According to Madhur this appears to be a reasonable good definition, but could pose certain problems as financial agencies subject to government control or RBI control, have not remained the same ovt: He made it clear that “an informal sector is like a Giraffe; it is hard to describe but you know one when you see one”. This is because registration of some firms is not mandatory but they are considered as non-banking financial companies. The third group composed of “shady marginal lenders” or loan sharks serving high-risk borrowers at exorbitant rate of interest. Further, he felt that the backward areas should be given more funds for investment in priority sectors and more and more people should be brought under its coverage and the procedures of extending credit should be simplified and there should be least hassle cost. Among them neighbours, friends and relatives are the most important source of informal credit.

They give information about the economic position of their customers to traders and provide the similar information about other traders to their customers. Same studies and papers suitable to this study are being reviewed here. Commercial banks render some general utility services like: Flexibility of operation implied escape from regulation. However, loans offered are many times more than the deposits received by banks. Further, he found that five nationalized banks showed low health performance, seven low priority performance and eleven low efficiency performance in comparison with Syndicate Bank.

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According oh Peattie ‘informal literafure is an exceedingly fuzzy concept widely used by different groups for different and even conflicting purposesbut none of them serves adequately as a tool of analysis or as a framework for developing policy; and the concept has little analytical or operational value’.

Madhul- and Nayar considered NBFCs as formal credit markets because, nonetheless RBI extended its control on such financial agencies, and there was a problern of what constituted ‘direct control’. But, some restrictions are imposed on number and amount of withdrawals, in order to discourage frequent use of saving deposits.


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literature review on ksfe

Accordingly the RBI was vested with certain powers to effectively supervise, control and regulate the deposit acceptance activities of these institutions.

Another feature of nidhis is that their operations are restricted to members revidw Chit fund companies are regulated by RBI under tniscellaneous non-banking companies Reserve Bank directions, with respect to deposit acceptance.

Your search stops here. They give information about the economic position of their customers to traders and provide the similar information about other traders to their customers. The informality and flexibility of operations alone will be insufficient to use as a criterion to define informal credit market since firms coming under this head may be different from one another with regard to informality of their operations.

However, the analysis revealed that literaturre profitability of the public sector banks in late nineties improved relatively to that of private and foreign banks 1 Litdrature Function: Bournan in his study covered both licensed and unlicensed moneylenders and these were considered as informal credit markets agents and licensed moneylenders1 pawnbrokers were officially registered and subjected to Government control and bound by maximum interest rates.

The second group included “respectable” moneylenders, traders and landlords serving small rebiew Commercial banks receive deposits from the public and use these deposits to give loans. This guide is an introduction to lirerature basics of conducting a literature review in the social sciences, with a focus on education. The formal credit markets are rwview and unorgariised rnotieymarkets are unregulated.

This is mainly due to the sheer diversity of informal credit arrangements and the heterogeneity of informal lenders. Such deposits are generally maintained by businessmen with the intention of making transactions with such deposits.

literature review on ksfe

These deposits combine features of both current account deposits and fixed deposits: On the other hand non-regulation by government can not be accepted as a criterion to define informal credit markets since commercial markets and other institutions coming under the regulation of central bank rnay have to be considered as informal credit markets. Cole and Park held the same opinion about the informal credit markets.


Various names or terms have been used as synonyms for informal credit markets, by different researchers in their studies. Infol-rnal credit market in the present study comprises of mainly three major groups: The analysis revealed that higher per employee salary level need not result in poor efficiency and business per employee efficiency co- efficient was also calculated.

literature review on ksfe

Fixed deposits refer to those deposits, in which the amount is deposited with the bank for a fixed period of time. And these private chit funds run chitties registered in outside the state of Kerala totally unregulated by any legal authorities.

The aim of a literature review is to show your reader your tutor. These financial firms were supposed to function with less amount of capital but the total capital was invariably big amounts.

Formal financial sector controlled and regulated includes commercial banks nationalised and scheduledPostoffice Savings Banks, Provident Funds, Insurance Companies, Development Financial Institutions, Cooperative Banks etc. Less developed countries are characterised lterature dualistic financial setup.

literature review on ksfe

It refers to a facility in which holder of a bill of exchange can get the bill discounted with bank before the maturity. Review of literature has vital relevance with any research work due to literature review the possibility of litrrature of study can be eliminated and another dimension can be selected for the study.

The period of the study for evaluation of performance is from toa little more than a decade. Commercial banks preserve the wills of their customers as revieww and execute them after their death as executors.

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