Machiavellian Monkeys, James Shreeve, Discover, June 1991 Essay

â€Å"The sneaky skills of our primate cousins suggest that we may owe  our great intelligence to an inherited need to deceive.†Ã‚  Machiavellian Monkeys, James Shreeve, Discover, June 1991. Fraud. Deception. Infidelity. Theft. When these words are spoken, or read, the first thought is of human traits. Not once would someone think of animals as being capable of such actions, but people forget that humans are animals, and that the human animal evolved from a creature that had common ancestry with the great apes. Is it surprising then that these seemingly humanistic traits are found in primates? James Shreeve discusses the findings of hundreds of primatologists, which support the notion of Machiavellian intelligence in primates. He studied Machiavellian Intelligence in baboons, chimps, lemurs and lorises, and concluded that social primates exhibit this intelligence and those that live in small groups or in solitude do not. First, let’s examine the term Machiavellian. The dictionary definition is: characterized by subtle or unscrupulous cunning, deception, expediency, or dishonesty. By suggesting Machiavellian intelligence, Shreeve implies that these types of behaviour are not simply conditioned responses to stimuli, but conscious thought. This might not be blatantly obvious as important to physical anthropology, but it does suggest a number of important ideas as to the development of man. Lesser primates, such as lemurs and lorises, do not exhibit any type of deceptive traits, but when more advanced primates are examined, it can be seen that as the size of the brain increases, there are increasingly more complicated tactics used to deceive others of their own species. It is interesting to note that humans have brains roughly three times larger than  would be expected, and also exhibit the most complex Machiavellian behaviours. An important observation that Shreeve points out is that primates such as the orang-utan, who lead solitary lives and have no need for social skills, do not exhibit any signs of Machiavellian traits. This observation, together with the observation of brain size and primate order, suggests that Machiavellian behaviour may not be a result of intelligence, but was, actually, an important factor in the development of it. For example, a creature that is able to consciously deceive others in order to get food or breed has a distinct advantage over those who do not. When considered with the need for large social groups, this ability of deception and trickery becomes even more important which can help explain why humans have evolved with their huge brains. Humans could not have become as successful as they have without incredible social skills, including those skills considered Machiavellian. Shreeve notes that this is also consistent with chimpanzees, who have a great advantage with these abilities. The advantage is a result of their social structure (large groups that constantly vary) meaning that there would be no advantage if chimpanzees lived solitary lives. If there is any doubt that Machiavellian intelligence gives an individual a greater chance of surviving and reproducing, the case of concealment, as observed with stump-tailed macaques and hamadryas baboons leaves no doubt. By concealing their relationship with, arousal by, or physical nearness to the potential mate from the dominant male(s), an individual finds breeding is possible; without this intelligence, it would be far less likely, if not impossible. Although Machiavellian behaviour is somewhat controversial in terms of it being human nature, it does seem to indicate intelligence not so different than that found in the great apes. Perhaps this is why people tend to resist the idea that humans are fundamentally Machiavellian in nature; it is behaviour that seems too animalistic. It does seem, though, that the exact  opposite could be true: Machiavellian behaviour is humanistic behaviour evident in the animals we call primates. No matter how we look at it, the fact remains that the observation of this type of behaviour in primates is significant to physical anthropology.

Education Beyond the Classroom

The assignment is going to outline how ‘Eureka! A Museum for Children’ plays a part in learning outside the classroom environment. The museum will be examined to see how it plays a role in life-long learning. We define learning outside the classroom as: â€Å"The use of places other than the classroom for teaching and learning. † Every young person should experience the world beyond the classroom as an essential part of learning and personal development, whatever their age, ability or circumstances.Learning is a process of active engagement with experience. It is what people do when they want to make sense of the world. It may involve the development or deepening of skills, knowledge, understanding, awareness, values, ideas and feelings, or an increase in the capacity to reflect. Effective learning leads to change, development and the desire to learn more. (DfEE 2000) Learning outside the classroom is about raising achievement through an organised, powerful approa ch to learning in which direct experience is of prime importance.This is not only about what we learn but importantly how and where we learn. (Learning Outside the Classroom (2006)) †¦ museums and galleries †¦, in themselves, understood as educational establishment. They were set up to enable people to educate themselves†¦ Museums were one opportunity among many of acquiring knowledge. (Hooper-Greenhill 1994, p. 1) Museums are still very much thought of as educational establishments but the audience for whom they cater for varies very much from one museum to another.Formal and informal educations are two terms that are used to describe the type of education that a person receives. Formal is the set ‘curriculum’ that is taught in the traditional school setting. Whereas informal education is the curriculum taught in museums or other institutes that are outside of the schools. (Hein 1998, p. 7) Children’s museums are not museums in the traditional sen se. They are different in their missions, in their approach and in their specifically targeted age-group. (Pearce 1998, p. 19) Eureka! s a museum that has been specially designed for a specific age group, and is the UK’s first and foremost museum for children. Historical context of Eureka! Eureka was first opened in July 1992 by HRHThe Prince of Wales, as an educational charity, the idea for Eureka was modelled on the North American concept of a Children’s Museum and remains to be the only museum of its type and scale. The basis of children’s museums is in interactivity, learning by doing, learning through fun, learning through play. (Pearce 1998, p. 6) Since it has opened it has enjoyed unrivalled success, proving popular with children, parents and teachers alike. At Eureka! there are over 400 hands on, must touch exhibits, each teaching children more about themselves and reflecting the world in which they are growing up in, it is achieved by a fun approach to learning and development. Eureka! meets National Curriculum requirements, it has six themed galleries and a full programme of interactive workshops covering an imaginative range of curriculum themes to support Foundation, KS1 and KS2 learning.The education service aims to take the hassle out of school visits by providing fully structured itineraries, picnic and storage facilities, staff support, teaching resources and work sheets. Museums are the world of ‘infotainment’ and ‘edutainment’ where people have fun but also learn something. (Pearce 1998, p. 80) Learning Experiences Teachers are provided with an education resource pack which includes detailed notes on how to get the best from each of the museum’s section and indicates links to the National Curriculum. There are also special workshops which may be booked for school classes. (Pearce 1998, p. 7) The museum also provides special designed packages for the school holidays and Science activities, also sleepovers that have to be pre-booked.‘Me and My Body’ encourages children to find out more about themselves by using the exhibits to discover how the body and the five different senses work, also it enables visitors to use various aids to experience what it is like to have a disability. ‘Living and Working Together’ that recreates an environment where visitors can discover the mysteries of daily life and try out the jobs people do in the many buildings on a high street and in the house.. Our Global Garden’ helps children the familiar ‘backyard' to amazing gardens that exist in the world. It is themed around seven different ‘gardens'; each telling their own unique story, whilst emphasising the inter-relationships between them, finding out what makes them precious and how best to look after them. ‘SoundSpace’ provides children with a unique experience, enabling them to explore and understand sound, music and performance t hrough state-of-the-art technology, by exploring the physics of sound by seeing and feeling vibrations and creating their very own musical sequences.Throughout the experience, Sound Space aims to enhance the understanding of Science, Technology, Engineering and Maths (STEM) by exploring the unique relationships that exist between music and creativity, science, technology and the arts in a fun and accessible way. Over the past three years Eureka! has been the lead partner for Creative Minds, a ? 3. 8 million pound regional initiative to encourage children’s interest and learning in STEM; to help in the creation of a future workforce. The ‘Creative Minds' project is to provide young people with learning opportunities in STEM from 2003 to 2006.Over 15,000 learning opportunities have been delivered to both young people, their teachers and those who work in the sector. (Publication Material, Creative Minds (2005)) ‘SoundGarden and Desert Discovery’, these galler ies aim to extend opportunities in the museum for babies and young children to develop their senses and stretch their imaginations. These galleries support early education principles of learning through play, reflecting the intentions of the Birth to Three Matters framework and the Foundation Stage curriculum.It is expected that the lifespan of exhibits vary from 5-7 years and that the cost of devising, designing, fabricating and installing new exhibits in the future will need to be raised from various sources including charitable foundations and corporate sponsorships. (Pearce 1998, p. 67) The latest two galleries opened in 2004 and respectively in 2005. The museum needs to keep abreast of changes in school education; for example, the National Curriculum, that now emphasises on practical experience. (McLean 2003, p. 113)Meticulous care is taken when devising and developing new exhibits for a children’s museum, to ensure that they will engage the target audience and enable th em to learn as well as have fun. Exhibits are tested and modified in the light of children’s reaction and views. There are opportunities for comments and suggestions. As child-centred organisations the museums concentrate their resources on ensuring that they serve the needs of the children. (Pearce 1998, p. 113) The learning experiences found in Eureka! helps the child to make sense of the world around them by making links between feelings and learning.This is part of life-long learning as these feelings stay with the child into adulthood and affect their behaviour, lifestyle and work. It influences their values and the decisions made. It allows the child to transfer learning experienced outside to the classroom and vice versa. A commitment to life-long learning can demonstrate a positive social role for a museum and can also meet the demands from funding bodies for demonstrating public benefit and greater public accountability. (American Association of Museums 1993 cited in McLean 2003, p. 114) InclusitivityEureka! is a registered Educational Charitable Trust, in 1987 with the support of the museum’s patron, HRH The Prince of Wales, business sponsorship, government grants and the local council, it found its town centre site in Halifax, it later opened in 1992. The museum is situated five minutes from the motorway in Halifax town centre, next to the railway station on a 12. 5 acre site. It is a two storey, visible steel, stone and glass exposed structure. The whole site is accessible to wheelchair users and there is level access with a lift between floors.The convenience of location and ease of access is an important dominant of usage, the access includes physical access for those who are physically disabled. A limited number of wheelchairs are available on loan and also has special parking for them. It has not debarred the disabled and has attempted to provide for their needs. (McLean 2003, p. 134) For anyone with visual or hearing impairments, there is a full range of multi-sensory, highly stimulating exhibits available. Programmes can be adapted for particular needs as long as the museum is informed beforehand for school groups.Museum information is available in large print and houses a ‘Talking map’ that talks in four different languages. It is ideal for partially sighted individuals but it does not include any Braille for the blind people, so in this case it is a disadvantage for this certain group. Throughout the entire museum there is no inclusion for the blind, even though the galleries and the museum are designed so that these consumers are still able to visit, but it can not be done alone, they need someone to accompany them but the essential carers are admitted free.The talking map also caters for people whose first language is not English. The site is well lit, with colourful lighting that attracts and engages the children into wanting to explore. The signage for directions are appropriate for the audience for whom it caters for, the children mostly, they are all big and colourful with pictures as well as writing. The gallery signage and information is at average eyelevel for all aged grouped children and legible. The toilets for both the able and disabled toilets are clearly marked and changing facilities are also available.The museum was established as an educational charity and not for profit organisation, therefore Eureka! receives no government funding and must rely upon admission fees. These admission fees combined with transport costs mean that individuals from disadvantaged backgrounds or in areas of deprivation are missing out on the experiences that are offered. The prices are debarring a group of individuals from using the museums. These independent museums depend on visitors, it is consumer oriented, and has to be user-friendly, so it has an instinct and a need to reach out and serve their public. Sekers cited in McLean 2003, p. 30) The museum has offers for educa tional visits and large groups in order to reduce the cost of the visits to the museum, but on an individual family outing the prices are fixed. (Eureka! Publication Material, Appendix I) Health & Safety The building has its own risk assessment form that must be filled out before a group of children are allowed to visit for educational school visits. The building and exhibits are designed to minimise risk of injury from slips, trips, falls and finger traps.All elements of the museum are constantly monitored and modified to meet current safety standards. All the signage is marked and the dangers indicated. The museum has a lost children procedure is in place with the staff having the appropriate confirmed by national qualifications. The museum has qualified First Aiders on duty every day and the staffs are checked for relevant criminal history. The maintenance activities are carried out in accordance with HSWA 1974 and MHSW Regulations 1999 by trained technicians.Electrical and porta ble appliance testing is carried out annually in accordance with 16th Edition Regulations. Also, the fire evacuations and training are carried out in accordance with Fire Risk Assessment and Fire Certificates. Group leaders are advised to carry out their own risk assessment in accordance with their organisations aims. (Appendix II) The museum provides the teachers with information sheets for each area of the museum. The risk assessments are available for operations and activities as appropriate with again all the signage clearly marked.As the museum is designed for ‘hands-on’ the risk assessment on all the equipment and facilities are checked daily and regularly to ensure they comply with safety regulations. Eureka! is covered by public liability and Employers liability insurances and has written accident and emergency procedures in place. Eureka! is licensed by local authority regulations for all safety, fire, plant and lifting equipment and appropriate certificates ar e held. ConclusionThere can be no absolute blue print for children’s museums beyond the key characteristics mentioned previously. Otherwise each group or organisation will have its own emphasis and idea of what makes their museum special and important to its area. Diversity is one of the strengths of the movement. The emphasis is always on learning, exploring, on discovery. For that reason, in developing a British model it may be appropriate to adapt the term children’s discovery centre or children’s discovery museum for future use.

