Banking Sector has been one of the most promising and profit driven

financial sector for over a decade in India. During the financial and
economic crisis that was felt globally by the superpowers of banking and
finance, Indian banking and economy scenario was stable and working
just fine. The financial sector in India has registered an overall growth of
15% in the last few years and has shown tremendous performance
globally. The Reserve Bank of India could be highly credited for playing
such a dynamic role to make this happen. The measures it took on time
saved the Indian economy to crash and fall onto its face when the whole
world was crunching under global recession. The reforms in the monetary
policies and macro-economic policies by the RBI influenced the Indian
economy to its core. Growth of the banking system and its reach was also
responsible for the overall economic growth in the country. With the ever
increasing number of customers getting attached with public sector banks
through various schemes and policies, the industry has transformed
completely. Inclusion of latest technology in banks and introducing core
banking has connected the banks to the entire country in one string.

Scope of Economic Growth through Banking Sector Development

Economic Growth of any country depends upon the growth of income and
spending capacity of its population. In a hugely populated country like
India, it has always been a tough task to manage and maintain the
economic growth by the subsequent governments.

There is a wide open market for the financial sector in the country which
needs to get tapped by the bodies. This is exactly the scenario with the
banking sector at this very hour. Banks have penetrated through the rural
and sub-urban areas of the country, joining people from all over the
districts and villages to banking. The age old traditions for asking money
from Zamindars, Joetdars is slowly becoming a thing of the past as more
and more farmers are joining with the banks of the country to avail the
benefits that they have been given by the government through various
schemes and policies drafted out specially to address their plea. The key
to growth of the economic sector is to tap this potential market of rural
people and bring them to the iota of banking, which the public sector
banks in the country have seemed to do well for the last few years. With
the growth in banking sector, there is a consequent growth felt in other
sectors as well. The trickle down theory of economics works in this model,
the banks being at the top. Banks promote saving and increases the
capital formation of the country. In return it offers credit and loan for the
needy, who are ready to initiate their own ventures and business. It
promotes the production and employment of the region in which these
banks are lending loans to its people. This production and employments
result in income generation and consumption of other products from the
market. Consequently that improves the spending and saving power
amongst the people, keeping the circle intact and improving the economy
of the country.

New Approach to attract customers to Banking

There are new and improved approaches taken by the RBI itself to
motivate and incorporate more and more people to the ambit of banking.
The inclusion of internet banking, mobile banking, self-help groups and
microfinance institutes have become really important indications of the
government to include more and more people to the banking sector
through digital means throughout the nation. The use of information and
Communication Technology (ICT) and its further development would
attach people from the rural and sub-urban areas to the banking sector
enabling them to take advantage of the schemes and policies launched
and run by the government at present. This would in turn help the
economy of the country to prosper.