Financial Repression to Financial Liberalisation: Reforms and Impacts Verma Diksha*, Gala Aman** *Student, Symbiosis Centre for Management Studies, Pune, India. dikshaverma1328@gmail.com **Student, Symbiosis Centre for Management Studies, Pune, India. aman.a.gala@gmail.com Online published on 13 January, 2020. Abstract The finance sector is the lifeblood of any economy and the backbone of trade and commerce. The year 1991 marks a landmark year for the Indian economy, owing to the momentous liberalisation, privatisation and globalisation policies. Financial liberalisation was undertaken to overcome financial fragility, and was characterised by the drastic reduction of government intervention and regulation from the financial sector. Convergence of prudential norms with international policies was important as the concept of a global economy gained dominance. Policies such as interest rate control, easier availability of credit and deregulation which allowed entry of private, domestic and foreign banks were implemented. Financial institutions grew and the banking sector expanded, affecting the macroeconomic volatility. This paper will analyse the effectiveness of these policies and their impact on the landscape on the Indian banking sector in the decades that followed. Top Keywords Financial Liberalisation, banking sector, privatisation, liberalisation, deregulation. Top |