forces. It further suggested minimizing the slabs of interest. Along with these major problem areas M. Narasimhams Committee also found various inconsistencies regarding the banking system in India. In order to remove them and make it more vibrant and efficient, it has given the following recommendations. Narasimham Committee Report I 1991 The Narsimham Committee was set up in order to study the problems of the Indian financial system and to suggest some recommendations for improvement in the efficiency and productivity of the financial institution. The committee has given the following major recommendations:- 1. Reduction in the SLR and CRR : The committee recommended the reduction of the higher proportion of the Statutory Liquidity Ratio SLR and the Cash Reserve Ratio CRR. Both of these ratios were very high at that time. The SLR then was 38.5% and CRR was 15%. This high amount of SLR and CRR meant locking the bank resources for government uses. It was hindrance in the productivity of the bank thus the committee recommended their gradual reduction. SLR was recommended to reduce from 38.5% to 25% and CRR from 15% to 3 to 5%. 2. Phasing out Directed Credit Programme : In India, since nationalization, directed credit programmes were adopted by the government. The committee recommended phasing out of this programme. This programme compelled banks to earmark then financial resources for the needy and poor sectors at confessional rates of interest. It was reducing the profitability of banks and thus the committee recommended the sto pping of this programme. 3. Interest Rate Determination : The committee felt that the interest rates in India are regulated and controlled by the authorities. The determination of the interest rate should be on the grounds of market forces such as the demand for and the supply of fund. Hence the committee recommended eliminating government controls on interest rate and phasing out the concessional interest rates for the priority sector. 4. Structural Reorganizations of the Banking sector : The committee recommended that the actual numbers of public sector banks need to be reduced. Three to four big banks including SBI should be developed as international banks. Eight to Ten Banks having nationwide presence should concentrate on the national and universal banking services. Local banks should concentrate on region specific banking. Regarding the RRBs (Regional Rural Banks), it recommended that they should focus on agriculture and rural financing. They recommended that the government should assure that henceforth there wont be any nationalization and private and foreign banks should be allowed liberal entry in India. 5. Establishment of the ARF Tribunal : The proportion of bad debts and Non-performing asset (NPA) of the public sector Banks and Development Financial Institute was very alarming in those days. The committee recommended the establishment of an Asset Reconstruction Fund (ARF). This fund will take over the proportion of the bad and doubtful debts from the banks and financial institutes. It would help banks to get rid of bad debts. 6. Removal of Dual control : Those days banks were under the dual control of the Reserve Bank of India (RBI) and the Banking Division of the Ministry of Finance (Government of India). The committee recommended the stepping of this system. It considered and recommended that the RBI should be the only main agency to regulate banking in India. 7. Banking Autonomy : The committee recommended that the public sector banks should be free and autonomous. In order to pursue competitiveness and efficiency, banks must enjoy autonomy so that they can reform the work culture and banking technology upgradation will thus be easy. Some of these recommendations were later accepted by the Government of India and became banking reforms. Narasimham Committee Report II 1998 In 1998 the government appointed yet another committee under the chairmanship of Mr. Narsimham. It is better known as the Banking Sector Committee. It was told to review the banking reform progress and design a programme for further strengthening the financial system of India. The committee focused on various areas such as capital adequacy, bank mergers, bank legislation, etc. It submitted its report to the Government in April 1998 with the following recommendations. 1. Strengthening Banks in India : The committee considered the stronger banking system in the context of the Current Account Convertibility CAC. It thought that Indian banks must be capable of handling problems regarding domestic liquidity and exchange rate management in the light of CAC. Thus, it recommended the merger of strong banks which will have multiplier effect on the industry. 2. Narrow Banking : Those days many public sector banks were facing a problem of the Non-performing assets (NPAs). Some of them had NPAs were as high as 20 percent of their assets. Thus for successful rehabilitation of these banks it recommended Narrow Banking Concept where weak banks will be allowed to place their funds only in short term and risk free assets. 3. Capital Adequacy Ratio: In order to improve the inherent strength of the Indian banking system the committee recommended that the Government should raise the prescribed capital adequacy norms. This will further improve their absorption capacity also. Currently the capital adequacy ration for Indian banks is at 9 percent. 4. Bank ownership : As it had earlier mentioned the freedom for banks in its working and bank autonomy, it felt that the government control over the banks in the form of management and ownership and bank autonomy does not go hand in hand and thus it recommended a review of functions of boards and enabled them to adopt professional corporate strategy. 5. Review of banking laws : The committee considered that there was an urgent need for reviewing and amending main laws governing Indian Banking Industry like RBI Act, Banking Regulation Act, State Bank of India Act, Bank Nationalisation Act, etc. This upgradation will bring them in line with the present needs of the banking sector in India. Apart from these major recommendations, the committee has also recommended faster computerization, technology upgradation, training of staff, depoliticizing of banks, professionalism in banking, reviewing bank recruitment, etc. Evaluation of Narsimham Committee Reports The Committee was first set up in 1991 under the chairmanship of Mr. M. Narasimham who was 13th governor of RBI. Only a few of its recommendations became banking reforms of India and others were not at all considered. Because of this a second committee was again set up in 1998. As far as recommendations regarding bank restructuring, management freedom, strengthening the regulation are concerned, the RBI has to play a major role. If the major recommendations of this committee are accepted, it will prove to be fruitful in making Indian banks more profitable and efficient.

