Description

Introduction

1. Context Building:

One of the crucial macroeconomic areas, which has been at the center of the focus in India nearly

for the past three decades, is the soundness and efficiency of the Indian banking system. It is

now well recognized the world over that a well-functioning banking sector is a pivotal

hinge on which hinges the stability of the financial system. The stability of the financial system

defines the growth prospects of the economy and the pace of growth that could be realized. A

greater realization of this fact in the post-1990 economic scenario has been keeping the

Indian banking system at the center of the focus of the policy planners and Government. With the

passage of time, the focus on the banking system is getting accentuated by two major

factors- the growing universalization of banking operations and increasing

internationalization of banking operations.