Issue Details

THE ROLE OF BANKING SECTOR IN INDIA’S ECONOMIC DEVELOPMENT

ABSTRACT

One of the most significant contributors to the expansion of a country’s economy as a whole is the expansion of its financial and banking sectors. The expansion of this industry is dependent on the high-quality of the services that it offers to consumers in a variety of different fields. As a result of the adoption of several new economic reforms, the importance of banking services has recently come to the forefront in India. At the present time, India is home to a highly developed banking system that is made up of a variety of different types of banks. These types of banks include public sector banks, foreign banks, old and new generation private sector banks, regional rural banks, and co-operative banks. The Reserve Bank of India is the institution that serves as the system’s central authority. The banking sector of the Indian economy currently serves as a cornerstone, giving assistance not just during times of economic growth but also during times of economic contraction. The banking sector has recently been on the receiving end of a paradigm change on a scale never before seen, one that was brought about by the use of cutting-edge technology and the utilisation of contemporary resources. In order for bankers to effectively navigate this transformation, they must first provide a clear definition of next generation banks, since there is now no explanation that can be considered conclusive. In addition to this, they need to develop long-term operational plans that go beyond simple profitability in order to guarantee the continued existence of these financial institutions for the sake of a brighter future. This article explores the innovative banking products and channels of the new generation and offers light on the notion of new generation banking.

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