BANKING SECTOR REFORMS IN INDIA

Commerce

This paper tracks the story of banking sector reforms in India is essentially a revolution as the economy grows and becomes more sophisticated, the banking sector has to develop paripasu in a manner that it supports and stimulates such growth. With increasing global integration, the Indian banking system and financial system has as a whole had to be strengthened so as to be able to compete. India has had more than a decade of financial sector reforms during which there has been substantial transformation and liberalization of the whole financial system. It is, therefore, an appropriate time to take stock and assess the efficacy of our approach. It is useful to evaluate how the financial system has performed in an objective quantitative manner. This is important because India’s path of reforms has been different from most other emerging market economies: it has been a measured, gradual, cautious, and steady process, devoid of many flourishes that could be observed in other countries. The reforms in the banking sector are Prudential Measures, Competition Enhancing Measures, Measures Enhancing Role of Market Forces, Institutional and Legal Measures, Supervisory Measures and Technology Related Measures etc.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.