3D Printing

How amazing would it be that everyone’s life could be saved, from needing a heart or needing an ear to have the ability to look and have a normal life? â€Å"Nearly 120,000 men, women and children currently need lifesaving organ transplants. †( Statistics | Donatelife) And the saddest thing is about â€Å"Every 10 minutes another name is added to the national organ transplant waiting list. †( Statistics | Donatelife) We are in need of organ donors, but not a lot of people want to donate their organs. Thanks to our new science we have new invited the 3D Printer. What is a 3D Printer? How does it work? What type of organs can it create? What is 3D printing? â€Å"3-D printing is a manufacturing process that builds layers to create a three-dimensional solid object from a digital model. †(3-D Printing) You might think this printer was something that was just now created in 2012 or 2013, but amazing the first 3D printer created was the one in 1985 and was given credit by Michael Feygen. â€Å"In the past, the cost of 3-D printing was expensive and the technology was only used by large corporations, but the development of desktop 3-D printers has made the technology more accessible to small and mid-sized businesses and home users. †(3-D Printing) What is cool about them now, is that they have been gifted with the right science to invite the 3D printer that can print out real working organs that can be transplant to people in need. How does it work, real organs for human transplants? â€Å"In two decades, 3-D printing has grown from a niche manufacturing process to a $2. 7-billion industry, responsible for the fabrication of all sorts of things: toys, wristwatches, airplane parts, food. Now scientists are working to apply similar 3-D–printing technology to the field of medicine, accelerating an equally dramatic change. But it’s much different, and much easier, to print with plastic, metal, or chocolate than to print with living cells. †(How 3-D Printing Body Parts Will Revolutionize Medicine) It might be easy creating these organs tissues for the human body, but unfortunately it is not as easy as you think it is. You cannot just randomly created a good 3D organ heart and expect for it to beat. â€Å"â€Å"For some tissues, even the simple ones, we don’t even know exactly what it takes to make the tissue behave like a real tissue,† says Lipson. â€Å"You can put the cells of a heart tissue in the right place together, but where’s the start button? †Ã¢â‚¬ (How 3-D Printing Body Parts Will Revolutionize Medicine) The way they prepare the stuff to make the tissue is can be a little confusing and time consuming. â€Å"They started by pipetting cells into petri dishes by hand. Then, led by Anthony Atala at the Wake Forest Institute for Regenerative Medicine, researchers began to seed those cells onto artificial scaffolds. Made from biodegradable polymers or collagen, the scaffolds provide a temporary matrix for cells to cling to until they’re robust enough to stand alone. †(How 3-D Printing Body Parts Will Revolutionize Medicine) In 1999 through 2001, Atala has been successful enough to have implanted the first grown lab organs into seven patients at the Boston Children’s Hospital saving their precious lives. What types of organs can it create? â€Å"In labs around the world, bioengineers have begun to print prototype body parts: heart valves, ears, artificial bone, joints, menisci, vascular tubes, and skin grafts. †(How 3-D Printing Body Parts Will Revolutionize Medicine) They are still being made today and maybe at this minute as you read this essay. Only a few have been implanted to real humans like the bladders that Atala has been successful to implant. As our technology and science improves, someday we will be able to replicate a whole human body and make it live life like a regular human. Having this 3D Printer since 1985 and improving from only being able to replicate tools to real working organs has changed our living styles. As the printer gets more science improvements and smarter; maybe later in the years, there could probably be more people surviving and not having to wait for a person to donate their original organs for their transplant. Just imagine the price it would probably be though, just to get 3D Printer Organs for a Transplant. Sooner or later, we will have the technology to give those people that are praying for an organ a chance of survival.

Sao Paulo water crisis adds to Brazil business woes Essay

Sao Paulo water crisis adds to Brazil business woes - Essay Example The Sao Paulo districts administrators are considering the possibility of rationing water for five out of seven days in a week. According to the laundry business owner, Mr. Soares, this move will affect him and the six employees he has at the laundry because they will lose their source of income (Costas 2015). Other businesses such as hairdressers, car washes, and restaurants are also worried about the impact of such rationing on their businesses. Some have resulted to purchasing water storage tanks to prepare for the rationing while others such as restaurants have adapted the use of plastic plates and cups to reduce their consumption of water. The article is important because it points out matters of concern on a national and global level. In recent times, climate change and water shortage have become a global issue. On the other hand, Brazil, which is one of the largest economies in South America, has gradually fallen into an economic crisis. Remarkably, the article quotes the chief economist of the largest private bank in Brazil who indicates that 2015 is projected to be a challenging year, and Brazil must tackle all its challenges as well as promoting growth strategies in 2016. Brazil’s economic situation is of global and local concern. In the past years, Brazil was constantly referred to as a stable and developing economy. The recent Brazil’s state affects global investors in addition to the citizen’s relying on the economy. Furthermore, the article is important because it touches on Brazil’s public services, which were subject to mass protests in 2013 and 2014 (World Bank 2015). The citize ns demanded higher quality services and transparency from the public service providers. The article mentions that the water situation could be foreseen since last year. However, none of the major parties mentioned the matter during the campaign season for the October elections. These factors point to the continued

'As large firms embrace the benefits of traditional marketing, they Essay

'As large firms embrace the benefits of traditional marketing, they must also embrace the rigours of Web analytics to measure - Essay Example With big companies spending huge amounts of resources to market their products, it is essential that they make good decisions on how to invest on their marketing endeavors and to measure the returns on these investments. One of the tools used to provide metrics relating to online marketing is web analytics. This paper will discuss the importance of web analytics in measuring organizations’ return on marketing investment. Web Analytics and Its Importance The web has grown to become a very powerful vehicle for communicating and marketing as noted by Burby and Atchison (2007, p1). It makes it easy for businesses to communicate fast and easily with millions of customers spread across the globe in real time. As a result, it has changed the speed at which businesses and their brands can be established and grow. The web has also shortened the distance between the marketer and the customer both physically and emotionally to the period of a click of the mouse Burby and Atchison (2007, p1). With many large organizations appreciating the value of having a web presence, they are prepared to invest if only there is bound to be good returns on their investment (Clifton 2012, p. 1). Organizations have therefore to decide how much to invest in their online marketing endeavours and establish the most cost effective way to market the site and have valuable leads that translate into sales. A few years ago, many organizations with a web presence could not tell who and how many visitors landed on their websites. This is no longer the case today. Many large organizations today have the capability of knowing a lot about the visitors to their websites and the activities that the visitors perform on these sites, thanks to web analytics Burby and Atchison (2007, p. 14). Web analytics involves collecting, measuring, analyzing and reporting data retrieved from the Internet with the aim of understanding and optimizing usage of the web as noted by Peterson (2004, p. 5). Some of the v ariables measured on-site include drivers and conversions. In other words, web analytics is mainly dedicated to generating more leads to an e-business, enhancing brand awareness, and learning more about customers and the business (Loveday & Niehaus 2007, p. 34). The information that the organization in this respect includes how the customers find an organization’s website, how much they spend on each webpage and what they do when they land on the site. An organization, for example, can get to know which of the landing pages on a website lead more customers to purchase its goods or services online. Using this information, the organization can further optimize its web pages or make changes to some of its pages to attract more conversions (Napier 2006, 225). In addition to these, the organization may rely on web analytics to find a clue as to why visitors leave their website or a particular web page (Plaza 2009, p. 478). With this information, an organization can attract more vi sitors to their website and convert them into paying customers. Web analytics can be done on-site and off-site. Off-site web analytics involves the measurement of a websites visibility, potential audience, and buzz on the entire Internet (Farris, Bendle, Pfeifer & Reibstein, 2009, p. 54). On the other hand, on-site analytics involves

