As we know if anyone crossover with the British Conquest in India, he can easily understand the situation of the Indian economy at that time. In the present economic situation, Indian government focuses on the financial reforms to get higher GDP growth. During this time Indian government take all possible action to overcome the problem which came after the Federal Bank of US, decided to stop their quantitative easing program. Under this circumstances' government of India taking herculean tasks like the merger of the SBI associates and BMB with SBI, also decision like the demonetization which nearly proved null void. Then the digital India initiative also merely going to prove as null and void. According to these decisions, my prediction is that India going to be fully privatized banking system in near to the future.as the result the image of the welfare society on world sphere going to be an end. This paper divided into four categories, first, the introduction under this category includes the situation of India in 1777s and the short note on the emergence of the formal banking. The second one is the research methodology which based on the secondary data and exploratory design. The third one is how India back in 1777s in the economy? Under this category includes the merger of five associates and BMB with SBI, future merger of the RRBs in sponsored bank, the emergence of private players in the financial sector and the proposal given by RBI deputy governor to privatize the public sector banks. The last one is conclusion and suggestion under this category proposed some suggestions for which there’s no have to be compelled to denationalize the PSUs Banks.

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DOES INDIA WANT TO BACK 1777 IN ECONOMY?
GHANSHYAM DOS*
SUDHAKAR PUSKAR**
ABSTRACT
As we know if anyone crossover with the British Conquest in India, he can easily understand the
situation of the Indian economy at that time. In the present economic situation, Indian government
focuses on the financial reforms to get higher GDP growth. During this time Indian government
take all possible action to overcome the problem which came after the Federal Bank of US, decided
to stop their quantitative easing program. Under this circumstances' government of India taking
herculean tasks like the merger of the SBI associates and BMB with SBI, also decision like the
demonetization which nearly proved null void. Then the digital India initiative also merely going
to prove as null and void. According to these decisions, my prediction is that India going to be
fully privatized banking system in near to the future.as the result the image of the welfare society
on world sphere going to be an end.
This paper divided into four categories, first, the introduction under this category includes the
situation of India in 1777s and the short note on the emergence of the formal banking. The second
one is the research methodology which based on the secondary data and exploratory design. The
third one is how India back in 1777s in the economy? Under this category includes the merger of
five associates and BMB with SBI, future merger of the RRBs in sponsored bank, the emergence
of private players in the financial sector and the proposal given by RBI deputy governor to privatize
the public sector banks. The last one is conclusion and suggestion under this category proposed
some suggestions for which there’s no have to be compelled to denationalize the PSUs Banks.
Key points: - Indian economy in 1777s, demonetization, merger of banks, privatization of PSUs, RRBs.
*Research Scholar, Department of Rural Management, School of Management Studies, Babasaheb Bhimrao Ambedkar University,
Lucknow(U.P.)
** Research Scholar, Department of Rural Management, School of Management Studies, Babasaheb Bhimrao Ambedkar University,
Lucknow (U.P.)

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INTRODUCTION
As we know that after defeating the Navab of Bengal, WARREN HEISTING became the first
governor-general of India, and then East India Company become as the supreme power in Bengal,
as results the company focuses only on their profit by the means of taxation, indigo farming, cotton
and silk export. They only wanted how to profit maximize, in this way the administration of Bengal
went through very worrisome conditions. In this way, Bengal faced a first worrisome drought of
Indian history. Approximately 1/3 of the population of Bengal died due drought and plague. After
that British expand their empire in India, by the means treaties and fighting. Then the western
banking system emerged in India, these banks are primarily private holding companies, the had
sole aim to make the profit for the British and their stakeholder in this way they were not focused
on the poor section of the society, and villages. Because the Indian villages were the profit making
factory to the British’s and also the private holding banking institution because of Indian farmers,
were soft-hearted easily believe on the person, they had no nature to cheat someone.
The Indian banking reforms start with the establishment of Reserve Bank of India by the passing
Bill by the Hilton young’s recommendation as a supreme banking system in India to regulate the
banking system. Then the nationalization of RBI in 1950 took place. Then SBI and their associates
were nationalized. Aim behind that to provide the financial services to the poor people of the
nation. In the same way, 19 more banks were nationalized. Then the regional rural banks came
into existence also aim behind provide financial assistance to the poor section of the society. There
are many developments took place since the independence for the providing the financial
assistance to farmers there more than 1000s schemes working central and state level, but still,
farmers die due extortion or pressure put by the banks or lenders. In the same way, the 8th
November 2016 government of India take a decision of demonetization in the name of economic
reform, there were more 100 farmers died in the queue of the banks.
RESEARCH METHODOLOGY
This paper is based on the secondary data, qualitative data. Explorative research design. The ideas
of this research came after the study of the conditions, news, and seminar conducted by the
government, RBI and financial ministry.
HOW INDIA BACK 1777 IN ECONOMY?
SBI and its five associates and BMB United:
Five associates and BMB ( Bhartiya Mahila Bank) merged with the SBI, the aim behind
that to make one largest bank of the country and also make the leader among top 50 banks
around the world. Two years before BMB established with the aim of the women
empowerment, but now according to government women of India become empowered, in
this way, the government decided to merge with SBI. I also support that the India wants
the largest bank with world presence. But the BMB should not be the part of this merger
because still, so many crimes against women happened in the society. According to SBI
chairman Arundhati Bhattacharya" the combined entity will enhance the productivity,
mitigate geographical risks, increase operational efficiency and drive synergies across

