BANKING SECTOR REFORMS AND DEVELOPMENT OF BANKING INDUSTRY IN INDIA
Indian banking industry emerged strongest emerging way for economic growth and development to face of Global Banking is undergoing a transition. Reforms in the financial sector, covering banking, insurance, financial markets, trade, taxation etc. have been a major catalyst in strengthening the fundamentals of the Indian economy. The broad objective of the financial sector reform has thus been to create a viable and efficient banking system. Performance of the banking sector has impact across the length and breadthof the economy. The major banking sector reforms comprises of modifying the policy framework; improving the financial soundness and credibility of banks; creating a competitive environment, and strengthening of the institutional framework. The banking sector reform measures to enhance efficiency and productivity through competition were initiated and sequenced to create an enabling environment for banks to overcome the external constraints which were related to administered structure of interest rates, high levels of pre-emption in the form of reserve requirements, and credit allocation to certain sectors.
An attempt has been made in this paper to provide a brief overview on performance of the Banking industry in India. It also includes a critical review of the performance as well as impact of Banking Sector Reforms in India. It has also explained the models of swot analysis and Porter’s Five Forces Model, and covered the role and measures initiated by the Reserve Bank in India [RBI] in order to implement the Banking Sector Reforms in India.
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