Deciphering the banking sector

       “India cannot have a healthy economy without an effective and a sound  banking system.”

        India’s banking system has reached several outstanding achievements. I think the prime reason for the enormous growth of India is due to the location of banks in the remote corners of the country. The country’s banking system is very structured. The Reserve Bank of India stands first in the hierarchy. Being called as the “Banker’s bank” it is the central bank which formulates, implements and monitors India’s monetary policy. It has a majority stake in the State Bank of India.

        This blog focusses on the modern banking sector which has abundant facilities like e-banking, establishment of ATMs, introduction of credit and debit cards and much more. The facility of internet banking enables the person to access his account from any corner of the world. Hence the modern banking system has revolutionised the choices available with the customers. But the banking sector reforms are still not complete. A lot more is required to revamp the public sector banks. The option of allowing foreign direct investment beyond 50 % in the Indian banking sector has also been under consideration. Many industrial sectors are based on the banking system. The growth and the future prospects of the Banking industry will also be discussed in the upcoming posts.