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multiple dimensions while ensuring increased levels of customer delight." This is a
most prominent work in the field of financial reforms but this merger make organisation
very huge in this way, there may be problem in the operation and management.
Government planned to merge the RRBs with their associates
Regional Rural Banks are established in mid 1970s with the aim of provides banking
facilities for the rural public at their native places. Reason behind that the all the
nationalized bank branches centered in the urban area, that the way the financial
assistance not reach to the rural people. The concept of RRBs came from the Bangladesh
by the Mohd Yunush model. The capital share in RRBs in India are They jointly owned
by the Government of India (50 per cent stake), the State Government concerned (15 per
cent), and sponsor banks (35 percent). Reason behind this merger with sponsored banks
are
 To bring down the fiscal deficits
 Increase cash in economy
But what about the rural people, there are so many deaths accrued due to overweight of the
loans of farmer. They are still lagged behind the financial exclusion. The sponsored bank
official, they don’t know their regional languages, in this the problem arises the same as
before 1970s. In this way the aim of RBI as well as government of India become null and
void.
Emergence of private companies in financial system in the name of digital valets
In India, there are so many debts and credit card facilitators are working. They are come
from foreign nation’s private firms, with the aim to enhance their profit not the welfare of
the Indians. In this way there so many ATMs or debit card and credit card frauds came in
front of our eyes daily these companies are- VISA, MASTER CARD etc. yes I have
accepted here some of the Indian banks have their own credit and debit card companies,
but they also sponsored or tie-up with these foreign companies. We are read or cross over
such news daily man live in Lucknow, his debit card or ATMs is used in England or Korea
for the online shopping. These companies are easily free his collar besides said that the
costumes ill handed the card. But facts is that they shared all information related to credit
history and personal information for making the profit only.The aim of establishing a
private firm with a sole aim is profit making only.
Government also seeks to make digital economy on the shoulders of private players
Indian government demonetized their high denomination currency note with new 2000 and
500 note on 8th November 2016. Reason behind that to curb the black economy, terrorism
and other illegal financial activities. Some point of time this got success but now we can
see that
 More than 50 terror attack happened in India since November

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 There huge amount of the new currency found with arrested or killed down
terrorism
 There is huge amount of new currency recovered with firms or individuals where
still the normal public failed get sufficient amount of money for full fill their daily
needs or demands
 There are hundreds of soldiers were martyred in cross broader ceasefire events
 There is so many communal riots happened across the country
 Darning this period so many people died in line front of the banks
 There are huge amounts of the money spent in printing and handling new currency
also the collecting and handling demonetized bank notes
 As the result the NPAs of the banks increases.
As results the demonetization in India proved aimless weapon, which seen the daily
announcement made by the finance minister, RBI and by our prime minister. During
this period the Indian political parties and their leaders not still behind the bitrate Indian
people. For the example when the 50s days of demonetization came to end. In the Uttar
Pradesh, one of the largest state in India, the state government ruled by the Mr.Akhilesh
Yadav and his family party came with melodrama in front of the nation. In this way the
public hearted with demonetization forget and move their mind in the family conflict.
I am not here to say that the both state and central government planned to move public
mind, but this accrued at this time, an illiterate personal can say easily. During this
policy changing scenario the Indian government came with undocumented scheme that
is gone with digital and make Indian economy as digital economy. By this
announcement there are hundreds of the private mobile payment companies’ pop-ups.
Provide the platform of digital payment, in the whole country. These most of the
companies are private holdings. This found in Indian history private companies which
belongs with financial sectors easily bankrupts and flew way with the deposits. What
guarantee behind these companies not going to bankrupts in near future.
RBI deputy governor Viral Acharaya said government should take decision to privatized the
public sector banks
On 21st February 2017 RBI deputy governor Viral Acharaya said that the PSUs not
working properly, because they are lacking due to unavailability of capital. This way they
must be recapitalized to curbs the NPAs problems. He gave the suggested to the
government five options for recapitalization of public sector banks:
 through private capital raising
 asset sales
 mergers
 prompt corrective action
 Disinvestments.
The options proposed by him, the results of that privatized the public sector banks only.