The Oil Spill in The Gulf of Mexico Research Paper

The Oil Spill in The Gulf of Mexico - Research Paper Example This phenomenal and epic oil spill tragedy has remained so potentially capable of every single soul around the globe that no one is oblivious to the negative consequences it produced. This paper presents a thorough discussion particularly related to the infamous oil spill in the Gulf of Mexico that affected many and is still continually affecting the Gulf despite many human efforts made at a global level. Both short and long-term effects of this astoundingly horrific man-made disaster are scrutinized and results are presented in this paper backed up with recent research reports regarding the disaster. Myriad efforts made to control the mass destruction caused by the oil spill are also highlighted and discussed in the paper in special relation to the differences made by those efforts, and their contribution to the restriction of the devastation. The worst ever disaster that could be imagined by anyone turned into a reality-based incident when a semisubmersible offshore drilling rig ca lled Deepwater Horizon exploded in the Gulf of Mexico and got engulfed in indescribably horrendous flames before sinking in the deep waters in 2010. Immediate casualties reported following the incident did not appear to be do large as to wreak disastrous havoc in the surroundings and the rest of the world. About 17 turned out to be injured out of 126 people who were on board and 11 are still reported to be missing who are presumed to be dead now. (Raines). This presumption is based on the viewpoint that those missing ill-fated workers must be within immediate vicinity of the unpredictable explosion, as a result of which they remained incapable of finding an escape. The Deepwater Horizon did not immediately sink in the Gulf after the dreadful explosion, rather it remained afloat for almost two days engulfed by fiery flames and leaving behind plumes of thick black smoke that were phenomenal enough to be seen from space as well as the smoke plumes were reported to be more than many mil es long. The real disastrous reality was discovered some two days after the Deepwater Horizon had sunk in the Gulf. No person could imagine that the explosion of the oil drilling rig would lead to worst imaginable consequences concerning the casualties reported initially. It was only after the discovery was made regarding thousands of barrels of oil being dumped surreptitiously on daily basis into the ecosystems of the Gulf of Mexico that the real devastating consequences of the oil drilling rig explosion came to limelight. The story would definitely have ended with the sinking of Deepwater Horizon had it not been for the technical defect in the riser structure of the oil drilling rig that is meant for connecting the rig with the well. After the discovery was made about the daily loss of thousands of oil barrels in the water, immediate concerns regarding the Gulf’s ecosystems created a wave of pandemonium around the globe and a seemingly ended story turned into a vibrant live ly disaster in full swing. The oil leakage presented a major problematic and intricate issue because researchers reported that even with the use of the best and latest scientific technology like using sophisticated robots for detecting the bedrock of the problem, the oil leak effect could take months to be suppressed and finished forever. The catch-22 faced by the US Coast Guard

Finance and Accounting Essay Example | Topics and Well Written Essays - 2750 words

Finance and Accounting - Essay Example With the tightening of the environmental regulations, the environmental protection costs of the industry like pollution reduction, regulatory reporting, monitoring and waste management have increased over the years. In the conventional management accounting method the environmental costs are allocated as general overheads expenses such that the production managers are not aware of the environmental costs and do not have any impetus to reduce the same. Environmental management accounting involves the identification, analysis, collection and use of material information and other monetary as well as environmental cost related information, for the purpose of facilitating environmental and conventional decision-making in the organization. Unlike conventional management accounting which puts special emphasis on the identification of the environmental costs such as waste management cost, environmental management accounting assists in the decisions that have an impact on the environment. The reason for the growing prominence of environmental accounting is the fact that the environmental costs comprise of a substantial amount, more than the firm can estimate. It helps in the better management of the environmental costs, formulation of business strategies, determining accurate costs of goods and services, minimization of environmental costs etc. The implementation of the environmental accounting rules benefits the organizations in the form of lower costs through economic use of resources; improved design of goods and processes. The minimization of the environmental impact gives an advantage over the competitors; and selection of opportunities that help in reducing the operating costs (Global Development Research Center, n.d.). Therefore environmental management accounting serves the dual purpose of improving and managing the environmental as well as the financial performance of an organization. In contrast the conventional management accounting

Greeks and Extra Marital Sex Essay Example | Topics and Well Written Essays - 1500 words

Greeks and Extra Marital Sex - Essay Example Many societies believe that sexual pleasures are only realized in a committed relationship, which is governed by love. In spite of customs, sexual characteristics, age and marital status, a devoted affiliation usually include a sexual devotion. Such commitments are necessary for preserving the promise of love. Hence, violation of the promise of love may lead to legal issues, and it is an unethical act. Thesis: Although, extramarital sex is regarded as morally and legally wrong; it is also discouraged in many societies because it contributes to diverse consequences such as divorce, punishment and even death. The moral question has been a significant issue since history and immorality have never been accepted in the society basing on legal and religious grounds; thus, the thesis is worth plausible. This is because people knew to differentiate right from wrong; thus, extramarital issues have never been accepted. The spirits and God authorized the proper way of action and penalty for goi ng against the law. In other words, morality and religious issues have been virtually identical, but atheistic moral issues appeared in the late age of civilization. Aesthetic dogmatic have always charged the moral actions of human being. However, sexual behaviors whether adultery, infidelity or other immoral acts have never been illegally nor morally accepted in the society. ... The issue of moral convictions dates back to the historical background especially the ancient time of Christianity and Judaism. The sexual morality has been influenced by varied religious convictions, and the influence was quite often indirect, restrained or concealed (Carmichael123). Therefore, it is significant to cast the cursory glance of some western religion and focus of the biblical teachings about humanity sexual behaviors and moral principles in the society. For instance, the early Greeks had affirmative stance towards sexuality, but this has profoundly changed due to western influences. They viewed sex as basic life vigor, and sexual urges were acknowledged as principally good. They also understood that all their gods virtually directed them to enthusiastic and diverse sex lives. The research carried out revealed that sexual conduct is a highly regulated activity, and it has emerged as a complex web of legal regulation of impressionistic (Chamallas 777). The sex decree func tions as a value, and it underlies the vision of proper sexual behaviors. The legal regulations concerning sex arise at different occasions, but in history, sex law was identified the concern of bold belief. The strict laws and discouragement of sex basing on strong moral foundations in the Greece society enabled the society to reduce incidences of STIs and other varied consequences. For instance, the empirical study carried out indicated that Greece continues to be the remaining nation among the European countries with the least rate of STIs such as Aids. This is because cases of immoral behaviors have been highly discouraged since history up to the present. The inherent philosophical considerations and the rationality are the issue of consideration in the extra-marital sex

Stages and Spheres of Discipleship Research Paper

Stages and Spheres of Discipleship - Research Paper Example The spiritually dead do not consider Christ. They do not consider Christ as their lord and savior. They are the unsaved and not born again people in the society. The spiritually dead do not believe in god. To them, the bible is just a bunch of myths. Christians are intolerant and homophobic people to God and they need to develop patience. Religion is a crutch for the weak individuals and such take chances in god.1 They do not differentiate between the right and wrong and they consider what might be right for one person to be right for another person. For them, the truth is just relevant for the one who perceives it. The spiritually dead do not consider the existence of hell and consider many ways a person can get to God. They consider themselves good individuals, and when they die, everything will be okay. Ephesians two 1-5 â€Å"God due to his great love for us and his rich mercy make us alive makes us alive with Christ even when we are dead in transgression."2 These individuals just know the Christ as their lord and savior. They are in the stage to learn the way God taught his disciples. They are described as infant babies filled with many questions and with many curiosities. The spiritual infants consider it necessary to go to church regularly to learn more about Christ. The spiritual infants need to pray and read the bible regularly. They consider it not necessary to need anyone else in their lives apart from themselves and Jesus. However, the infants are faced with dilemmas; they consider Jesus to be the solution of their problem. They will tell you that they were saved recently, but they still have problems in their lives. Peter 2:2-3 peter a servant and apostle of God says, â€Å"To those who have received Gods righteous and Jesus Christ as their savior, Grace and peace be abundant upon them through the knowledge of Jesus Christ and God. The divine power of God will give them everything they need.†3 The spiritual children

The Most Important Signer of the US Constitution Essay

The Most Important Signer of the US Constitution - Essay Example Important Signers of the Constitution A lot of people signed the Constitution from Delaware. They include Thomas McKean who was born in 1734, Caesar Rodney who was born in 1728 and George Read who was born in 1733. George Read is regarded as one of the most important signers of the Constitution. His largest accomplishment was not necessary that he signed both the Constitution and Declaration of independence but that he signed the U.S Constitution twice. George Washington presided over the convention while James Madison, also present, wrote the document that formed the model of the Constitution. The 55 convention delegates’ shaped an enduring document that has withstood the test of time (Boardman, 104). The term framer is sometimes used to specify people who helped craft the Constitution. The Founding Fathers made a significant impact in the fight for independence. Many of the founding fathers were at the Constitution Convention where the Constitution was hammered out and ratif ied.

