Who is the father of Indian banking?

Who Is The Father Of Indian Banking?

India’s banking sector has been fetching a good reputation on global platforms. The dynamic and robust attributes of the financial industry are becoming an easily accessible source for people. Moreover, the Reserve Bank of India stated that India’s Banking sector is exceptionally capitalised and well-maintained. So, we need to remember the personnel who have diversified our economic system tremendously and acquired the fame of The Father Of India Banking.

So, if you are willing to know Who Is The Father Of Indian Banking, go further with this article. For a brief introduction, let us enlighten you that Maidavolu Narasimham is considered the father of Indian banking due to his immense contributions to the banking sector. In this article, we will explain all the notions he had and how he was able to streamline the constructive measures of India’s banking system.

The History Of The Father Of Indian Banking

Now you must have a rough ideology about Who Is The Father Of Indian Banking, and he is non-other than Maidavolu Narasimham. He was born on 3 June 1927 and enlightened his banking recommendations throughout his lifetime. He passed away on 20 April 2021 due to Covid-19 complications deteriorating his health. We’d like to give you some important pointers to make you understand his historical approaches to the banking system.

• He was famed for being an Indian banker who performed as the thirteenth governor Of the Reserve Bank of India. His service period lasted from 2 May 1997 to 30 November 1977.
• His selfless initiatives and mindful contributions to the financial sector have made him gain the reputation of the Father of India Banking.
• He gave rise to several reforms in banking channels by recommending the best attributes, followed by introducing private banks, banking structures, development of asset recovery system, rural banking, etc.
• He tried to modernize public sector banking due to the escalating demands of the people.
• Narasimham has also handled the role of India’s executive director at the International Monetary Fund, the World Bank, and later at the Asian Development Bank.
• His service as the secretary in Finance made him acquire the best policies for the banking sector.
• Maidavolu Narasimham’s exceptional contributions have awarded him India’s second highest civilian honor, i.e. Padma Vibhusan, in 2000.

New Reforms Done By The Father Of Indian Banking

M Narasimham has put all his efforts into channelizing the Indian Banking system to the next level. He continuously tried to amplify the progress to satisfy the customers with reliable banking preciseness. Let us go through some pivotal works he has done in the three decades to enlighten the glory of the financial behavior of the country.

Reformation of the banking status

Narasimham was a high-committee of financial sector reforms in 1991 and Banking sector Reforms in 1998. He tried to infuse constructive reforms into the financial sector which has got regulated for most of the leading banking systems.

Reconstruction of the Asset

Narasimham created many genuine recommendations to heighten the proficiency of Asset Reconstruction Companies to guide the influence of bad debt. His effective committee has also generated the concept of asset reconstruction to tackle bad loans.

Structuring banks

For developing swift public sector banks and bank merging, Narasimham committee has recommended the best initiatives in 1991. Around 10 public sector banks have been merged to facilitate the best service was recommended by the Narasimham Committee.

Rural Banking 

In 1976, M. Narasimham was the author of Rural bank report which was implemented to dignify regional rural banks throughout India. His idea of developing rural banks is to energize the local appeal and gain professionalism through a commercial banking system.

Conclusion 

For decades, Narsimham tried to make the banking system progress and diversify with reputable means. He has constructed socio-economic growth for the Indian economy. The structural changes he has made will always be nurtured. So, his responsibility as the Father of India Banking will always be cherished by the citizens and the financial industry.