Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. Niche banking will lead to Indian financial sector getting some niche and specialised players of global and Indian origin and create a focus on specific areas, which will help industries as well as the banking sector become more competitive and innovative. Elaborate. (250 words)
Difficulty level: Moderate
Reference: Insights on India
Why the question:
The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2022 Secure timetable.
Key Demand of the question:
To write niche banking, its successes and limitation with respect to banking system of India.
Directive word:
Elaborate – Give a detailed account as to how and why it occurred, or what is the context. You must be defining key terms wherever appropriate and substantiate with relevant associated facts.
Structure of the answer:
Introduction:
Begin by defining niche banks.
Body:
First, mention a few features of niche banks.
Next, write about the various advantages offered by the niche banks in the India macro-economic set up.
Next, evaluate the successes and limitations of Niche banks in Indian set up.
Conclusion:
Conclude by writing a way forward to overcome the limitations.
