About Banking Exam

Banking Sector

Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).

The banking sector plays a major role in the development of the economy, as it mobilizes deposits and provides credit to various sectors across India. In India, the banking sector collects surplus funds from customers/depositors in the form of deposits and channelizes them to borrowers in the form of loans.Banks are closely linked with our everyday lives and activities. Drawing salaries, paying bills, buying homes, building up savings and taking out loans all involve transactions with banks. Businesses also rely on the banking system for settlement of their transactions and meeting other financial needs.

Insurance Sector

Insurance in India refers to the market of insurance which covers both the public and private sector organizations. It is listed in the constitution of India in the Seventh Schedule as a Union List subject, meaning it can only be legislated by the Central Government only.

The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment. India allowed private companies in insurance sector in 2000, setting a limit on FDI to 26%, which was increased to 49% in 2014 and further increased to 74% in May 2021. Life Insurance Corporation of India has held a monopoly till up to date bit its market share slowly slipping.

Insurance Industry Structure

By 2020 Indian Insurance is a US $280 billion industry. However only 500 million people are covered under Mediclaim. ECGC ESIC and SIC provide insurance to niche market so their scope is limited by legislation but enjoy some special powers.