Social Environment Of Banking Sector
Before nationalization of the banks the control of banks were in the hands of the private parties and only big business houses and the effluent sections of the society were getting benefits of banking in India. In 1969 government nationalized 14 banks. To adopt the social development in the banking sector it was necessary for speedy economic progress consistent with social justice in democratic political; system which is free from domination of law and in which opportunities are open to all. Accordingly with national and social objective bankers were given direction to help economically weaker section of the society and also provide need based finance to all the sectors of the economy with flexible and liberal attitude. Now the banks provide various types of loan to farmers, working women, professionals, and traders. Also on apart from the recently education loan to the students and housing loans, consumer loans, etc…
Banks having big client or big companies say reliance etc…have to provide something like personalized banking to their clients because these customers do not believe in running about and waiting in queues and getting their work done. The bankers have to provide these customers with special provisions and also at times benefits like food and organize parties for them. But the banks do not mind incurring these costs because of the kind of business these clients bring for the bank.
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