Promote communication in health and social care Essay Example for Free

Promote communication in health and social care Essay Communication is one of the most essential tools we have to help us interact with other people around us. We use it constantly in our everyday lives whether it be at work, with friends or at home with our families. The way we communicate reflects our personality and the way we come across to other people and build trust and relationships. Reasons why people communicate. †¢ Building relationships with the people around us †¢ Maintaining relationships †¢ Sharing ideas and thoughts †¢ Expressing feelings and needs †¢ Gaining reassurance and acknowledgement †¢ Gaining information and sharing information When we have a new child starting we have an â€Å"all about me† form that we ask the parent to complete. We do this to get to know the child and his/her likes and dislikes so that they can feel comfortable and to start building a relationship with that child and parent. We sit down with the parent to have a talk about this and also ask them if they would like a drink so that they feel welcome and at ease. As well as building relationships with the children and parents it is important to build relationships with the people we work with. Asking them questions about themselves and telling them about yourself. When a parent brings a child in in the morning we greet them and the child saying good morning and smiling. Likewise when the child is collected saying goodbye and taking time talking to the parent about the childs day. This helps maintain the relationship with the parent and child. Letting them know that we have time to speak to them and to listen. Likewise talking to the other staff members about their interests or if they had a nice weekend. Greeting them when coming in also helps to maintain a good working relationship with them. It is important for adults as well as children that they feel listened to and feel like their ideas and thoughts are important. Listening to a child will not only help build a relationship with that child but also make the child feel valued and build their self esteem. Also listening to what they have to say and respecting their feelings is an important way to meet the childs needs. When we meet new people one of the first things we do is to share and gain information with that person. This will help to establish a relationship with that person. This is also a vital part of working well with other people. When starting at the setting I first of all did this with the other staff by telling them about me and learning about them and also learning about the setting and how they do things there. With the children I asked them questions like their names and about the important people in their lives. This has helped me build relationships not just with the children at the setting but also t he people that I work with. Especially with the children that I work with I am finding it very important in building a relationship with them to reassure them and acknowledge their achievements. Praising them and showing them with my body language that they are important. They respond well to doing â€Å"high 5s† and keeping eye contact while they are talking to me. Likewise using some of the same tools with parents and colleagues help to acknowledge and reassure them that I am interested in what they have to say. It is very important to be able to communicate well with the people you work with. Not just to be happy yourself and to feel valued but also to provide the best care for the children in your setting. It is also important to be able to communicate well with the parents so that they feel that their needs are being met. They need to be able to leave the children in your care knowing that they will be safe and happy. When communicating with people we dont just use our voices but also non-verbal communication like eye contact, touch and body language. The non-verbal communication can be more powerful than the verbal. At the setting where I work we have a little boy who isnt using many words yet to communicate. He will come and take your hand and show you what it is he  wants. Using the information we have in the â€Å"all about me† form we know that he likes animals and to watch The Jungle Book on DVD. So we get the animals out and talk to him about them, asking him what noises those animals make and what they like to eat. Non-verbal communication is also very powerful when speaking to adults. Looking a the person you are speaking to can give you an idea of how they are feeling and also how they are reacting to what you are saying. The way you say some thing might be understood one way face to face with a person but will be understood differently over the telephone. Likewise listening skills are a very good tool to communicate well with the people around you. If you dont take time to listen to the children you will not be able to build a relationship with them. Also being able to learn from the other staff at your setting is important and would be impossible without good listening skills. If the communication isnt clear it can lead to misunderstanding. This can happen easily especially with children at a young age. It can also be a factor that a child, parent or colleague come from a different culture. As I am from Denmark but have lived in the UK for more than 13 years now I have felt this first hand. When I first moved here I worked with a man who used to speak to me as if I didnt understand. That made me feel like I was inadequate whereas he probably thought he was helping me. On the other hand I have had people using long and difficult words that I didnt understand and therefore making me feel less able to communicate with them. Feeling comfortable enough to ask questions and to say to the people you work with that you didnt understand is very important so that misunderstandings dont happen. Using different skills of communication would also be very helpful to make sure that the person you are talking to will be able to understand you. You might have to simplify y our language or use visual aids like pictures or in some cases have to use outside help like a translator or a speech therapist. To me good communication is all about building relationships with the people around you. This is even more important in the area of work that we do with children. Not only building the relationship with the parents, children and  colleagues but to teach the children from a young age to also communicate well and to help them to learn to build their own relationships with us, the children around them and everywhere else that they meet other people. Book used for information: Level 3 Diploma Children Young peoples Workforce Early Learning and Childcare by Penny Tassoni, Kate Beith, Kath Bulman and Sue Griffin

Favorite Teacher Essay Example for Free

Favorite Teacher Essay Choosing a favorite teacher is fairly difficult when one puts into account all the types of teachers they have known, all of them are important. Teachers are the second most important people in our lives, right after our parents. Teachers are persuasive and have the power to build a child up from an immature student to become a responsible adult; or they can completely and utterly crush a students hopes and dreams. As an identical twin my mother has always pulled a few strings to have my sister and me in the same classes throughout elementary school. We were absolutely inseparable. Transitioning from elementary to middle school was a milestone for me. Every class I was placed in was different from my sister’s. I was friendless, and at times I felt hopeless scrambling to find friends; I was overwhelmed by the turmoil of the middle school system. At my locker I forgot a key ingredient, the combination; completely overloaded with homework, tests and loneliness, I sat at my locker and sobbed. It was there I crossed paths with one of the most important people I have ever known. The first time I met Ms. Reagan was when she gave the upcoming middle-schoolers a tour of the school the summer before my sixth grade year. She was short, thin and had an intelligent look. She seemed truly interested in me, given my mother had met her on vacation a few years back. Ms. Reagan assured my worried mother I would do perfectly fine in a new environment without my sister. However, when school began, so did my problems. Mr. Wolff was my sixth grade English teacher, as an advanced English student the first essay he assigned was rather demanding. Struck by writer’s block, I was only able to conquer five pages of the assigned six-page essay. Mr. Wolff asked for a word after class; obliging I listened to him rant about how he expected more out of me than five pages of redundancy. I left the classroom with a rigid, seemingly emotionless expression. I went to my only friend, my locker, and began to sob when I remembered I had forgotten my combination. Walking back from the teachers’ lounge, Ms. Reagan calmly asked me to explain my dilemma; she offered support and assured me I would do well, promising me I would make friends. I left school that day consoled and filled with a newborn hope that I would progress through the sixth grade successfully; after all it was just the third day of school. After a few weeks of attending middle school, I began to gain friends; they were not comparable to my twin, but they were accepting. I listened to what Ms. Reagan had mentioned to me and I was able to gain more and more friends I today refer to as my closest friends. With Ms. Reagan’s advice I was able to conquer my fears of having no friends, and I finally was able to master the dreaded locker combination. Ms. Reagan is the embodiment of a leader and sets an endless example of respect and commitment for her current students and students of years prior. She treats everyone with kindness and compassion and is always willing to give advice to anyone. Most importantly, she believes in herself as a teacher and, in turn, her students learn to believe in themselves. I have been able to acquire this knowledge of Ms. Reagan through various lunch visits when I was unable to find a table. We spoke of our families, futures, travels and opinions. Although it has been years since I sat in her classroom, Ms. Reagan continues to affect me in a very meaningful way. In the summer we often go to the same part of Newport during the same time; she often walks past my house, and even on the hottest of days, she will always stop at the end of my driveway just to chat. In return, when I get the chance, I like to stop by to visit her after school lets out just to catch up for a little bit and fill her in on the latest news in my life. However, although our conversations may be few and far between, they always make for memorable moments. As I continue to get older, I cannot help looking back and reminiscing about my days as an elementary student. I feel lucky for having such an unforgettable childhood and thankful for the people that were apart of it. Ms. Reagan has always been more than an educator to me, and I am so blessed to have her as a part of my life.

