This paper discusses the role of banking services in Indian economy. Banking is one of the most influential factors on the economies of today’s society. As with everything these days, technology is changing where, when and most of all, how we do things, specifically banking and other related financial transactions and arrangements such as mortgages. Banks act as important players in the financial markets.
They play a vital role in the economy of a country. The new business environment mainly driven by globalization and liberalization has provided tremendous opportunity for the Indian banking industry to grow. Banking industry has traditionally been one of the most regulated ones in India. However, with opening up of the economy in most sectors, 1991 onwards, this industry has been no exception and has experienced a gradual phased deregulation. Several reforms have been initiated in this sector ranging from interest rate liberalization to restructuring of the public sector banks to increased competition and hence efficiency.
Banks today are expected to exhibit more discipline. In tune with this, the banking sector in India has undergone structural changes during the last decade.