Evolution of Banking in India
Earlier banking sector in India was only known to be a medium of deposits and loans, but since 1992, when Dr. Manmohan Singh opened the doors for Privatization, Banking sector went into huge transformation. Private sector banks entering into the economy, not only they raised competition in the market, but also due to technological innovation, they have given serious competition to old methods of functioning of Public Sector banks. In modern era, where banking sector is heavily dependent on technology, gone are the days where a common man had to wait in queues for hours. Now everything is available at fingertip and that too at rapid pace. Thanks to ATM and Internet banking which revolutionized the method of banking.
The Present and Future of Banking
In future also, the concept of Retail Banking in Urban areas will be limited to Current Account holders only. As such we have technology like ATM, Mobile Banking, Internet Banking, KIOSK machines and Cash Deposit machines. The population of urban area is educated and hence they know how to use technology for best use. Now it is 70% of rural population of our country which is not having much knowledge of banking and finance sector hence they have to resort to local sources of funds like Zamindaars or Chit funds. The future of banking lies with Rural population and that all banks have sensed. That is why they are expanding in states like Rajasthan, Madhya Pradesh, Bihar and Uttar Pradesh. The future lies to tap potential market in any country and that is what banks are doing today.
Growth and Development of Banking in India
Banking sector has knit and grown its web in the fields like Real Estate, Venture Capital, Investment Banking etc. With these services provided under an umbrella, banks are expanding their service portfolios. In coming decade, we may see that growing sectors like IT, Finance, Investment, Real Estate and Power sector will continue to require support of banks. We will see banks bringing more and innovative products, with the help of technology, under one roof and banking will be made easier specially for illiterate common person. With the increase in population and rise in per capita income, the services of banking will be in huge demand and this sector will remain evergreen as our country grows on the path of development.
These are some of the common interview questions which you may face during a bank job interview, read as much as you can on these topics, get the correct data, analyse it well and then go for the interview.
Sr Academic Trainer
Institute of Finance, Banking and Insurance
Latest posts by saurabh (see all)
- What is the Future of Banking Sector in India – Most Common Interview Question - March 20, 2016
- How to get into Investment Banking in India – Career Advice - April 3, 2014
- How to get Job in Private Sector Banks in India – Procedure and Guidance - March 28, 2014
- Is Banking a Good Career Choice for MBA / What Jobs in Banks for MBA - March 21, 2014