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Let us considers the merger of RRBs and privatization of PSUs accepted by the government
The results this make huge private banks in Indian financial system. In this way these banks
becomes only profit making bodies only. By the results the aim of Indian constitution make
welfare society becomes null and void. Rural population of India friendly with cash, in
results the bank’s branches becomes the business less in this way these banks shift their
branches rural to urban, but keep in mind these private banks ready to provide world-class
services to customer but, they charge heavy taxes on loans and other services, which seen
mass comparison customer between PSUs bank and private banks. The government gives
funding’s for the welfare for the farmers for financial assistance through the PSUs or RRBs
and most of time they failed in repay. But in the case of private banks they may go one
time, or but not another time. They also followed another illegal methods to repay the loans
Also for the profit making, they must go for the highly risky investment which seen during
2008 US recession when the ICICI bank had invested 100 crors in risky housing bond in
America. As the result RBI came to in media to clarify that ICICI banks is safe and not
going to bankrupts.
If RBI going to privatized
As we know that RBI is the sole and supreme body to regulate Indian banking and financial
sector. He had the power to regulate and control the activities done by the commercial and
financial banks. When the commercial banks become totally privatised then they must be
followed the illegal methods for the profit making.This becomes against the rules that made
by the RBI. The government also seeks the profits from these banks. RBI may put
restriction between them. The Largest private banks such SBI get with government with
suggestion are to be
 Merge RBI with me
 Privatized RBI
 Increase the private share in RBI
In this way, the Indian economy becomes the most favourable destination for illegal
financial activities, corruption, black money destination, and the lost their welfare identity
in the world.
.
Finally welcome back to 1770s in Indian economy?
As the result make situations like 1770s where Indian economy at peak of the prosperity
and in trade in business. But there is no welfare for the peasants and farmers. As the results
the huge drought faced buy the Indian approx. 1/3 of the population Bengal provinces died
due to hunger and plague. But this time this becomes more difficult situation than which
seen US recession 2008. In the US recession main reason behind that, only is that change
in small rules for the enhancement the investment in America only that are given below

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1. US government replace the Glass Stiegole act 1933, under this act commercial banks,
investment banks and the insurance companies work in the different areas, they are
separated with each other. They not intervene their works and activities.
2. US government implemented Gram Liech Bliely financial modernization act in 1990s.
It picked up the barrier which works between the commercial, investment and insurance
institution. The results that US housing recession came in front of the world. The
ICELAND whole nation become bankrupts, they start their economy from the zero.
3. Indian great economist, Dr.Raghuram Rajan predicted about US recession in 2005, who
is the present RBI governor
4. The Black Swan by the Nicolas Taleb also predicted this situations
5. For the grabbed this situation US government start quantitative easing program to pull
economy back on the track
The main reason behind to easy came up with this situation by America that is Rule of law.
But if this situation happened to India not easy to get back with situation, because the India is
run by the Rule by law. Which easily modified by the politicians as per the full fill their current
needs and political hungers. As the results India goes with worrisome situation than US and
Island, there will be more communal, social, economic and political disturbances in economy.
The enemy nations like Pakistan and china may get a golden opportunity to acquired most of
territory by means of the war or economy support or by the diplomatically manner

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CONCLUSION AND SUGGESTION
Yes, I support that Indian economy needs more financial reforms, but in the case banking
sector privatization totally against. The aim establishment and nationalization of the banks
is that make a welfare society and economy for all. Still, there is the huge difference
between poor and rich or ruling and serving people in India. Yes here I am also accepted
that the NPAs of the banks in India but the privatization of these banks, not a core solution.
There may be other many ways, from which one, I am going to propose here for the
overcome with NPA problem
 According to the risk, banks should go with the insurance with the insurance
companies
 If the government provides the financial assistant to the poor, then the government
insure to the bank if there is loss their finance or capital, I will pay you back.
 Also, make the financial assistance taker may give a written assistant to the bank if
she/he used this money for another work if the particular loans proved insolence or
NPAs may liable for the penalty
 Also, suggest that create a body that put his eyes on the misuse of the financial
assistance other work that not assign for.
 If the loan or financial assistance has taken for tangible or non-tangible goods and
services must be insured by the insurance company under the various category of
product at the low premium.
Finally, this paper based on the study of the present situation and hypothecation. I am not saying
that it going to happen in the future if it happened this only the bad luck of India.
References
1. http://www.thehindubusinessline.com/moneyandbanking/financeministrylookingatmergingrrbswithsponsor-
banks/article2985225.ece
2. http://www.livemint.com/Industry/kLwGwe3VN1pg6ieapJGdxH/FiveassociatebanksBMBmergewithSBI.html
3. http://www.thehindubusinessline.com/moneyandbanking/rbiplansprivateandnationalamcstodealwithbanksstressed-
assets/article9553973.ece
4. Lecturer on the US housing crisis by the Sandeep Marudhane sir form the PT educational
5. About the Indian economy form the NCRT 8TH
slandered history book

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