New Face of Indian Banking Industry - Emerging Challenges & Potential

The Financial Sector Reforms have changed the face of Indian Banking Industry into a much regulated and organized industry. The market developments coupled with Liberalization & Globalization have resulted in transformation of banks in a much higher pace with technology acting as a catalyst. The Indian Financial System is a milieu interspersed with a range of players like PSU’s, Private Banks, Regional Rural Banks, Foreign Banks, Cooperative Banks and many more. Gone are the days when the customers had to stand in long queues for making transactions in the commercial banks in India. Now with the proliferation of Internet Banking transactions have become much more convenient. Though, the banking sector in India has adjusted quite fairly with the emerging environment and is trying to extend its reach and diversity, yet greater challenges lie ahead. The exposure to the international competition and the BASEL III norms, the banks will have to gear up for the stringent Capital Adequacy Norms. Banks will have to prepare themselves for the greater challenges lying ahead in future.This study focuses on the changes and shifts expected in the Indian Banking Industry, the opportunities and challenges ahead and the role of technological innovation which could be the change agent in the coming years. It makes a modest attempt to provide a brief overview of the major developments in the field of banking. An effort has been made to present the different phases and changes witnessed in the Indian Banking System and an insight into the future ahead.