Saving Private Ryan :: essays research papers

The book I read and am doing a presentation on is called Saving Private Ryan by Max Allen Collins. Saving Private Ryan is about the heroism of soldiers of soldiers and their duty during wartime, World War Two. This story is to remind you, the reader, that war is nothing but hell, orders on the front line can be brutal, and absurd. The story is set in Europe of 1944, as the Nazis are still advancing and taking over cities and countries. On June 6th, 1944, Captain Miller, and hundreds of other men leave Europe to accomplish one mission, Operation Overlord, also known as D-Day. When they get there, there will be a new task awaiting them. In saving Private Ryan, the same character is Capt. Miller. He is the leader of a squad of 7 men on a mission to save Pvt. James Ryan. Capt. Miller is a â€Å"to himself person†. He does not talk much when not in battle, and when he does talk, he is giving out orders. Capt. Miller played a major roll in this book. He was in charge of Company C of the 2nd Ranger Battalion, when landing on Omaha Beach. He then had to lead the 7 men on a long mission to save Private James Ryan. Private James Ryan is a very sociable person. He lost 3 brothers in the war, which is why he is getting sent home. I said he is sociable because when he was rescued towards the end, he enjoyed talking to Capt. Miller very much. He would tell stories about his childhood before he left for basic, with his 3 brothers. There were 7 men under Miller’s Command. They were Sgt. Horvath, Pvt. Reiben, Pvt. Jackson, Pvt. Mellish, Pvt. Caparzo, Medic Wade, and Cpl. Upham. They all fought against the German resistance to save Pvt. Ryan. One metaphor that was said in the novel was â€Å"Sounds like the Midnight Limited†. This was said by Pvt. Caparzo on the boat before they landed on the beaches. He was describing the boat movement as is sailed through the water. After reading Saving Private Ryan by Max Allen Collins, I would say the overall theme of the novel is heroic. I believe the overall mood of the novel is heroic because eight men took on a mission to save one soldiers life. I would say the overall mood/tone of this novel is courage.

Digital Fortress Chapter 30

Alfonso XIII was a small four-star hotel set back from the Puerta de Jerez and surrounded by a thick wrought-iron fence and lilacs. David made his way up the marble stairs. As he reached for the door, it magically opened, and a bellhop ushered him inside. â€Å"Baggage, senor? May I help you?† â€Å"No, thanks. I need to see the concierge.† The bellhop looked hurt, as if something in their two-second encounter had not been satisfactory. â€Å"Por aqui, senor.† He led Becker into the lobby, pointed to the concierge, and hurried off. The lobby was exquisite, small and elegantly appointed. Spain's Golden Age had long since passed, but for a while in the mid-1600s, this small nation had ruled the world. The room was a proud reminder of that era-suits of armor, military etchings, and a display case of gold ingots from the New World. Hovering behind the counter marked conserje was a trim, well-groomed man smiling so eagerly that it appeared he'd waited his entire life to be of assistance. â€Å"En que puedo servirle, senor? How may I serve you?† He spoke with an affected lisp and ran his eyes up and down Becker's body. Becker responded in Spanish. â€Å"I need to speak to Manuel.† The man's well-tanned face smiled even wider. â€Å"Si, si, senor. I am Manuel. What is it you desire?† â€Å"Senor Roldan at Escortes Belen told me you would-â€Å" The concierge silenced Becker with a wave and glanced nervously around the lobby. â€Å"Why don't you step over here?† He led Becker to the end of the counter. â€Å"Now,† he continued, practically in a whisper. â€Å"How may I help you?† Becker began again, lowering his voice. â€Å"I need to speak to one of his escorts whom I believe is dining here. Her name is Rocio.† The concierge let out his breath as though overwhelmed. â€Å"Aaah, Rocio-a beautiful creature.† â€Å"I need to see her immediately.† â€Å"But, senor, she is with a client.† Becker nodded apologetically. â€Å"It's important.† A matter of national security. The concierge shook his head. â€Å"Impossible. Perhaps if you left a-† â€Å"It will only take a moment. Is she in the dining room?† The concierge shook his head. â€Å"Our dining room closed half an hour ago. I'm afraid Rocio and her guest have retired for the evening. If you'd like to leave me a message, I can give it to her in the morning.† He motioned to the bank of numbered message boxes behind him. â€Å"If I could just call her room and-â€Å" â€Å"I'm sorry,† the concierge said, his politeness evaporating. â€Å"The Alfonso XIII has strict policies regarding client privacy.