bank liberalisation in india – liberalisation in banks _ banking awareness

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Bank Liberalisation in India – Liberalisation in

Banks

Posted by Admin on November 7th, 2011 | 4 Comments

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Liberalisation in banking sector in India noticed in early 1990s’ when India adopted a new economic policy

for the development of the nation. Narasimha Rao government embarked on a policy of liberalization,licensing a small number of private banks.For the first time in India new private banks got license for providing banking service. These banks came to be known as the New Generation tech-savvy banks.

The first bank in India set up after the adaptation of new liberalization policy in banking sector was GlobalTrust Bank. It was later amalgamated with Oriental Bank of Commerce. The list of banks set up after new

liberalization policy includes Global Trust Bank, UTI Bank (Now known as Axis Bank), ICICI Bank and HDFC Bank.

This move towards the Liberalisation along with the rapid economic growth in India, re-energize the bankingsector in India. Indian banking sector has noticed rapid growth with strong contribution from all sector of

banks – government banks, private banks and foreign banks.

The next stage for the Indian banking sector has been set up with the proposed relaxation in the norms for Foreign Direct Investment (FDI). All Foreign Investors in banks can holds up to 74% with some restrictionsof the company.

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