Indian Financial Sector: Focus on Indian Banking Environment

Introduction - Overview of the Financial Sector The Indian financial industry is a multifaceted field with advanced growth and development. The Indian financial sector includes commercial banks, insurance companies, non-bank partnerships, pensions, mutual fund companies and other financial institutions that serve the Indian economy. However, the financial industry is dominated by the Bankin division, commercial banks account for 60% of the total assets held by the financial system, and then the insurance industry occupies it.

It is the main focus of this study to closely examine the impact of globalization on Indian banking industry and focus on the challenges facing Indian banks. The times of the financial world since the Bretton Woods era have witnessed major changes. Due to technological change and competitive weakness, the financial community has adopted better technology and is forced to attract customers. The scope of products and services was limited to the 1970s (Raul 2005, p. 39). Until 1991, when implementing the Narsimha Committee's recommendations, regulations such as interest rate control and government control were upgraded, resulting in a rapid and fundamental change. Currently, the banking industry offers a wide range of services including securitization, leasing and rental purchase, custody service, deposit and factoring. Liberalization, privatization and globalization have brought new financial institutions, intermediaries, more professional and technical innovation.

From the perspective of globalization, the financial sector can be regarded as the most exposed sector. Bank reform is primarily guided by the recommendations of the financial system committee. Indian currency markets are divided into two categories: organizational type and non-organized type. Organized commercial banks and cooperative banks. Unorganized sectors are more popular than rural and urban traditional banks, especially for non-productive purposes such as rituals and short-term loans.