Abstract
The economic reforms initiated by the Government of India about two decades ago have changed the landscape of several sectors of the Indian economy. The Indian banking sector is no exception. This sector is going through major changes as a consequence of economic reforms. The role of the banking industry is very important as one of the leading and most essential service sectors. India is the largest economy in the world having more than 120 crore population. Today in India the service sector contributes half of the Indian GDP and the banking is most popular service sector in India. The significant role of the banking industry is essential to speed up the social economic development. Banks play an important role in the economic development of developing countries. Economic development involves investment in various sectors of the economy. Our banking system, at the present juncture, is, however, facing significant challenges from several quarters. These challenges, if not addressed quickly and adequately, may result in the loss of opportunities as and when economic growth starts picking up momentum. In a sense, it has implications for both- the banks as well as for the economy as a whole, a strong banking system is one of the essential prerequisites in the quest for growth. This Paper focuses on the current issues faced by the banking system.
References
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