History and Development of Banks in India

History and Development of Banks in India INTRODUCTION: The banking industry in India seems to be unaffected from the global financial crises which started from U.S in the last quarter of 2008. Despite the fallout and nationalization of banks across developed economies, banks in India seems to be on the strong fundamental base and seems to be well insulated from the financial turbulence emerging from the western economies. The Indian banking industry is well placed as compare to their banking industries western counterparts which are depending upon government bailout and stimulus packages. The strong economic growth in the past, low defaulter ratio, absence of complex financial products, regular intervention by central bank, proactive adjustment of monetary policy and so called close banking culture has favored the banking industry in India in recent global financial turmoil. Although there will no impact on the Indian banking system similar to that in west but the banks in India will adopt for more of defensive approach in credit disburs al in coming period. In order to safe guard their interest, banks will follow stringent norms for credit disbursal. There will be more focus on analyzing borrower financial health . A nation with 1 billion plus, India is the fastest growing country in terms of population and soon to overtake China as worlds largest populated country. The discerning impact on the over-stretched limited resources explains why India always tends to be deficient in infrastructure and opportunity. The largest economy of the world often frustrated researchers, as there was no single predictable pattern of the market; the multiplicity of government regulations and widespread government ownership had always kept investors away from exploring the vast Indian market. However, with India being liberalised today, banking intermediation has been playing a crucial role in economic development through its credit channel. Foreign banks have entered the soil but that has not yet posed a threat to the vast network of public sector banks that still conduct 92% of banking business in India. Banking in India has undergone a major revamp. It has come a long way since its creation which dates back to the British era. The present banking systems has come into place after many transformations from the Older systems. Against this background the present chapter deals with the evolution of the Indian Banking systems, the various reforms that has been made to make banks more effective, the role of private and foreign sector banks and last the challenges the Indian banks faces in the New Millennium . The banking system is central to a nations economy. Banks are special as they not only accept and deploy large amounts of uncollateralised public funds in a fiduciary capacity, but also leverage such funds through credit creation. In India, prior to nationalisation, banking was restricted mainly to the urban areas and neglected in the rural and semi-urban areas. Large industries and big business houses enjoyed major portion of the credit facilities. Agriculture, small-scale industries and exports did not receive the deserved attention. Therefore, inspired by a larger social purpose, 14 major banks were nationalised in 1969 and six more in 1980. Since then the banking system in India has played a pivotal role in the Indian economy, acting as an instrument of social and economic change. The rationale behind bank nationalisation has been succinctly put forth by eminent bankers: Many bank failures and crises over two centuries, and the damage they did under laissez faire conditions; the needs of planned growth and equitable distribution of credit, which in privately owned banks was concentrated mainly on the controlling industrial houses and influential borrowers; the needs of growing small scale industry and farming regarding finance, equipment and inputs; from all these there emerged an inexorable demand for banking legislation, some government control and a central banking authority, adding up, in the final analysis, to social control and nationalisation (Tandon, 1989). Post nationalisation, the Indian banking system registered tremendous growth in volume. Despite the undeniable and multifold gains of bank nationalization, it may be noted that the important financial institutions were all state owned and were subject to central direction and control. Banks enjoyed little autonomy as both lending and deposit rates were controlled until the end of the 1980s. Although nationalisation of banks helped in the spread of banking to the rural and hitherto uncovered areas, the monopoly granted to the public sector and lack of competition led to overall inefficiency and low productivity. By 1991, the countrys financial system was saddled with an inefficient and financially unsound banking sector. Some of the reasons for this were (i) high reserve requirements, (ii) administered interest rates, (iii) directed credit and (iv) lack of competition (v) political interference and corruption. As recommended by the Narasimham Committee Report (1991) several reform mea sures were introduced which included reduction of reserve requirements, de-regulation of interest rates, introduction of prudential norms, strengthening of bank supervision and improving the competitiveness of the system, particularly by allowing entry of private sector banks. With a view to adopting the Basel Committee (1988) framework on capital adequacy norms, the Reserve Bank introduced a risk-weighted asset ratio system for banks in India as a capital adequacy measure in 1992. Banks were asked to maintain risk-weighted capital adequacy ratio initially at the lower level of 4 per cent, which was gradually increased to 9 per cent. Banks were also directed to identify problem loans on their balance sheets and make provisions for bad loans and bring down the burgeoning problem of non-performing assets. The period 1992-97 laid the foundations for reform in the banking system (Rangarajan, 1998). The second Narasimham Committee Report (1998) focussed on issues like strengthening of th e banking system, upgrading of technology and human resource development. The report laid emphasis on two aspects of banking regulation, viz., capital adequacy and asset classification and resolution of NPA-related problems. Commercial banks in India are expected to start implementing Basel II norms with effect from March 31, 2007. They are expected to adopt the standardised approach for credit risk and the basic indicator approach for operational risk initially. After adequate skills are developed, both at the banks and at the supervisory levels, some banks may be allowed to migrate to the internal rating based (IRB) approach (Reddy 2005). At present, banks in India are venturing into non-traditional areas and generating income through diversified activities other than the core banking activities. Strategic mergers and acquisitions are being explored and implemented. With this, the banking sector is currently on the threshold of an exciting phase. Against this backdrop, this paper endeavours to study the important banking indicators for the last 25-year period from 1981 to 2005. These indicators have been broadly grouped into different categories, viz., (i) number of banks and offices (ii) deposits and credit (iii) investments (iv) capital to risk-weighted assets ratio (CRAR) (v) non performing assets (NPAs) (vi) Income composition (vii) Expenditure composition (viii) return on assets (ROAs) and (ix) some select ratios. Accordingly, the paper discusses these banking indicators in nine sections in the same order as listed above. The paper concludes in section X by drawing important inferences from the trends of these di fferent banking parameters. The number of offices of all scheduled commercial banks almost doubledfrom 29,677 in 1980 to 55,537 in 2005. This rapid increase in the number of bank offices is observed in the case of all the bank groups. However, the number of banks in the case of foreign bank group and domestic private sector bank group decreased from 42 in 2000 to 31 in 2005 and from 33 in 2000 to 29 in 2005, respectively. This fall in the number of banks is reflective of the consolidation process and, in particular, the mergers and acquisitions that are the order of the banking system at present (Table 1). BANKING IN THE OLDER DAYS Banking is believed to be a part of Indian society from as early as Vedic age; transition from mere money lending to banking must have happened before Manu, the great Hindu jurist, who had devoted a large section of his work to deposits and advances and also formulated rules for calculating interest on both 1. During the Mogul period indigenous bankers (rich individuals or families) helped foreign trades and commerce by lending money to the business. It was during the East Indian period when agency houses started managing the banking business. The first Joint Stock bank India saw came in 1786 named the General Bank of India followed by the Bank of Hindustan and the Bengal Bank. Only the Bank of Hindustan continued to be in the show until 1906 while the other two disappeared in the meantime. East India Company established three banks in first half of 19th century: the Bank of Bengal in 1809, the Bank of Bombay in 1840, and the Bank of Madras in 1843. Eventually these three banks (which used to be referred to as Presidency Banks) were made independent units and they really did well for almost a century. In 1920, these three were amalgamated and a new Imperial Bank of India was established in 1921. Reserve Bank of India Act was passed in 1934 and finally in 1935, the Central Bank was created and christened as Reserve Bank of India. Imperial Bank was undertaken as State Bank of India after passing the State Bank of India Act in 1955. During the last phase of freedom fighting (Swadeshi Movement) few banks with purely Indian man agement were established like Punjab National bank (PNB), Bank of India (BoI) Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd, etc.July 19, 1969 was an important day in the history of Indian banking industry. Fourteen major banks of the country were nationalised and on April 15, 1980 six more commercial private banks were taken over by the Indian government. In the wake of liberalisation that started in the last decade a few foreign banks entered the foray of commercial banks. To date there are around 40 banks of foreign origin that are  operating in the market, like ABN AMRO Bank, ANZ Grindlays Bank, American Express Bank, HSBC Bank, Barclays Bank and Citibank groups to name a few major of them. HISTORY OF INDIAN BANKS: We can identify three distinct phases in the history of Indian Banking. Early phase from 1786 to 1969 Nationalisation of Banks and up to 1991 prior to banking sector Reforms New phase of Indian Banking with the advent of Financial Banking Sector Reforms after 1991. The first phase is from 1786 to 1969, the early phase up to the nationalisation of the fourteen largest of Indian scheduled banks. It was also the traditional or conservative phase of Indian Banking. The advent of banking system of India started with the establishment of the first joint stock bank, The General Bank of India in the year 1786. After this first bank, Bank of Hindustan and Bengal Bank came to existence. In the mid of 19th century, East India Company established three banks The Bank of Bengal in 1809, The Bank of Bombay in 1840, and bank of Madras in 1843. These banks were independent units and called Presidency banks. These three banks were amalgamated in 1920 and a new bank, Imperial Bank of India was established. All these institutions started as private shareholders banks and the shareholders were mostly Europeans. The Allahabad Bank was established in 1865. The next bank to be set up was the Punjab National Bank Ltd., which was established with its headquarters at La hore in 1894 for the first time exclusively by Indians. Most of the Indian commercial banks, however, owe their origin to the 20th century. Bank of India, Central Bank of India, Bank of Baroda, the Canara Bank, the Indian Bank, and the Bank of Mysore were established between 1906 and 1913. The last major commercial bank to be set up in this phase was the United Commercial Bank in 1943. Earlier the establishment of Reserve Bank of India in 1935 as the central bank of the country was an important step in the development of commercial banking in India. The history of joint stock banking in this first phase was characterised by slow growth and periodic failures. There were as many as one thousand one hundred banks, mostly small banks, failed during the period from 1913 to 1948. The Government of India concerned by the frequent bank failures in the country causing miseries to innumerable small depositors and others enacted The Banking Companies Act, 1949. The title of the Act was changed as Banking Regulation Act 1949, as per amending Act of 1965 (Act No.23 of 1965). The Act is the first regulatory step undertaken by the Government to streamline the functioning and activities of commercial banks in India. Reserve Bank of India as the Central Banking Authority of the country was vested with extensive powers for banking supervision. Salient features of the Act are discussed in a separate page/article At the time of Independence of the country in 1947, the banking sector in India was relatively small and extremely weak. The banks were largely confined to urban areas, extending loans primarily to trading sector dealing with agricultural produce. There were a large number of commercial banks, but banking services were not available at rural and semi-urban areas. Such services were not extended to different sectors of the economy like agriculture, small industries, professionals and self-employed entrepreneurs, artisans, retail traders etc. DRAW BACK OF INDIAN BANKING SYSTEM BEFORE NATIONALISATION Commercial banks, as they were privately owned, on regional or sectarian basis resulted in development of banking on ethnic and provincial basis with parochial outlook. These Institutions did not play their due role in the planned development of the country. Deposit mobilisation was slow. Public had less confidence in the banks on account of frequent bank failures. The savings bank facility provided by the Postal department was viewed a comparatively safer field of investment of savings by the public. Even the deficient savings thus mobilised by commercial banks were not channeled for the development of the economy of the country. Funds were largely given to traders, who hoarded agricultural produce after harvest, creating an artificial scarcity, to make a good fortune in selling them at a later period, when prices were soaring. The Reserve Bank of India had to step in at these occasions