Indian Banking System

The recent empirical evidence, suggests that banking system contributes to economic growth more by improving the allocative efficiency of resources than by channeling of resources from savers to investors. An efficient banking system is now regarded as a necessary pre-condition for growth.

Recent Developments

RBI Prefers GDP over GVA Model

  • The Reserve Bank has switched back to the gross domestic product (GDP)-based measure to offer its growth estimates from the gross value added (GVA) methodology, citing global best practices.
  • Gross Value Added (GVA): It is a measure of total output and income in the economy (i.e. ....
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