What Is The Evolution Of Banking Sector?

INDUSTRY PROFILE

INTRODUCTION:

The Banking sector plays major role in the economic development of a country. It is financial institution and a financial intermediary that accepts deposits into lending activities either directly by lending or indirectly through capital markets. A bank is connection between the customers which have capital deficits to those customers with capital surpluses.

MEANING AND DEFINITION OF BANKING: A bank is an institution, which deals with the money and credit. It accepts the deposit from the public, makes fund available to those who needs them, and helps in the remittance of the money from one place to another. The banking is the collection of money as a deposit and then lending out this money in order

Thus bank is an intermediary, which handles other people’s money, both for words their advantage and to its own profit. But bank is not merely a trade in money but also important manufacture of money. In other words, bank is a manufacturer of credit.

EVOLUTION OF BANKING IN INDIA: Indian banking industry is the lifeline of the nation and its people. Banking sector is help to developing the various sectors of the economy. Thus, economic development of a country is depends on the success of banking industry and this success is determined to a large extent by understanding the needs and satisfaction of its customers. Today, Indian banks can confidently compete with modern banks of the world.

HISTORY:

The Indian banking industry has its foundation in the 18th century and has had varied evolutionary experience since then. The modern banking system in India with the establishment of general bank of India in 1786.from the journey of the Indian banking industry can be classified into three distinct phases.

PHASE 1 – Early phase of Indian banks from 1786 to

The state Bank of India Act of 1955 the Imperial Bank of India was nationalized. The State Bank of India act as formed the principal agent of RBI, The State Bank of India were nationalized 7 subsidiaries. The fourteen major banks are nationalized by Mrs.Indira Gandhi in 1969. All banks are now state owned.

PHASE 3: This phase has introduced many more product and facilities in the banking sector and its reforms. In 1991 the chairmanship committee was set up by his name and worked for the liberalization of banking practice. Mobile banking and net banking was introduced and ATM services were introduced. The services provided by banks have become easy and convenient; The Indian banking industry is passing of customers market.

BANKING STRUCTURE IN