Implications of Financial Sector Reforms on Banking Sector in India

Abstract

After 1991, the globalisation era started all over the world along with liberalisation and privatisation in India. It has drastically brought changes in the economies of countries all over the world. In India, financial sector reforms took place causing effects on the whole banking sector. Financial sector reforms refer to the reforms in the banking system and capital market. Financial sector is a backbone of economy of any country. It plays very crucial role in mobilisation and allocation of resources the ingredients of financial sector i.e. Banks, money market, capital market, financial institutions etc. Instruments and markets which mobilize resources from the surplus sector and channelise the same to different needy people.