to introduce selective credit controls on several commodities to remedy this situation. Such cont rols were imposed on advances against Rice, Paddy, Wheat, Other foodgrains (like jowar, millets, ragi etc.) pulses, oilseeds etc. When the country attained independence Indian Banking was exclusively in the private sector. In addition to the Imperial Bank, there were five big banks each holding public deposits aggregating Rs.100 Crores and more, viz. the Central Bank of India Ltd., the Punjab National Bank Ltd., the Bank of India Ltd., the Bank of Baroda Ltd. and the United Commercial Bank Ltd. Rest of the banks were exclusively regional in character holding deposits of less than fifty Crores. Government first implemented the exercise of nationalisation of a significant part of the Indian Banking system in the year 1955, when Imperial Bank of India was Nationalised in that year for the stated objective of extension of banking facilities on a large scale, more particularly in the rural and semi-urban areas, and for diverse other public purposes to form State Bank of India. SBI was to act as the principal agent of the RBI and handle banking transactions of the Union State Governments throughout India. The step w as in fact in furtherance of the objectives of supporting a powerful rural credit cooperative movement in India and as recommended by the The All-India Rural Credit Survey Committee Report, 1954. State Bank of India was obliged to open an accepted number of branches within five years in unbanked centres. Government subsidised the bank for opening unremunerative branches in non-urban centres. The seven banks now forming subsidiaries of SBI were nationalised in the year 1960. This brought one-third of the banking segment under the direct control of the Government of India. But the major process of nationalisation was carried out on 19th July 1969, when the then Prime Minister of India, Mrs.Indira Gandhi announced the nationalisation of fourteen major commercial banks in the country. One more phase of nationalisation was carried out in the year 1980, when seven more banks were nationalised. This brought 80% of the banking segment in India under Government ownership. The country entered the second phase, i.e. the phase of Nationalised Banking with emphasis on Social Banking in 1969/70. Chronology of Salient steps by the Government after Independence to Regulate Banking Institutions in the Country 1949: Enactment of Banking Regulation Act. 1955 (Phase I): Nationalisation of State Bank of India 1959 (Phase II): Nationalisation of SBI subsidiaries 1961: Insurance cover extended to deposits 1969 (Phase III): Nationalisation of 14 major banks 1971: Creation of credit guarantee corporation 1975: Creation of regional rural banks 1980 (Phase IV): Nationalisation of seven banks with deposits over 200 crores. Shortcomings in the Functioning of Nationalised Banking Institutions However Nationalised banks in their enthusiasm for development banking, looking exclusively to branch opening, deposit accretion and social banking, neglected prudential norms, profitability criteria, risk-management and building adequate capital as a buffer to counter-balance the ever expanding risk-inherent assets held by them. They failed to recognise the emerging non-performing assets and to build adequate provisions to neutralise the adverse effects of such assets. Basking in the sunshine of Government ownership that gave to the public implicit faith and confidence about the sustainability of Government-owned institutions, they failed to collect before hand whatever is needed for the rainy day. And surfeit blindly indulged is sure to bring the sick hour. In the early Nineties after two decades of lop-sided policies, these banks paid heavily for their misdirected performance in place of pragmatic and balanced policies. The RBI/Government of India has to step in at the crisis-hour to implement remedial steps. Reforms in the financial and banking sectors and liberal re capitalisation of the ailing and weakened public sector banks followed. However it is relevant to mention here that the advent of banking sector reforms brought the era of modern banking of global standards in the history of Indian banking. The emphasis shifted to efficient, and prudential banking linked to better customer care and customer service. The old ideology of social banking was not abandoned, but the responsibility for development banking is blended with the paramount need for complying with norms of prudency and efficiency. Composition of Indian Banking System The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions 2. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look into their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The banking system has three tiers. These are the scheduled commercial banks; the Regional rural banks which operate in rural areas not covered by the scheduled banks; And the cooperative and special purpose rural banks. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc., unlike commercial banks these co-operative banks do not lend on the basis of a prime lending rate. They also have various tax sops because of their holding pattern and lending structure and hence have lower overheads. This enables them to give a marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing loans, truck finance etc. In order to keep pace with their public sector and private counterparts, the co-operative banks too have invested heavily in information technology to offer high-end computerized banking services to its clients. Given below is the total list of banks operating in India. SCHEDULED AND NON SCHEDULED BANKS There are approximately Eighty scheduled commercial banks, Indian and foreign; almost Two Hundred regional rural banks; more than Three Hundred Fifty central cooperative banks, Twenty land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.India had a fairly well developed commercial banking system in existence at the time of independence in 1947. The Reserve Bank of India (RBI) was established in 1935. While the RBI became a state owned institution from January 1, 1949, the Banking Regulation Act was enacted in 1949 providing a framework for regulation and supervision of commercial banking activity. The first step towards the nationalisation of commercial banks was the result of a report (under the aegis of RBI) by the Committee of Direction of All India Rural Credit Survey (1951) which till today is the locus classicus on the subject. The Committee recommended one strong integrated state partnered commercial banking institution to stimulate banking development in general and rural credit in particular. Thus, the Imperial Bank was taken over by the Government and renamed as the State Bank of India (SBI) on July 1, 1955 with the RBI acquiring overriding substantial holding of shares. A number of erstwhile banks owned by princely states were made subsidiaries of SBI in 1959. Thus, the beginning of the Plan era also saw the emergence of public ownership of one of the most prominent of the commercial banks. The All-India Rural Credit Survey Committee Report, 1954 recommended an integrated approach to cooperative credit and emphasised the need for viable credit cooperative societies by expanding their area of operation, encouraging rural savings and diversifying business. The Committee also recommended for Government participation in the share capital of the cooperatives. The report subsequently paved the way for the present structure and composition of the Cooperative Banks in the country There was a feeling that though the Indian banking system had made considerable progress in the 50s and 60s, it established close links between commercial and industry houses, resulting in cornering of bank credit by these segments to the exclusion of agriculture and small industries. To meet these concerns, in 1967, the Government introduced the concept of social control in the banking industry. The scheme of social control was aimed at bringing some changes in the management and distribution of credit by the commercial banks. The close link between big business houses and big banks was intended to be snapped or at least made ineffective by the reconstitution of the Board of Directors to the effect that 51 per cent of the directors were to have special knowledge or practical experience. Appointment of whole-time Chairman with special knowledge and practical experience of working of commercial banks or financial or economic or business administration was intended to professionalise t he top management. Imposition of restrictions on loans to be granted to the directors concerns was another step towards avoiding undesirable flow of credit to the units in which the directors were interested. The scheme also provided for the take-over of banks under certain circumstances. Political compulsion then partially attributed to inadequacies of the social control, led to the Government of India nationalising, in 1969,fourteen major scheduled commercial banks which had deposits above a cut-off size. The objective was to serve better the needs of development of the economy in conformity with national priorities and objectives. In a somewhat repeat of the same experience, eleven years after nationalisation, the Government announced the nationalisation of seven more scheduled commercial banks above the cut-off size. The second round of nationalisation gave an impression that if a private sector bank grew to the cut-off size it would be under the threat of nationalisation. From the fifties a number of exclusively state-owned development financial institutions (DFIs) were also set up both at the national and state level, with a lone exception of Industrial Credit and Investment Corporation (ICICI) which had a minority private share holding. The mutual fund activity was also a virtual monopoly of Government owned institution, viz., the Unit Trust of India. Refinance institutions in agriculture and industry sectors were also developed, similar in nature to the DFIs. Insurance, both Life and General, also became state monopolies. REFORM MEASURES The major challenge of the reform has been to introduce elements of market incentive as a dominant factor gradually replacing the administratively coordinated planned actions for development. Such a paradigm shift has several dimensions, the corporate governance being one of the important elements. The evolution of corporate governance in banks, particularly, in PSBs, thus reflects changes in monetary policy, regulatory environment, and structural transformations and to some extent, on the character of the self-regulatory organizations functioning in the financial sector. Policy Environment During the reform period, the policy environment enhanced competition and provided greater opportunity for exercise of what may be called genuine corporate element in each bank to replace the elements of coordinated actions of all entities as a joint family to fulfill predetermined Plan priorities. Greater competition has been infused in the banking system by permitting entry of private sector banks (Nine licences since 1993), and liberal licensing of more branches by foreign banks and the entry of new foreign banks. With the development of a multi-institutional structure in the financial sector, emphasis is on efficiency through competition irrespective of ownership. Since non-bank intermediation has increased, banks have had to improve efficiency to ensure survival. REGULATORY ENVIRONMENT Prudential regulation and supervision have formed a critical component of the financial sector reform programme since its inception, and India has endeavored to international prudential norms and practices. These norms have been progressively tightened over the years, particularly against the backdrop of the Asian crisis. Bank exposures to sensitive sectors such as equity and real estate have been curtailed. The Banking Regulation Act 1949 prevents connected lending (i.e. lending by banks to directors or companies in which Directors are interested). Periodical inspection of banks has been the main instrument of supervision, though recently there has been a move toward supplementary on-site inspections with off-site surveillance. The system of Annual Financial Inspection was introduced in 1992, in place of the earlier system of Annual Financial Review/Financial Inspections. The inspection objectives and procedures, have been redefined to evaluate the banks safety and soundness; to appraise the quality of the Board and management; to ensure compliance with banking laws regulation; to provide an appraisal of soundness of the banks assets; to analyse the financial factors which determine banks solvency and to identify areas where corrective action is needed to strengthen the institution and improve its performance. Inspection based upon the new guidelines have started since 1997. SELF REGULATORY ORGANIZATIONS India has had the distinction of experimenting with Self Regulatory Organisations (SROs) in the financial system since the pre-independence days. At present, there are four SROs in the financial system Indian Banks Association (IBA), Foreign Exchange Dealers Association of India (FEDAI), Primary Dealers Association of India (PDAI) and Fixed Income Money Market Dealers Association of India (FIMMDAI). INDIAN BANKS ASSOCIATION The IBA established in 1946 as a voluntary association of banks, strove towards strengthening the banking industry through consensus and co-ordination. Since nationalisation of banks, PSBs tended to dominate IBA and developed close links with Government and RBI. Often, the reactive and consensus and coordinated approach bordered on cartelisation. To illustrate, IBA had worked out a schedule of benchmark service charges for the services rendered by member banks, which were not mandatory in nature, but were being adopted by all banks. The practice of fixing rates for services of banks was consistent with a regime of administered interest rates but not consistent with the principle of competition. Hence, the IBA was directed by the RBI to desist from working out a schedule of benchmark service charges for the services rendered by member banks. Responding to the imperatives caused by the changing scenario in the reform era, the IBA has, over the years, refocused its vision, redefined its role, and modified its operational modalities. FOREIGN EXCHANGE DEALERS ASSOCIATION OF INDIA (FEDAI) In the area of foreign exchange, FEDAI was established in 1958, and banks were required to abide by terms and conditions prescribed by FEDAI for transacting foreign exchange business. In the light of reforms, FEDAI has refocused its role by giving up fixing of rates, but plays a multifarious role covering training of banks personnel, accounting standards, evolving risk measurement models like the VaR