A STUDY ON RECENT TRENDS OF BANKING SECTOR IN INDIA

Abstract

In the financial sector the banking industry is the largest player, and it has also been undergoing a major change. Today the banking industry is stronger and capable of withstanding the pressures of competition environment. In Todays, we are having well- developed banking systems with different classes of banks such as - public sector banks, foreign banks, and private sector banks etc. The Reserve Bank of India is the main head of these systems. Since from 1969, there is tremendous changes have been taking place in the banking industry. The banks have shed their traditional functions and have been coming up with innovating, improvement and with the new types of services which needs of their customers. The welfare activities of the country as well as the customers are mainly done through the banking system of India. With the advantage of electronic banking, electronic funds transfer, RTGS, NEFT, IMPS and other similar products, funds transfer within the time frames which would have appeared impossible a few years ago has made it reality. With the networking and internet connections new challenges are arise related to security privacy and confidentiality of transactions for that the banking sector follows the SSL (secure socket layers) for maintain the confidentiality of transactions. In the year 1991, the Government of India has opened the doors for foreign banks to start their operations in India and provide their wide range of facilities to the customers, thereby the strong competition arise among the domestic banks, and helping the customers by providing the best services. The present era is the cashless transactions, E-cheques, mobile wallets and giving special emphasis to digitalization etc.