† Becker had no intention of waiting ten hours for a fat man and a prostitute to wander down for breakfast. â€Å"I understand,† Becker said. â€Å"Sorry to bother you.† He turned and walked back into the lobby. He strode directly to a cherry roll-top desk that had caught his eye on his way in. It held a generous supply of Alfonso XIII postcards and stationery as well as pens and envelopes. Becker sealed a blank piece of paper in an envelope and wrote one word on the envelope. ROCIO. Then he went back to the concierge. â€Å"I'm sorry to trouble you again,† Becker said approaching sheepishly. â€Å"I'm being a bit of a fool, I know. I was hoping to tell Rocio personally how much I enjoyed our time together the other day. But I'm leaving town tonight. Perhaps I'll just leave her a note after all.† Becker laid the envelope on the counter. The concierge looked down at the envelope and clucked sadly to himself. Another lovesick heterosexual, he thought. What a waste. He looked up and smiled. â€Å"But of course, Mr†¦.?† â€Å"Buisan,† Becker said. â€Å"Miguel Buisan.† â€Å"Of course. I'll be sure Rocio gets this in the morning.† â€Å"Thank you.† Becker smiled and turned to go. The concierge, after discreetly checking out Becker's backside, scooped up the envelope off the counter and turned to the bank of numbered slots on the wall behind him. Just as the man slipped the envelope into one of the slots, Becker spun with one final inquiry. â€Å"Where might I call a taxi?† The concierge turned from the wall of cubbyholes and answered. But Becker did not hear his response. The timing had been perfect. The concierge's hand was just emerging from a box marked Suite 301. Becker thanked the concierge and slowly wandered off looking for the elevator. In and out, he repeated to himself.

Hurricane Katrina Levee Failure - 2081 Words

Jeff Whitson Professor Kathy Freeman Eng 1A M,W 9 April 2012 Blame for Katrina Damage: The Corps Alone? In august 2005, the State of Louisiana was hit with one of the most devastating natural disasters the United States has ever seen. New Orleans specifically was among the cities who felt the full force of Hurricane Katrina. While the storm itself was very powerful the damage wasn’t caused necessarily by the hurricane but by the failure in the levee system. According to Jennifer Trevedi, In the book, Encyclopedia of Disaster, Jennifer Trevedi describes the extent of the damage through breaches of the levee. Trevedi says, the levees were breached in over fifty different spots flooding the St. Bernard and Plaquemine parish.†¦show more content†¦This is also seen in In Andrew Revkin’s â€Å"Lost Chances to Avert a Disaster; Competing Interests Stalled New Jersey Flood Project,† written in the New York Times on September 26 1999, Revkins talks about how over a dozen communities in New Jersey were susceptible to floo ds. The U.S. Army Corps of Engineers came up with multiple plans over a 30 year period. but, because Federal, State, and Local agencies had different ideas of what was the best plan the U.S. Army Corps of Engineers were left in a stalemate (3,4). Whether it’s the State of Louisiana or others the Corps have been under constant push back because everyone involved in the planning of the levee system has different ideas of the safiest and most beneficial design for the area. Unfortunately not every design is going to benefit all parties involved. While a dozen communities are involved in the decision making of how to build the levees so every town will have maximum protection the Corps is put in a situation where with so many people involved they cant get much accomplished. And, when a disaster happens everyone points the finger at the Corps which isn’t right considering the constant push back from other sources. History has shown that the Corps has to deal with outside so urces when they make a decision to build the levee system up. In Karen O’Neill’sShow MoreRelatedThe Mitigation Measures Necessary For Emergency Relief Measures1698 Words   |  7 Pagesmeasures had been utilized. The mitigation measures necessary to prevent this disaster would have been a fraction of the cost spent on emergency relief measures. For many people in New Orleans this scenario was a reality when Hurricane Katrina happened. Hurricane Katrina caused one hundred and thirty five billon dollars in damage and the death of at least nine hundred and eighty six lives (Plyer, 2014). The city lost all government control and the city fell victim to anarchy. There was littleRead MoreEssay on The Cause of the Devastation of Hurricane Katrina927 Words   |  4 Pageshistorical event of Hurricane Katrina, a category three hurricane with winds ranging from 111-130 mph, in August 2005 revealed major structural failures in the levee systems of New Orleans. Though not