Banking and Financial Markets in India

After the nationalization of commercial banks in 1969 and 1980, banking business in India was a near-monopoly of the Government of India. Resultantly, the banking sector suffered from lack of competition, low capital base, low productivity and high intermediation cost. The role of technology was minimal and the quality of service was poor. Wide-ranging banking sector reforms in India were introduced in the early 1990s, and have supported the transition of the Indian economy to a higher growth path, while significantly improving the stability of the financial system. This book traces developments in the banking sector and financial markets in India since Independence in 1947.