Indian Banking - Challenges, Reforms, and Road Ahead

Abstract

Banks invariably are the foundation stone and a catalyst in growth and stability of an economy. It is strong enough a reason, why banks and banking reforms in India have occupied paramount importance since independence. The government has been making efforts to reform the banking sector in accordance with the changing landscape, with-in, and external to our economy. These changes were significantly paramount in molding the economy in the desired direction, nonetheless the changes brought its own peculiar challenges. Some of them were due to the objectives propagated by government and some were offshoot of the reforms introduced. The article tries to give an overview of the various reforms done so far, the challenges faced, in response to policy changes by the regulators and government alike. It also discusses the impact of these reforms specially on the income, earnings and NPAs of the banks. The grey areas that still are very crucial and must be looked into for the growth of banking sector and the economy alike are also mentioned in the article.

Keywords: Indian, Banking, Challenges, Reforms, Economy, Catalysts

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