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What is the banking Sector?

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The banking sector is regarded as an indispensable part of the economy of every country. It has always been one of the most vital sectors for the economy to function as there is a significant increase in the volume of financial transactions. Some factors that contributed to it include economic growth, an increase in money supply, growth of banking habits, an increase in trade and commerce, etc. In short, the scope of the banking sector has increased with time in India.

Banking Sector Introduction

Banking activities in our economy have become so imperative that even a temporary halt due to demonetization has left the general public, trade, commerce, and industry seriously affected. Till 2015, rural India was somewhat of an untapped part of the banking industry, under the leadership of PM Sh. Narendra Modi, RBI, and the Government of India came out with the proposal of Financial Inclusion and implemented it successfully and judiciously.

Private sector banks in India represent part of the Indian banking sector. The Private sector banks are those banks where a large part of equity is held by private shareholders and not by Govt. of India. Banking in India has been dominated by public sector banks since 1969, as all major banks were nationalized by Govt. of India. Post liberalization in Banking policy in 1990, private sector banks re-emerged as they grew faster using the latest technology and providing exceptional customer services.

How Many private banks are in India?

Presently, there are 12 public sector banks, 22 private sector banks, 46 foreign banks, 56 regional rural banks, 1485 urban cooperative banks, and 9600 rural cooperative banks operating in India.

The banks added 2796 ATMs in the first four months of FY23, against 1486 in FY22 and 2815 in FY21. And 100% of new bank account openings in rural India are being done digitally.

The banking sector is considered the backbone of the Indian economy. It has become the most exciting industry in the present times as it offers respectable and secure career opportunities to job seekers and students.

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