research paper
“PRESENT POSITION AND CHALLENGES OF FDI IN RETAIL
BANKING.”
Mrs. Priya Saxena
Asst. Professor in Management
ABSTRACT
Retail banking in India has emerged as one of the major drivers of the overall banking industry and has witnessed enormous growth recently. India being a signatory to World Trade
Organization’s General Agreement on Trade in Services had to open up the banking sector to foreign investment also. FDI stands for Foreign Direct Investment, a component of a country’s national financial accounts. FDI is investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. This research has called for financial institutions to be more entrepreneurial, flexible, adaptive and innovative so as to effectively meet the changing demands of today’s population and progress around the globe. The research problem in the paper is to study the issues and challenges of FDI in retail banking in India and to analyze the impact of FDI on retail banking.
KEYWORDS: - FDI, Innovative practices, Retail banking, Communication technology, Scientific management..
INTRODUCTION
FDI refers to capital inflows from abroad that is invested in or to enhance the production capacity of the economy. It can be a subsidiary, joint venture or merger or acquisition and includes Greenfield and Brownfield projects. So, Foreign Direct Investment is an investment made by a foreign company or entity into a company or entity based in another country. Foreign direct investments differ substantially from indirect investments such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct
BANKING.”
Mrs. Priya Saxena
Asst. Professor in Management
ABSTRACT
Retail banking in India has emerged as one of the major drivers of the overall banking industry and has witnessed enormous growth recently. India being a signatory to World Trade
Organization’s General Agreement on Trade in Services had to open up the banking sector to foreign investment also. FDI stands for Foreign Direct Investment, a component of a country’s national financial accounts. FDI is investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. This research has called for financial institutions to be more entrepreneurial, flexible, adaptive and innovative so as to effectively meet the changing demands of today’s population and progress around the globe. The research problem in the paper is to study the issues and challenges of FDI in retail banking in India and to analyze the impact of FDI on retail banking.
KEYWORDS: - FDI, Innovative practices, Retail banking, Communication technology, Scientific management..
INTRODUCTION
FDI refers to capital inflows from abroad that is invested in or to enhance the production capacity of the economy. It can be a subsidiary, joint venture or merger or acquisition and includes Greenfield and Brownfield projects. So, Foreign Direct Investment is an investment made by a foreign company or entity into a company or entity based in another country. Foreign direct investments differ substantially from indirect investments such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct