A bank is an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans or make an investment to derive a profit from the difference in the interest rates paid and charged, respectively.
In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players.
India’s economy has been one of the stars of global economics in recent years. It has grown by more than 9% for three years running. The economy of India is as diverse as it is large, with a number of major sectors including manufacturing industries, agriculture, textiles and handicrafts, and services. Agriculture is a major component of the Indian economy, as over 66% of the Indian population earns its livelihood from this area. Banking sector is considered as a booming sector in Indian economy recently. Banking is a vital system for developing economy for the nation.
However, Indian banking system and economy has been facing various challenges and problems which have discussed in other parts of project.
INDIAN BANKING SYSTEM
Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth... [continues]
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(2010, 11). Indian Banking Sector. StudyMode.com. Retrieved 11, 2010, from http://www.studymode.com/essays/Indian-Banking-Sector-489629.html
"Indian Banking Sector" StudyMode.com. 11 2010. 11 2010 <http://www.studymode.com/essays/Indian-Banking-Sector-489629.html>.
"Indian Banking Sector." StudyMode.com. 11, 2010. Accessed 11, 2010. http://www.studymode.com/essays/Indian-Banking-Sector-489629.html.