DIVERSIFICATION OF BANKING SERVICES-A STUDY ON REGIONAL RURAL BANKS IN KARNATAKA

Dr. M. Kumaraswamy; Jayaprasad D.

Volume : V, Issue : I, January - 2016

DIVERSIFICATION OF BANKING SERVICES-A STUDY ON REGIONAL RURAL BANKS IN KARNATAKA

Dr. M. Kumaraswamy, Jayaprasad D.

Abstract :

The banking sector has played a vital role in the overall economic development of the country right from the time of nationalization. Due to globalization the Indian Public sector banks have been facing keen competition from the Private Sector and Foreign banks. The banking industry, which is a part of the service sector, has undergone tremendous changes mainly to keep pace with fast changing global business.The economic reforms paved the way for the competition as the mantra for the survival of the banks in particular and all other concerns in general. Regional rural banks are operating in financial system mainly to achieve the global bench mark by diversifying its banking activities to the changing banking global environment. Public sector banks including regional rural banks could not tune themselves to the globalised standards. The economic reforms guided the public sector to equip to meet all the challenges of the globalised scenario, failing which, privatization is unavoidable Economic liberalization could provide disinvestment and divestment also. This is very essential not only for their survival but also for robust growth at a global level. Innovation of new banking services is the need of the hour; as such every bank may ponder whether it will opt for the mega event by that the rural banks can achieve transformations in its operations and marketing of its services in the competitive market.