all structural failures are as catastrophic, the breeched levees led to loss of life, homes, businesses, highways, and left a trail of destruction that is still being repaired today. The result of this failure led to lawsuits, conspiracy theories, and court cases. Hurricane Katrina had a major effectRead MoreFault For The Recovery Efforts Of Hurricane Katrina1511 Words   |  7 Pagesarticles written on the organizations most at fault for the recovery efforts of hurricane Katrina, most of the blame is wrongfully pointed towards FEMA. In fact, most experts in the hurricane field knew a storm the size of Katrina would absolutely decimate the city of New Orleans. The levee system was the primary failure point as mention by The Times-Picayune (2002), â€Å"another scenario is that some part of the levee would fail†. These levees, combined with the geographical properties of the cityRead MoreNew Guidelines And Infrastructure Improvements In New Orleans Essay1220 Words   |   5 Pages New Guidelines and Infrastructure Improvements in New Orleans With the tremendous loss of life and destruction of property that resulted from Hurricane Katrina, the American Society of Civil Engineers and the U.S. Army Corps of Engineers (USACE) began redesigning and implementing new hurricane prevention system guidelines. Through extensive studies, it was evident that the structures for the levees were constructed on weak and compressible soil. â€Å"Although the geology of the area was relatively wellRead MoreEssay on How the Government Failed the Victims of Hurricane Katrina1005 Words   |  5 Pagesduring times of disaster, the people devastated by Hurricane Katrina were not effectively facilitated as according to their rights as citizens of the United States. The government’s failures to deliver assistance to citizens stem from inadequate protection systems in place before the storm even struck. The Federal Emergency Management Agency and the Department of Homeland Security were the two largest incumbents in the wake of the storm. The failure of these agencies rests on the shoulders of thoseRead MoreThe System Failures From Limited Funding2635 Words   |  11 PagesLevee System Failures from Limited Funding Abstract Hurricane Katrina was one of the most damaging hurricanes in the U.S. history. This disaster was not only due to natural causes, but to the catastrophic levee failure resulting from the storm surge. The public widely reprimanded the U.S. Army Corps of Engineers (USACE) afterwards since they built the New Orleans Levee System. However, the Corps of Engineers was unable to rebuild the outdated levee system due to lack of federal funding. This paperRead MoreA Look Into Why The Levees Failed During Hurricane Katrina Essay1773 Words   |  8 PagesA look into why the levees failed during Hurricane Katrina? November 13, 2016 Table of Contents Abstract Page 3 Report Pages 4-7 Conclusion Page 8 Works Cited Page 9-10 Abstract This research project is â€Å"A look into why the levees failed during Hurricane Katrina?† This report includes a brief descriptionRead MoreHurricane Katrina And Its Impact On The United States1592 Words   |  7 PagesHurricane Katrina is considered as one of the worst hurricanes ever recorded in the history of the United States. It was the sixth strongest Atlantic hurricane ever and the third strongest on record that had reached the United States (Chambers, 2007). According to Brinkley (2006), the hurricane occurred on August 29th, 2005, and had a massive physical impact on the land and to the residents of New Orleans City .Before the hurricane; there was massive destruction of the wetlands besides constructionRead MoreDisaster Management Of The Hurricane Katrina Essay1596 Words   |  7 PagesIntroduction In today’s world, there has been one disaster or another, and hurricanes are one of those disasters that always happens. But, for one reason or another we are never prepared or understand the danger of any type of hurricane over a category one. Most of us have been through many hurricanes, like this learner who has lived in Miami, Fla. for over 30 years, and experienced her last hurricane which was Hurricane Andrew. Warnings are always given, first responders are trained to all waysRead MoreHurricane Devastation Of The Hurricane1763 Words   |  8 Pages Abstract Hurricane Katrina was considered as one of the worst hurricanes ever recorded in the history of the United States. It was the sixth strongest Atlantic hurricane ever and the third strongest on record that had reached the United States. According to Brinkley (2006), â€Å"Katrina was the eleventh tropical storm, fifth hurricane, third major hurricane, and second Category 5 hurricane of the 2005 Atlantic hurricane season.† The hurricane occurred on August 29th, 2005, and