Changing Role Of Banks In India Since Economic Reforms Of 2019

The role of banks in India has transformed a great deal since economic reforms of 1991. These changes arrived credited to LPG, i.e. liberalization, privatization, and globalization plan being followed by GOI. Since then most traditional and outdated concepts, practices, procedures and ways of bank significantly have changed. Today, banking institutions in India have become more service-oriented and customer-focused than these were before 1991. They also give a great deal of importance with their rural customers now. They may be even willing, ready to help them and serve the bank needs of country-side India regularly. The changing role of banks in India can be glanced in points depicted below.

The following points briefly highlight the changing role of banking institutions in India. The above-mentioned factors reveal the role of banking institutions in India is changing. Now, let’s discuss how bank in India is getting much better every single day. Before 1991, the entire service of banks in India was very poor. There were very long queues (lines) to receive payment for checks and to deposit money. In those full days, some bank or investment company staffs were very rude to their customers.

  • Investment to help induce urban redevelopment
  • Single and earn between $19,751 and $30,500
  • Work-related training courses
  • Tax-preparation software

Banks in India have finally become very customer and service focus. Their service is becoming quick, efficient, and customer-friendly. This positive change is mostly credited to rising competition from new private initiation and banking institutions of the Ombudsman Structure by RBI. Under mobile banking service, customers can simply carry out major banking transactions by using their cell phones or mobiles simply.

Here, first a customer needs to trigger this service by getting in touch with his bank or investment company. Generally, bank officer asks the customer to fill out a simple form to register (authorize) his mobile number. After sign up, this service is activated, and the client is provided with a password and username. Today, almost all banks in India to give a mobile-banking service.

The ‘Bank or investment company on Wheels’ system was presented in the North-East Region of India. Under this system, banking services are made accessible to people staying in the far-flung (remote) areas of India. This structure is a nice attempt to provide bank needs of rural India. In profile management, banks do all the investments work of their clients.

Banks make investments their clients’ money in shares, debentures, set deposits, etc. They first enter a contract with their clients and charge them a charge for this service. They have the full power to invest or disinvest their clients’ money. However, they need to give income and safety to their clients. Banking institutions in India have started issuing Electro-Magnetic Credit cards with their customers already.

Credit cards help customers spend money (loaned up to a certain limit as previously resolved by the bank) that they don’t have in hand. They get a regular declaration of their withdrawals and buys. Along with the transacted amount, this statement includes the interest and service fee also. The complete amount (as reflected in the statement of the credit card) must be paid back to the lender either fully or in installments, but before the due date.