NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Commercial Banking System & Role of RBI

Internal Assignment Applicable for June 2021 Examination

Assignment Marks: 30

Instructions:

 All Questions carry equal marks.

 All Questions are compulsory

 All answers to be explained in not more than 1000 words for question 1 and 2 and for

question 3 in not more than 500 words for each subsection. Use relevant examples,

illustrations as far as possible.

 All answers to be written individually. Discussion and group work is not advisable.

 Students are free to refer to any books/reference material/website/internet for

attempting their assignments, but are not allowed to copy the matter as it is from the

source of reference.

 Students should write the assignment in their own words. Copying of assignments from

other students is not allowed

 Students should follow the following parameter for answering the assignment questions

1. Indian Banking has witnessed major changes starting from nationalization in 1969 of 14

private sector banks again to privatization of banks in 1990s. Year 2014 resulted in

setting of small Payment Banks in different nooks & corners of the country to a

diametrically opposite step of mergers and consolidation of many weak public sector

For Theoretical Answer

Assessment Parameter Weightage

Introduction 20%

Concepts and Application related to the question

60%

Conclusion 20%

For Numerical Answer

Assessment Parameter Weightage

Understanding and usage of the formula

20%

Procedure / Steps 50%

Correct Answer & Interpretation

30%

NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Commercial Banking System & Role of RBI

Internal Assignment Applicable for June 2021 Examination

banks with a few large banks in 2018/19. What has been the economic & financial

compulsions/reasons for such changes in five decades? (10 Marks)

2. Independence of RBI has been a major subject of debate in India of late. A few

Governors resigned on this issue, as there was too much interference from the

government in deciding the policies of RBI. Do you agree/disagree on the question of

RBI deciding its own course of action while formulating macroeconomic policy of

country or should it listen to its political masters? (10 Marks)

3. Non-Performing Assets (NPAs) in the Indian Banking sector has become the subject of

much discussion and scrutiny. Bank’s lending capacity has been severely eroded by

mounting NPAs, net worth of many banks have declined and a number of banks have

reported huge losses. In recent year’s plethora of rules and regulations have come from

RBI, Government, IMF, BASEL recommendations, etc to keep a tab on stressed assets

and timely resolution.

In light of above statements:

a. Write the major reasons for increase on NPAs since last 10 years (5 Marks)

b. According to you what would be the mitigating factors/solutions for NPA management.

(5 Marks)

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