Commercial Banks

Demise of Development Financial Institutions in India: Issues and Implications

The emerging economies in post colonial era faced a difficult choice of appropriate mechanism of channelizing the resources into development effort. Many of them had inherited capital starved primitive financial systems. Such systems could not be relied upon to allocate resources among competing demands in the economy. The task of institution building was too important to be left at the mercy of the market forces at the budding stage of development.