Role of Indian Banks in the Growth of the Indian Economy
{draw:g} {draw:custom-shape} SSUB INTRODUCTION: In the current global order, where the world has become a big village, consumers take a global look at the products and services in terms of price, quality, delivery and after-sale services. This trend has sown the seeds of competition in every sector of economy and banking sector is no exception to this event. Banking, the world over, has been changing at a spectacular pace. This change is due to multifarious factors like the need to be efficient in functions, thirst for becoming finance superpowers than mere banks, growing importance of private banking, the rise in high net worth individuals, etc. the decade of 90s has witnessed a sea change in the way banking is done in India. Technology has made tremendous impact in banking. “ANYWHERE BANKING” and “ANYTIME BANKING” have become a reality. Growing integration of economies and the markets around the world have made global banking a reality too. The surge in globalization of finance has also gained momentum with the technology advancements, which have effectively become overcome the national borders in the financial services business. India, as we know, is one of the 104 signatories of Financial Services Agreement (FSA) of 1997. This gives Indian banks an opportunity to expand on a quid pro quo basis. BANKING IN INDIA: Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the