Marketing of Banking Services in India

Marketing of Banking Services in India

Rakhi Arora (Jaipur National University, India)
Copyright: © 2017 |Pages: 27
DOI: 10.4018/978-1-5225-2475-5.ch005
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Abstract

Banking sector plays an important role in Indian Financial Sector.It has a long history that has gone through various stages of development after Liberalization, Privatization, and Globalization (LPG) has taken place. The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks. The scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act, 1934. The scheduled banks are further classified into: nationalised banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks, which are controlled and governed by Reserve Bank of India (Central Bank of India) and Ministry of Finance. In this era, the government has issued licenses to the new entrants to establish new banks to serve the Indian society. This chapter focuses on to show the various undergone phases of Indian banking system, growth of deposits and credits, technological development in Indian banking sector, services provided by the Indian banks, benefits and challenges faced by the Indian banks.
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Objectives Of The Chapter

  • 1.

    Indian banking system has a great history in various phases. Readers would understand the origin and growth of Indian Banking System.

  • 2.

    Every bank is offering various services to end customers under an umbrella. Readers would come to know about various services provided by Banks in India for their customer’s satisfaction.

  • 3.

    Various challenges are being faced by the Banks all over the world as E-banking is in practice now a days. Readers would come to know about the challenges faced by Indian Banks.

  • 4.

    The Central banks of India reviews the monetary policy every year and takes the necessary steps to control the money supply. In this context, readers would understand the marketing mix for Banks in India.

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Introduction

A bank is a financial institution which deals with the monetary activities by accepting deposits, lending to the various parties against securities and performing agency service to its customers.

Banking sector is the blood vascular system of our economy. It has a positive role to play in the economic development of the country as repositories of people’s savings and purveyors of credit, especially as the success of economic development depends on the mobilization of resources and its investment in an appropriate manner. The banking system of any economy is the track on which it runs. Its structure and working are integral to a country’s financial performance and economic growth. Indian banking system is unique, the like of which exits nowhere in the world. The banking system in India having gone through various stages of development now consists of central bank (RBI), public sector scheduled banks and private sector, scheduled as well as non-scheduled Banks. In 21 century the Indian banking industry has experienced a series of significant transformations in the last few decades. Due to cutthroat competition and new entrants, the banks have enforced to undertake speedy changes in their operations to maintain the market share. They are using new and innovative services to retain and maintain their customer base but in comparison of urban areas they are focusing more on rural areas and providing services like merchant banking, insurance, mutual fund, any time any where banking etc. to their customers apart from borrowing and lending. But as every coin has two aspects. At one instance invention of new technology made banking sector accessible and convenient to common men but on the other instance it pose certain big challenges for banking sector.

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