-
I earn my living as a professional Banker. In fact sometimes I wonder that I do not know anything except for Banking and if I have to make a living through some other means or trade or vocation, I'll probably die hungry. Not that I know everything about Banking. In my 34 years of experience in Banking industry, I have found that this is the most mis-understood subject. Persons or professionals, who may know Accountancy, try to pass off as Bankers. So that brings me to the real issue. Accountancy and Banking are entirely different. In our schools and colleges and professional courses, we teach accountancy but don't teach Banking.

 In life every activity, be it manufacturing or trade or services or profession or for that matter pure household work, gets converted into money at the end, and everybody has to deal with a Bank. So it is extremely important for everybody, whatever he or she is doing in life, to learn elements of Banking. Our education system does not take care of this. So the purpose of this blog would be to elucidate Banking for Beginners.

Comments

Post a Comment

Popular posts from this blog

Online (Alternate) Dispute Resolution

-
  The Mediation Act, 2023 (Act no 32 of 2023) which received the President’s assent on 14th September 2023 and was published in the Gazette of India on 15 th September 2023 has given a new dimension to the Alternate dispute resolution mechanisms in India.   So let us first understand what Alternate Dispute Resolution (ADR) is. Disputes arise when one party raises an issue concerning another party , generally through legal channels. This means that one party initiates legal proceedings against the other party. Under the   normal dispute resolution process, the matter is adjudicated by a court of law with an inherent right to appeal by the litigant who doesn’t accept the adjudication. The appellate process is also multi-layered with High Courts and the Supreme Court being Courts of Appeal. This long legal process delays the final resolution of the initial issue, with delays sometimes stretching to years and decades. As of the en...
Read more

Debt Resolution Process - Indian perspective

-
In this blog, we shall discuss evolution of Debt Resolution process in India and provisions of three main debt resolution legislations. The blog is meant to present the subject in a nutshell, to any person who is interested in this subject. Debt resolution or settlement   is an arrangement whereby creditors settle their dues from the debtor / borrower for a certain reduced amount, which ensures that they are able to recover at least part of their dues as against the possibility of a total loss. Thus the process tries to protect and balance the interest of both creditors and debtors. Historical perspective Reference to the concept of debt resolution can be found in early Roman law doctrine of Cessio bonorum   (Latin for "surrender of goods"). It meant a voluntary action by a debtor to surrender goods   to the creditors . It did not include a discharge from liability unless the property ceded was sufficient for the purpose, but it secured the debtor from personal arrest. T...
Read more

Risks in Banking and their management

-
Current turmoil in some US and European Banks has raised questions (in minds of general public) about various risks being faced by Banks, especially in the Indian context, and what measures Banks adopt for mitigation of such risks   Risk in Banking According to Wikipedia, The Oxford English Dictionary (OED) 3 rd edition defines risk as: “(Exposure to) the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility.” Risks are inherent in business of banking. A bank which does not take fair amount of risk cannot grow. Excessive risk may result in faster growth in the short term but at the same time could lead the Bank to a situation which may not be good for its stakeholders.   As Banks primarily deal with money, perception of risk regarding Bank’s business or stability acquires added significance. Trust is the essential factor in business of banking and therefore it’s very important for Banks to see that...
Read more