. banking structure in india 10. the existing banking structure in india has evolved over several decades. it is elaborate and has been serving the credit and banking services needs of the economy. the indian banking sector has come a long way since independence, more so since the nationalisation of 14 major banks in 1969 and 6 banks in 1980. in the post financial sector national manufacturing policy 2011, department of industrial policy & promotion, ministry of commerce and industry, government of india. bis central bankers ’ speeches reforms ( 1991 ) phase, the performance and strength of the banking structure improved perceptibly. over the years, the reach of banking has widened significantly to include relatively under - banked regions, particularly in rural areas. commercial bank credit as per cent of gdp picked up steadily from 5. 8 per cent in 1951 to 56. 5 per cent by 2012. the population per bank branch came down from 64, 000 in 1969 to 12, 300 in 2012 ( rbi, 2013 ). the key feature that distinguishes the indian banking sector from the banking sectors in many other countries is the fostering of different types of institutions that catered to the divergent banking needs of various sectors of the economy. credit cooperatives were created to cater to the credit, processing and marketing needs of small and marginal farmers organised on cooperative lines. cooperatives expanded also in urban and semi - urban areas in the form of urban cooperative banks to meet the banking and credit requirements of people with smaller means. regional rural banks were created to bring together the positive features of credit cooperatives and commercial banks and specifically address credit needs of backward sections in rural areas. further, there was an experiment of establishing local area banks, albeit on a smaller scale, to bridge the gap in credit availability and strengthen the institutional credit framework in the rural and semi - urban areas. 11. while fostering a multi - tier structure, the regulatory effort has been to ensure stability and soundness by addressing weaknesses as and when they arose. the soundness of the system was evident from the way it withstood the recent financial crisis rather well, even as the banking systems in many countries across the world were adversely affected. 12. notwithstanding the growth in number of branches opened by banks, indian banking sector is yet to reach the desired level of banking penetration and inclusion as witnessed in most advanced and some of the emerging economies. it is estimated that rural india had only 7 branches per 1, 00, 000 adults in 2011 in sharp contrast with most of the developed

shelter : understanding property insurance ”. this second insurance - related publication ( the initial publication in this series was entitled in the driver ’ s seat focusing on auto insurance ) is a collaborative effort of the national financial literacy programme and the office of the financial services ombudsman. this second booklet should inform homeowners of the importance of having adequate property insurance. all the publications under the national financial literacy programme, whether dealing with business education, insurance, banking or whatever, have one thing in common and that is that they are meant to help people, in their various capacities, make more informed economic decisions and, in so doing, enhance their “ personal welfare ”. when the consumer is better informed, he benefits, economic efficiency is increased and economic policy implementation is made that much easier. that ’ s what financial education is about, ladies and gentlemen – to facilitate better economic decision - making and greater individual well - being. the central bank is overwhelmed by the enormous possibilities that this national financial literacy programme offers and invites the population to actively support and make optimum use of this most important initiative. thank you for participating in the launch of these four important booklets today.