Content area
Full text
ABSTRACT
"Non fund based income in Indian Banking Sector : an in-depth study" is an attempt to examine the empirical relationship of various components of non fund based income and fund based income and to suggest a new working theory in the era of post liberalised economy. The Indian Banking sector plays the most crucial role in the development of economies of the country. The emergence of private sector banks brings revolution in the Indian banking industry. Thus banking sector plays even greater role in development of rural economies of the country. Indian banking sector has emerged as one of the strongest drivers of nation's economic growth. The Indian banking industry has made outstanding advancement in the last few years, even during the time when the rest of the world was struggling with financial meltdown. This could have been possible due to two vital factors. Firstly the liberalization of the financial and banking sector resulted in the launching of new generation tech-savvy private banks, ultimately creating a new competitive economic environment. Secondly, the conservative policies of the Reserve Bank of India (RBI) has protected Indian banks from recession and global economic turmoil. In this way the Indian banks manage to be at higher value in comparison to Asian banks. "Bank is in the Business of Maintaining Risk not avoiding it". We deem it desirable to review the various aspect of over study and sum up the important observations. As such, this chapter exemplifies the major findings and offer new suggestion for the increasing Non-Fund Based Income of banking industry in India. The banks in India need to focus at ensuring greater financial stability to tackle lots of challenges successfully to keep growing and strengthen of banking sector. Banking sector in India needs to start moving into areas that yield Non-Fund Based Income activities that earn more income rather than interest income. Banks should extend the technology which is used in internet banking in Order to remove the difficulties.
Keywords: RBI, Liberalization, Non-fund Based Income, Fund Based Income, Banking Technology etc.
INTRODUCTION
Banking sector plays an important role in growth of economy of a country. It is the lifeline of the nation and an important pillar of financial system, which plays a vital role...