Indian banking has come a long way since its liberalization. New private sector banks brought the necessary competition into the industry and spearheaded the changes towards higher utilization of technology, improved customer service and innovative products. In spite of their sheer size, public sector banks proved to be surprisingly nimble and flexible to meet the emerging needs of customers. As the body responsible for bank supervision, RBI has played its part in ensuring that banks are in tune with the international standards and norms. Today, the Indian banking sector is as competitive and healthy as any in the world.

Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by the public sector, the banking industry has so far acted as an efficient partner in the growth and development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development.

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