Banking Sector Regulation in India: Overview, Challenges and Way Forward
| Published date | 01 September 2018 |
| Date | 01 September 2018 |
| DOI | 10.1177/0019556118783065 |
| Subject Matter | Articles |
Article
Indian Journal of Public
Administration
64(3) 473–486
© 2018 IIPA
SAGE Publications
sagepub.in/home.nav
DOI: 10.1177/0019556118783065
http://journals.sagepub.com/home/ipa
Banking Sector
Regulation in India:
Overview, Challenges
and Way Forward
Geethanjali Nataraj1,2
Ashwani1,2
Abstract
The Indian banking industry is undergoing the rollout of innovative banking mod-
els in the form of more promotion to private banks for attaining the productivity
and efficiency. However, increase in the quantity of non-performing assets, poor
credit growth and low profitability of Indian banks cast doubt about the industry’s
resilience towards maintaining the country’s economic growth trajectory. While
taking lessons from global regulatory bodies and keeping in view the domestic
problem of the Indian banking industry, the dire need of the hour is to maintain
proper checks and balances on banking transactions. The article goes on to sum
up the various measures initiated by government to deal with banking-sector
challenges and how an attempt is made to adapt regulatory measures from global
best practices which could help the banking sector in India become more robust,
efficient and effective in preventing all fraudulent transactions and enhancing
the quality of its assets.
Keywords
Asset intermediation, capital management, market structure, profitability,
regulation
Introduction
The economics literature has well identified the multidimensional role of financial
system in economic growth under endogenous growth theories. Recently, the
1 Professor of Economics, IIPA, New Delhi, India.
2 Department of Economics, NIT, Kurukshetra, Haryana, India.
Corresponding author:
Geethanjali Nataraj, Professor of Economics, IIPA, New Delhi, India.
E-mail: geethanjali_n@yahoo.com
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