Authors :
Dr. Ashok Kumar Rai
Volume/Issue :
Volume 8 - 2023, Issue 6 - June
Google Scholar :
https://bit.ly/3TmGbDi
Scribd :
https://tinyurl.com/5jfjwhhj
DOI :
https://doi.org/10.5281/zenodo.8204230
Abstract :
The Indian banking and financial system
have come a long way since its early days. As of 2022,
the total assets across all banking sectors (public and
private banking) crossed $2.67 trillion. India has one of
the world's largest retail banking and financial services
institutions - with 12 public sector banks, 22 private
banks, 46 foreign banks, 56 regional rural banks, 1485
urban cooperative banks, and 96000+ rural cooperative
banks, along with other credit institutions.
The banking industry is undergoing a radical shift,
one driven by new competition from FinTechs, changing
business models, mounting regulation and compliance
pressures, and disruptive technologies. The emergence
of FinTech/non-bank startups is changing the
competitive landscape in financial services, forcing
traditional institutions to rethink the way they do
business. As data breaches become prevalent and
privacy concerns intensify, regulatory and compliance
requirements become more restrictive as a result. And,
if all of that wasn’t enough, customer demands are
evolving as consumers seek round-the-clock
personalized service.
Banking sector of India is one of the fastest growing
sectors and helps in sustaining economic growth of the
country. The banks are the lifeline of our economy and
play a crucial role in the development of the country. In
the present scenario banks are facing lots of challenges
because of inflation, denominations of currency notes,
frequently changing bank rates policy and because of
these challenges there is an adverse effect on the growth
of the banks as well as on the growth of the country. The
economic reforms have also produced a new and efficient
customer who belongs to middle class and new mix of
players like public sector units, private banks, and
foreign bank. The emerging competition has generated
new expectations from the existing and the new
customers. The biggest opportunity of the Indian
banking system today is the generation of new
consumers and also to motivate them to invest their
money in banking system in the form of Small
Investment Plan(SIP), Recurring deposit, Fixed deposits,
Mutual funds etc. But because of upcoming challenges
the banking system is like, has been stopped as no new
customer are generated and the long standing customers
are also pulling their hands back from the investment
previously done. The basic objective behind writing this
paper is to study the challenges being faced by the
banking sector of India like decrease in the deposits but
increase in the withdrawals which results in the decrease
of money in the banks and in the economy.
Keywords :
Deposits and withdrawals, Economy and Lifestyle.
The Indian banking and financial system
have come a long way since its early days. As of 2022,
the total assets across all banking sectors (public and
private banking) crossed $2.67 trillion. India has one of
the world's largest retail banking and financial services
institutions - with 12 public sector banks, 22 private
banks, 46 foreign banks, 56 regional rural banks, 1485
urban cooperative banks, and 96000+ rural cooperative
banks, along with other credit institutions.
The banking industry is undergoing a radical shift,
one driven by new competition from FinTechs, changing
business models, mounting regulation and compliance
pressures, and disruptive technologies. The emergence
of FinTech/non-bank startups is changing the
competitive landscape in financial services, forcing
traditional institutions to rethink the way they do
business. As data breaches become prevalent and
privacy concerns intensify, regulatory and compliance
requirements become more restrictive as a result. And,
if all of that wasn’t enough, customer demands are
evolving as consumers seek round-the-clock
personalized service.
Banking sector of India is one of the fastest growing
sectors and helps in sustaining economic growth of the
country. The banks are the lifeline of our economy and
play a crucial role in the development of the country. In
the present scenario banks are facing lots of challenges
because of inflation, denominations of currency notes,
frequently changing bank rates policy and because of
these challenges there is an adverse effect on the growth
of the banks as well as on the growth of the country. The
economic reforms have also produced a new and efficient
customer who belongs to middle class and new mix of
players like public sector units, private banks, and
foreign bank. The emerging competition has generated
new expectations from the existing and the new
customers. The biggest opportunity of the Indian
banking system today is the generation of new
consumers and also to motivate them to invest their
money in banking system in the form of Small
Investment Plan(SIP), Recurring deposit, Fixed deposits,
Mutual funds etc. But because of upcoming challenges
the banking system is like, has been stopped as no new
customer are generated and the long standing customers
are also pulling their hands back from the investment
previously done. The basic objective behind writing this
paper is to study the challenges being faced by the
banking sector of India like decrease in the deposits but
increase in the withdrawals which results in the decrease
of money in the banks and in the economy.
Keywords :
Deposits and withdrawals, Economy and Lifestyle.
