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The government had notified the merger of Corporation Bank and Andhra Bank with Union Bank effective April 1, 2020. “The migration has been done with least inconvenience to the customers as no change in their account number, debit cards or netbanking credentials were effected.” Although the Corporation Bank branches have been allotted new IFSC codes, the old IFSC codes will continue to work for inward transfers up to March 31, 2021. Following the integration, customers of the erstwhile Corporation Bank can use internet banking, mobile banking, UPI and other digital services of Union Bank. The bank has said that this is a new record as the process has been completed within just eight months of the amalgamation on April 1, 2020. Comparatively fewer businesses are affected by debt epidemic, but it still exists.Mumbai: Union Bank of India has completed the IT integration of Corporation Bank with itself. It even affects businesses that take term loans and working capital loans from the banks and cannot repay it. This can be damaging to people’s personal finances. The habit of borrowing more than a person can afford to repay is actually a personal bad habit, however, the easy lending policies of banks add fuel to the fire. Say a person is in the habit of maxing out his credit card every month and repays the bare minimum then he will spiral into debt very fast. This is not the risk of the bank per se, but this is the risk that people take on themselves while dealing with a bank. This also increases the expenses that banks have to incur to safeguard their systems, which are eventually charged from the customers. With the rise in internet banking, there will be a more innovative way for conmen and robbers to cheat people. There have been robberies where robbers have stolen millions of dollars through the internet, without entering the bank premises physically. Now more people are exposed to the risk of credit card thefts, stolen passwords, net banking frauds, etc. The rise in internet banking has given rise in cybercrime as well. The reach of the banks is unlimited and it has helped in making the world a global village. Multinational banks aids in remittance of cash, exchanging one currency for another aids in export by transferring documents and payments lend money to government, institutions and other world organizations. Many banks operate at the multinational level, this has helped people and businesses in a way that was not possible before the establishment of modern banks. This creates employment and the villagers can also benefit from facilities of electricity and internet. Furthermore, when a new bank branch opens in a village, it needs facilities such as 24-hour electricity supply, internet connection, new staff etc. Secondly, with the banks opening their branches in the backward areas, the rural population has benefits of modern bank facilities such as check-in accounts, ATM’s, locker facility, etc.
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This leads to the development of modern infrastructure and methods in rural areas, thereby bringing in growth. Firstly, the government makes it mandatory for the banks to lend to specialized sectors such as agriculture, rural infrastructure, etc.
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Modern banks started providing cheaper loans to the underprivileged section of the society, breaking the whole expensive loans system.īanks aid rural development in more than one way. These loans were given at exorbitant interest rates that most people couldn’t afford to pay, in the process the borrower would always remain in debt.
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Availability of Cheap Loansīefore modern banks were established, people would borrow money from local money lenders, landlords, merchants or other wealthy individuals. It actually helps save a huge proportion of public wealth that used to get spoiled in storage. However, the modern banking system completely eliminated the need to store hard cash. There were so many instances when the money got stolen, eaten by the rats or simply rot through the years. They stored this cash in lockers, underground, with the grains, etc. Like any other institutions, commercial banks come with their own benefits and drawbacks, let’s look at them in detail.Īdvantages & Disadvantages of Banks Advantages of Banks Safety of Public Wealthīefore the introduction of the modernized banking system, people used to save their money in hard cash.