History and Development of Banks in India History and Development of Banks in India INTRODUCTION: The banking industry in India seems to be unaffected from the global financial crises which started from U.S in the last quarter of 2008. Despite the fallout and nationalization of banks across developed economies, banks in India seems to be on the strong fundamental base and seems to be well insulated from the financial turbulence emerging from the western economies. The Indian banking industry is well placed as compare to their banking industries western counterparts which are depending upon government bailout and stimulus packages. The strong economic growth in the past, low defaulter ratio, absence of complex financial products, regular intervention by central bank, proactive adjustment of monetary policy and so called close banking culture has favored the banking industry in India in recent global financial turmoil. Although there will no impact on the Indian banking system similar to that in west but the banks in India will adopt for more of defensive approach in credit disburs al in coming period. In order to safe guard their interest, banks will follow stringent norms for credit disbursal. There will be more focus on analyzing borrower financial health . A nation with 1 billion plus, India is the fastest growing country in terms of population and soon to overtake China as worlds largest populated country. The discerning impact on the over-stretched limited resources explains why India always tends to be deficient in infrastructure and opportunity. The largest economy of the world often frustrated researchers, as there was no single predictable pattern of the market; the multiplicity of government regulations and widespread government ownership had always kept investors away from exploring the vast Indian market. However, with India being liberalised today, banking intermediation has been playing a crucial role in economic development through its credit channel. Foreign banks have entered the soil but that has not yet posed a threat to the vast network of public sector banks that still conduct 92% of banking business in India. Banking in India has undergone a major revamp. It has come a long way since its creation which dates back to the British era. The present banking systems has come into place after many transformations from the Older systems. Against this background the present chapter deals with the evolution of the Indian Banking systems, the various reforms that has been made to make banks more effective, the role of private and foreign sector banks and last the challenges the Indian banks faces in the New Millennium . The banking system is central to a nations economy. Banks are special as they not only accept and deploy large amounts of uncollateralised public funds in a fiduciary capacity, but also leverage such funds through credit creation. In India, prior to nationalisation, banking was restricted mainly to the urban areas and neglected in the rural and semi-urban areas. Large industries and big business houses enjoyed major portion of the credit facilities. Agriculture, small-scale industries and exports did not receive the deserved attention. Therefore, inspired by a larger social purpose, 14 major banks were nationalised in 1969 and six more in 1980. Since then the banking system in India has played a pivotal role in the Indian economy, acting as an instrument of social and economic change. The rationale behind bank nationalisation has been succinctly put forth by eminent bankers: Many bank failures and crises over two centuries, and the damage they did under laissez faire conditions; the needs of planned growth and equitable distribution of credit, which in privately owned banks was concentrated mainly on the controlling industrial houses and influential borrowers; the needs of growing small scale industry and farming regarding finance, equipment and inputs; from all these there emerged an inexorable demand for banking legislation, some government control and a central banking authority, adding up, in the final analysis, to social control and nationalisation (Tandon, 1989). Post nationalisation, the Indian banking system registered tremendous growth in volume. Despite the undeniable and multifold gains of bank nationalization, it may be noted that the important financial institutions were all state owned and were subject to central direction and control. Banks enjoyed little autonomy as both lending and deposit rates were controlled until the end of the 1980s. Although nationalisation of banks helped in the spread of banking to the rural and hitherto uncovered areas, the monopoly granted to the public sector and lack of competition led to overall inefficiency and low productivity. By 1991, the countrys financial system was saddled with an inefficient and financially unsound banking sector. Some of the reasons for this were (i) high reserve requirements, (ii) administered interest rates, (iii) directed credit and (iv) lack of competition (v) political interference and corruption. As recommended by the Narasimham Committee Report (1991) several reform mea sures were introduced which included reduction of reserve requirements, de-regulation of interest rates, introduction of prudential norms, strengthening of bank supervision and improving the competitiveness of the system, particularly by allowing entry of private sector banks. With a view to adopting the Basel Committee (1988) framework on capital adequacy norms, the Reserve Bank introduced a risk-weighted asset ratio system for banks in India as a capital adequacy measure in 1992. Banks were asked to maintain risk-weighted capital adequacy ratio initially at the lower level of 4 per cent, which was gradually increased to 9 per cent. Banks were also directed to identify problem loans on their balance sheets and make provisions for bad loans and bring down the burgeoning problem of non-performing assets. The period 1992-97 laid the foundations for reform in the banking system (Rangarajan, 1998). The second Narasimham Committee Report (1998) focussed on issues like strengthening of th e banking system, upgrading of technology and human resource development. The report laid emphasis on two aspects of banking regulation, viz., capital adequacy and asset classification and resolution of NPA-related problems. Commercial banks in India are expected to start implementing Basel II norms with effect from March 31, 2007. They are expected to adopt the standardised approach for credit risk and the basic indicator approach for operational risk initially. After adequate skills are developed, both at the banks and at the supervisory levels, some banks may be allowed to migrate to the internal rating based (IRB) approach (Reddy 2005). At present, banks in India are venturing into non-traditional areas and generating income through diversified activities other than the core banking activities. Strategic mergers and acquisitions are being explored and implemented. With this, the banking sector is currently on the threshold of an exciting phase. Against this backdrop, this paper endeavours to study the important banking indicators for the last 25-year period from 1981 to 2005. These indicators have been broadly grouped into different categories, viz., (i) number of banks and offices (ii) deposits and credit (iii) investments (iv) capital to risk-weighted assets ratio (CRAR) (v) non performing assets (NPAs) (vi) Income composition (vii) Expenditure composition (viii) return on assets (ROAs) and (ix) some select ratios. Accordingly, the paper discusses these banking indicators in nine sections in the same order as listed above. The paper concludes in section X by drawing important inferences from the trends of these di fferent banking parameters. The number of offices of all scheduled commercial banks almost doubledfrom 29,677 in 1980 to 55,537 in 2005. This rapid increase in the number of bank offices is observed in the case of all the bank groups. However, the number of banks in the case of foreign bank group and domestic private sector bank group decreased from 42 in 2000 to 31 in 2005 and from 33 in 2000 to 29 in 2005, respectively. This fall in the number of banks is reflective of the consolidation process and, in particular, the mergers and acquisitions that are the order of the banking system at present (Table 1). BANKING IN THE OLDER DAYS Banking is believed to be a part of Indian society from as early as Vedic age; transition from mere money lending to banking must have happened before Manu, the great Hindu jurist, who had devoted a large section of his work to deposits and advances and also formulated rules for calculating interest on both 1. During the Mogul period indigenous bankers (rich individuals or families) helped foreign trades and commerce by lending money to the business. It was during the East Indian period when agency houses started managing the banking business. The first Joint Stock bank India saw came in 1786 named the General Bank of India followed by the Bank of Hindustan and the Bengal Bank. Only the Bank of Hindustan continued to be in the show until 1906 while the other two disappeared in the meantime. East India Company established three banks in first half of 19th century: the Bank of Bengal in 1809, the Bank of Bombay in 1840, and the Bank of Madras in 1843. Eventually these three banks (which used to be referred to as Presidency Banks) were made independent units and they really did well for almost a century. In 1920, these three were amalgamated and a new Imperial Bank of India was established in 1921. Reserve Bank of India Act was passed in 1934 and finally in 1935, the Central Bank was created and christened as Reserve Bank of India. Imperial Bank was undertaken as State Bank of India after passing the State Bank of India Act in 1955. During the last phase of freedom fighting (Swadeshi Movement) few banks with purely Indian man agement were established like Punjab National bank (PNB), Bank of India (BoI) Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd, etc.July 19, 1969 was an important day in the history of Indian banking industry. Fourteen major banks of the country were nationalised and on April 15, 1980 six more commercial private banks were taken over by the Indian government. In the wake of liberalisation that started in the last decade a few foreign banks entered the foray of commercial banks. To date there are around 40 banks of foreign origin that are  operating in the market, like ABN AMRO Bank, ANZ Grindlays Bank, American Express Bank, HSBC Bank, Barclays Bank and Citibank groups to name a few major of them. HISTORY OF INDIAN BANKS: We can identify three distinct phases in the history of Indian Banking. Early phase from 1786 to 1969 Nationalisation of Banks and up to 1991 prior to banking sector Reforms New phase of Indian Banking with the advent of Financial Banking Sector Reforms after 1991. The first phase is from 1786 to 1969, the early phase up to the nationalisation of the fourteen largest of Indian scheduled banks. It was also the traditional or conservative phase of Indian Banking. The advent of banking system of India started with the establishment of the first joint stock bank, The General Bank of India in the year 1786. After this first bank, Bank of Hindustan and Bengal Bank came to existence. In the mid of 19th century, East India Company established three banks The Bank of Bengal in 1809, The Bank of Bombay in 1840, and bank of Madras in 1843. These banks were independent units and called Presidency banks. These three banks were amalgamated in 1920 and a new bank, Imperial Bank of India was established. All these institutions started as private shareholders banks and the shareholders were mostly Europeans. The Allahabad Bank was established in 1865. The next bank to be set up was the Punjab National Bank Ltd., which was established with its headquarters at La hore in 1894 for the first time exclusively by Indians. Most of the Indian commercial banks, however, owe their origin to the 20th century. Bank of India, Central Bank of India, Bank of Baroda, the Canara Bank, the Indian Bank, and the Bank of Mysore were established between 1906 and 1913. The last major commercial bank to be set up in this phase was the United Commercial Bank in 1943. Earlier the establishment of Reserve Bank of India in 1935 as the central bank of the country was an important step in the development of commercial banking in India. The history of joint stock banking in this first phase was characterised by slow growth and periodic failures. There were as many as one thousand one hundred banks, mostly small banks, failed during the period from 1913 to 1948. The Government of India concerned by the frequent bank failures in the country causing miseries to innumerable small depositors and others enacted The Banking Companies Act, 1949. The title of the Act was changed as Banking Regulation Act 1949, as per amending Act of 1965 (Act No.23 of 1965). The Act is the first regulatory step undertaken by the Government to streamline the functioning and activities of commercial banks in India. Reserve Bank of India as the Central Banking Authority of the country was vested with extensive powers for banking supervision. Salient features of the Act are discussed in a separate page/article At the time of Independence of the country in 1947, the banking sector in India was relatively small and extremely weak. The banks were largely confined to urban areas, extending loans primarily to trading sector dealing with agricultural produce. There were a large number of commercial banks, but banking services were not available at rural and semi-urban areas. Such services were not extended to different sectors of the economy like agriculture, small industries, professionals and self-employed entrepreneurs, artisans, retail traders etc. DRAW BACK OF INDIAN BANKING SYSTEM BEFORE NATIONALISATION Commercial banks, as they were privately owned, on regional or sectarian basis resulted in development of banking on ethnic and provincial basis with parochial outlook. These Institutions did not play their due role in the planned development of the country. Deposit mobilisation was slow. Public had less confidence in the banks on account of frequent bank failures. The savings bank facility provided by the Postal department was viewed a comparatively safer field of investment of savings by the public. Even the deficient savings thus mobilised by commercial banks were not channeled for the development of the economy of the country. Funds were largely given to traders, who hoarded agricultural produce after harvest, creating an artificial scarcity, to make a good fortune in selling them at a later period, when prices were soaring. The Reserve Bank of India had to step in at these occasions