A Study on Reforms of Banking Sector in India

Indian Banking industry plays very crucial role in the economic development but the rise in non-performing assets in Indian banks casts doubt on the credit system and threatens future economic prospects. Another concern confronting the Indian banking sector is a decline in profitability and return on assets. The Indian financial sector is plagued by corruption financial transactions. To meet the difficulties of banking modified in the banking system are essential. Major Reforms in banking sector in India have started in the year 1991. The primary focus of banking reform is to changes on NPA, capital sufficiency, and operational diversification. The goal of this paper is to examine the history of banking reforms and to identify the various reasons behind the banking sector reforms and know the concept of Indradhanush mission and facing post Banking Reforms challenges.