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Banking in India
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Banking in India
Banking in India
Reserve Bank of India (RBI) states that India’s banking sector have been well-regulated and adequately capitalised.  Market, credit and liquidity risk studies propose that Indian banks are generally flexible and have withstood the global downturn well.
Recently the Indian banking industry has witnessed the roll-out new banking modules like small finance and payments banks. RBI’s current measures may go a long way in helping the restructuring of the domestic banking industry.
The Indian banking system consists of public sector banks, private sector banks, foreign banks, regional rural banks, urban cooperative banks, and rural cooperative banks, in addition to cooperative credit institutions.
Government Initiatives
Indian banks are continuously focusing on adopting an integrated approach to risk management. Banks have already embraced international banking supervision. 
Reserve Bank of India (RBI) has decided to set up the Public Credit Registry (PCR) an extensive database of credit information which is accessible to all stakeholders. 
Recently, the Indian banking industry has witnessed a historical decision of demonetization which has to lead to an excellent liquidity crunch. The impact of this liquidity shock on India’s GDP is still questionable and is under the evaluation of experts, but it is certain that all monetary transactions will come under the banking system which will lead to the next big step in the expansion of Indian Banking system.
The objectives of this research articles are to show the growth in the banking sector, technological development and computerisation in the Indian Banking sector. Technology enhances choices, create new markets and improves productivity and efficiency. Rising incomes are expected to increase the need for banking services in rural areas and therefore drive the growth of the sector. As of September 2018, Department of Financial Services (DFS), Ministry of Finance and National Informatics Centre (NIC) launched Jan Dhan Darshak as a part of financial inclusion initiative. It is a mobile app to help people locate financial services in India.
Demonetization has raised the deposit funds in the Indian Banks. It led the banks to keep a significant part of deposits in the form of cash deposits.  Sizes of deposits have gone up as the unaccounted money in the way of Rs.500, and Rs.1000 were flowing to the Banks. Post demonetization, several banks lowered their domestic term deposit rates and lending rates. Surplus liquidity conditions have helped facilitate the transmission of monetary policy to market interest rates.
Demonetization has pushed the public to digital banking. A cashless economy is one in the flow of cash within an economy is insubstantial, and all transactions have to be via electronic channels such as, credit, direct debit and debit cards, electronic clearing, payment systems such as Immediate Payment Service (IMPS), National Electronic Funds Transfer and Real Time Gross Settlement in India. Demonetization has led to an increase in the use of plastic cards, line Banking, an opening of new accounts, the number of customers in the branches and the use of ATM.
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