to introduce selective credit controls on several commodities to remedy this situation. Such cont rols were imposed on advances against Rice, Paddy, Wheat, Other foodgrains (like jowar, millets, ragi etc.) pulses, oilseeds etc. When the country attained independence Indian Banking was exclusively in the private sector. In addition to the Imperial Bank, there were five big banks each holding public deposits aggregating Rs.100 Crores and more, viz. the Central Bank of India Ltd., the Punjab National Bank Ltd., the Bank of India Ltd., the Bank of Baroda Ltd. and the United Commercial Bank Ltd. Rest of the banks were exclusively regional in character holding deposits of less than fifty Crores. Government first implemented the exercise of nationalisation of a significant part of the Indian Banking system in the year 1955, when Imperial Bank of India was Nationalised in that year for the stated objective of extension of banking facilities on a large scale, more particularly in the rural and semi-urban areas, and for diverse other public purposes to form State Bank of India. SBI was to act as the principal agent of the RBI and handle banking transactions of the Union State Governments throughout India. The step w as in fact in furtherance of the objectives of supporting a powerful rural credit cooperative movement in India and as recommended by the The All-India Rural Credit Survey Committee Report, 1954. State Bank of India was obliged to open an accepted number of branches within five years in unbanked centres. Government subsidised the bank for opening unremunerative branches in non-urban centres. The seven banks now forming subsidiaries of SBI were nationalised in the year 1960. This brought one-third of the banking segment under the direct control of the Government of India. But the major process of nationalisation was carried out on 19th July 1969, when the then Prime Minister of India, Mrs.Indira Gandhi announced the nationalisation of fourteen major commercial banks in the country. One more phase of nationalisation was carried out in the year 1980, when seven more banks were nationalised. This brought 80% of the banking segment in India under Government ownership. The country entered the second phase, i.e. the phase of Nationalised Banking with emphasis on Social Banking in 1969/70. Chronology of Salient steps by the Government after Independence to Regulate Banking Institutions in the Country 1949: Enactment of Banking Regulation Act. 1955 (Phase I): Nationalisation of State Bank of India 1959 (Phase II): Nationalisation of SBI subsidiaries 1961: Insurance cover extended to deposits 1969 (Phase III): Nationalisation of 14 major banks 1971: Creation of credit guarantee corporation 1975: Creation of regional rural banks 1980 (Phase IV): Nationalisation of seven banks with deposits over 200 crores. Shortcomings in the Functioning of Nationalised Banking Institutions However Nationalised banks in their enthusiasm for development banking, looking exclusively to branch opening, deposit accretion and social banking, neglected prudential norms, profitability criteria, risk-management and building adequate capital as a buffer to counter-balance the ever expanding risk-inherent assets held by them. They failed to recognise the emerging non-performing assets and to build adequate provisions to neutralise the adverse effects of such assets. Basking in the sunshine of Government ownership that gave to the public implicit faith and confidence about the sustainability of Government-owned institutions, they failed to collect before hand whatever is needed for the rainy day. And surfeit blindly indulged is sure to bring the sick hour. In the early Nineties after two decades of lop-sided policies, these banks paid heavily for their misdirected performance in place of pragmatic and balanced policies. The RBI/Government of India has to step in at the crisis-hour to implement remedial steps. Reforms in the financial and banking sectors and liberal re capitalisation of the ailing and weakened public sector banks followed. However it is relevant to mention here that the advent of banking sector reforms brought the era of modern banking of global standards in the history of Indian banking. The emphasis shifted to efficient, and prudential banking linked to better customer care and customer service. The old ideology of social banking was not abandoned, but the responsibility for development banking is blended with the paramount need for complying with norms of prudency and efficiency. Composition of Indian Banking System The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions 2. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look into their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The banking system has three tiers. These are the scheduled commercial banks; the Regional rural banks which operate in rural areas not covered by the scheduled banks; And the cooperative and special purpose rural banks. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc., unlike commercial banks these co-operative banks do not lend on the basis of a prime lending rate. They also have various tax sops because of their holding pattern and lending structure and hence have lower overheads. This enables them to give a marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing loans, truck finance etc. In order to keep pace with their public sector and private counterparts, the co-operative banks too have invested heavily in information technology to offer high-end computerized banking services to its clients. Given below is the total list of banks operating in India. SCHEDULED AND NON SCHEDULED BANKS There are approximately Eighty scheduled commercial banks, Indian and foreign; almost Two Hundred regional rural banks; more than Three Hundred Fifty central cooperative banks, Twenty land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.India had a fairly well developed commercial banking system in existence at the time of independence in 1947. The Reserve Bank of India (RBI) was established in 1935. While the RBI became a state owned institution from January 1, 1949, the Banking Regulation Act was enacted in 1949 providing a framework for regulation and supervision of commercial banking activity. The first step towards the nationalisation of commercial banks was the result of a report (under the aegis of RBI) by the Committee of Direction of All India Rural Credit Survey (1951) which till today is the locus classicus on the subject. The Committee recommended one strong integrated state partnered commercial banking institution to stimulate banking development in general and rural credit in particular. Thus, the Imperial Bank was taken over by the Government and renamed as the State Bank of India (SBI) on July 1, 1955 with the RBI acquiring overriding substantial holding of shares. A number of erstwhile banks owned by princely states were made subsidiaries of SBI in 1959. Thus, the beginning of the Plan era also saw the emergence of public ownership of one of the most prominent of the commercial banks. The All-India Rural Credit Survey Committee Report, 1954 recommended an integrated approach to cooperative credit and emphasised the need for viable credit cooperative societies by expanding their area of operation, encouraging rural savings and diversifying business. The Committee also recommended for Government participation in the share capital of the cooperatives. The report subsequently paved the way for the present structure and composition of the Cooperative Banks in the country There was a feeling that though the Indian banking system had made considerable progress in the 50s and 60s, it established close links between commercial and industry houses, resulting in cornering of bank credit by these segments to the exclusion of agriculture and small industries. To meet these concerns, in 1967, the Government introduced the concept of social control in the banking industry. The scheme of social control was aimed at bringing some changes in the management and distribution of credit by the commercial banks. The close link between big business houses and big banks was intended to be snapped or at least made ineffective by the reconstitution of the Board of Directors to the effect that 51 per cent of the directors were to have special knowledge or practical experience. Appointment of whole-time Chairman with special knowledge and practical experience of working of commercial banks or financial or economic or business administration was intended to professionalise t he top management. Imposition of restrictions on loans to be granted to the directors concerns was another step towards avoiding undesirable flow of credit to the units in which the directors were interested. The scheme also provided for the take-over of banks under certain circumstances. Political compulsion then partially attributed to inadequacies of the social control, led to the Government of India nationalising, in 1969,fourteen major scheduled commercial banks which had deposits above a cut-off size. The objective was to serve better the needs of development of the economy in conformity with national priorities and objectives. In a somewhat repeat of the same experience, eleven years after nationalisation, the Government announced the nationalisation of seven more scheduled commercial banks above the cut-off size. The second round of nationalisation gave an impression that if a private sector bank grew to the cut-off size it would be under the threat of nationalisation. From the fifties a number of exclusively state-owned development financial institutions (DFIs) were also set up both at the national and state level, with a lone exception of Industrial Credit and Investment Corporation (ICICI) which had a minority private share holding. The mutual fund activity was also a virtual monopoly of Government owned institution, viz., the Unit Trust of India. Refinance institutions in agriculture and industry sectors were also developed, similar in nature to the DFIs. Insurance, both Life and General, also became state monopolies. REFORM MEASURES The major challenge of the reform has been to introduce elements of market incentive as a dominant factor gradually replacing the administratively coordinated planned actions for development. Such a paradigm shift has several dimensions, the corporate governance being one of the important elements. The evolution of corporate governance in banks, particularly, in PSBs, thus reflects changes in monetary policy, regulatory environment, and structural transformations and to some extent, on the character of the self-regulatory organizations functioning in the financial sector. Policy Environment During the reform period, the policy environment enhanced competition and provided greater opportunity for exercise of what may be called genuine corporate element in each bank to replace the elements of coordinated actions of all entities as a joint family to fulfill predetermined Plan priorities. Greater competition has been infused in the banking system by permitting entry of private sector banks (Nine licences since 1993), and liberal licensing of more branches by foreign banks and the entry of new foreign banks. With the development of a multi-institutional structure in the financial sector, emphasis is on efficiency through competition irrespective of ownership. Since non-bank intermediation has increased, banks have had to improve efficiency to ensure survival. REGULATORY ENVIRONMENT Prudential regulation and supervision have formed a critical component of the financial sector reform programme since its inception, and India has endeavored to international prudential norms and practices. These norms have been progressively tightened over the years, particularly against the backdrop of the Asian crisis. Bank exposures to sensitive sectors such as equity and real estate have been curtailed. The Banking Regulation Act 1949 prevents connected lending (i.e. lending by banks to directors or companies in which Directors are interested). Periodical inspection of banks has been the main instrument of supervision, though recently there has been a move toward supplementary on-site inspections with off-site surveillance. The system of Annual Financial Inspection was introduced in 1992, in place of the earlier system of Annual Financial Review/Financial Inspections. The inspection objectives and procedures, have been redefined to evaluate the banks safety and soundness; to appraise the quality of the Board and management; to ensure compliance with banking laws regulation; to provide an appraisal of soundness of the banks assets; to analyse the financial factors which determine banks solvency and to identify areas where corrective action is needed to strengthen the institution and improve its performance. Inspection based upon the new guidelines have started since 1997. SELF REGULATORY ORGANIZATIONS India has had the distinction of experimenting with Self Regulatory Organisations (SROs) in the financial system since the pre-independence days. At present, there are four SROs in the financial system Indian Banks Association (IBA), Foreign Exchange Dealers Association of India (FEDAI), Primary Dealers Association of India (PDAI) and Fixed Income Money Market Dealers Association of India (FIMMDAI). INDIAN BANKS ASSOCIATION The IBA established in 1946 as a voluntary association of banks, strove towards strengthening the banking industry through consensus and co-ordination. Since nationalisation of banks, PSBs tended to dominate IBA and developed close links with Government and RBI. Often, the reactive and consensus and coordinated approach bordered on cartelisation. To illustrate, IBA had worked out a schedule of benchmark service charges for the services rendered by member banks, which were not mandatory in nature, but were being adopted by all banks. The practice of fixing rates for services of banks was consistent with a regime of administered interest rates but not consistent with the principle of competition. Hence, the IBA was directed by the RBI to desist from working out a schedule of benchmark service charges for the services rendered by member banks. Responding to the imperatives caused by the changing scenario in the reform era, the IBA has, over the years, refocused its vision, redefined its role, and modified its operational modalities. FOREIGN EXCHANGE DEALERS ASSOCIATION OF INDIA (FEDAI) In the area of foreign exchange, FEDAI was established in 1958, and banks were required to abide by terms and conditions prescribed by FEDAI for transacting foreign exchange business. In the light of reforms, FEDAI has refocused its role by giving up fixing of rates, but plays a multifarious role covering training of banks personnel, accounting standards, evolving risk measurement models like the VaR