Banking development and challenges

The Indian banking system has been transformed into a strong and sound banking as a result of wide ranging policy initiatives and supportive measures undertaken by Government and Reserve Bank of India. Today our banking system is perceived as sound by International standards. The global banking crisis began with US sub-prime mortgage market in 2007 has turned into world crisis. It has affected almost all economies of the world. The Indian economy is largely insulated from the crisis. The Indian banks both in public sector and private sector are well capitalised and regulated. This has helped the Indian banking system to withstand the crisis and prepare for challenges with greater confidence.

The financial and banking system has undergone fundamental changes because of revolution of Information and Communication Technology. In the 21st century Information Technology and electronic fund transfer system have emerged as new pillars modern banking. Financial literacy & inclusion and micro credit have emerged as new thrust areas of banking world as half of the population is still financially excluded.