International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395 -0056
Volume: 03 Issue: 04 | Apr-2016 www.irjet.net p-ISSN: 2395-0072
© 2016, IRJET | Impact Factor value: 4.45 | ISO 9001:2008 Certified Journal | Page 1982
Indian Banking Sector: Then, Now & the Road Ahead
Karishma Bhandari
1
, Harvinder Soni
2
1
Research Scholar, Pacific University, Udaipur
2
Professor, Pacific University, Udaipur
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Abstract : A Bank is a financial institution which is involved in borrowing and lending money. Banks take customer deposits in
return for paying customers an annual interest payment. The banks then use the majority of these deposits to lend to other
customers for a variety of loans. The difference between the two interest rates is effectively the profit margin for banks. Banks play
an important role in the economy for offering a service for people wishing to save. Banks also play an important role in offering
finance to businesses who wish to invest and expand. These loans and business investment are important for enabling economic
growth.
The story of banking started with money lenders accepting deposits and issuing receipts in their place. Banking was usually for the
fulfillment of the credit needs of trade, commerce, agriculture as well as individual in the economy. Bank nationalization in India
marked a paradigm shift in the focus of banking as it was intended to shift the focus from class banking to mass banking.
Nationalization, Liberalization and technology advancement have changed whole banking in India during last few years and
changes are still on through technology advancement and financial sectors reforms. The whole journey of Indian banking Industry
is categorized into three phases: Pre Independence Phase, Independence Phase and Post Independence Phase.
Keywords: Banking Industry, Nationalization, Liberalization, Financial Inclusion and Technology advancement .
Evolution Phases