Banking sector is regarded as an indispensable part of the economy of every country. It is always been one of the most vital sector for the economy to function as there is a significant increase in the volume of financial transactions. Some of the 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, scope of banking sector has been increased with time in India.
Banking activities in our economy has 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 an untapped part of the banking industry. Under the leadership of PM Sh. Narendra Modi, RBI and 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. Private sector banks are those banks where large part of equity is held by private shareholder 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 have grown faster using the latest technology providing exceptional customer services.
Presently, there are 25 private sector banks operating in India. In 2015, RBI & GOI has issued license to 2 new banks, 10 small finance banks, and 10 payment banks. IDFC, Bandhan, AU, Equitas have started operations whereas others will start functioning in FY 2017-18.
The banking sector is considered as 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.