Recent Trends in Banking – Issues and Chall...

Recent Trends in Banking – Issues and Challenges

Author Name : Muralidhar Dunna, Dr. K. K. Garg

ABSTRACT

The Banking industry and financial institutions are vital sectors of any economy. Development of these two sections of the economy can impact the growth of the country in an incredible way. In the era of “Digital India”, the banking and financial services in India have undergone a massive evolution and the phenomenon continues. The change can be attributed to various components like new regulatory policies and customer expectations. However, the one element that has affected banking and financial services the most is technological advancement. There has been considerable innovation and diversification in the business of major commercial banks. Some of them have engaged in the areas of consumer credit, credit cards, merchant banking, leasing, mutual funds etc. A few banks have already set up subsidiaries for merchant banking, leasing and mutual funds and many more are in the process of doing so. Some banks have commenced factoring business. The present paper studies the recent trends in banking system in India and also impact of these on Indian economy.

Keywords: Banking industry, Digital India, Economic development, Financial services, Technological advancement