INDIAN BANKS have slowly and gradually developed over a period of time. The liberalisation, privatisation and globalisation policies of 1990s have given a tremendous boost to this sector. This has also resulted in an increased competition in the sector. The end beneficiary of all the changes are the customers.

Before liberalisation, only nationalised banks were in the market. They enjoyed the monopoly, which resulted in a bad service quality to the customers. However, after 1990s, the scenario changed drastically. The market became more customer friendly. Banks started to acquire larger market share. On the same lines, they started to increase their branches penetrating deeper into the society. But this strategy lasted only for a short span of time. The market today, is technology driven. The banks, which adopted modern technology were able to survive. Now this is the age of technology, where things are invented every moment. This has resulted in the introduction of various facilities provided to the customers by the banks.

With the advent of technology, banks tried to increase the efficiency of every employee and increase the average revenue per employee. Automated teller machine (ATM) was a step in this direction. It is also rightly called as “All time Money”. Using this facility, the customers can withdraw money from the ATMs and also can deposit money and checks at the there. This has reduced the queues outside the banks and hence, saves ample amount of time of the customers.

Time and distance has almost vanished from the scene with the introduction of schemes like, ’banking at your doorstep’. Mobile banking (MB) and E-banking(EB) has added to further ease of the customers. Whenever the MB facility is used by anyone, he/she receives message for each transaction happening into his/her account. This has highly reduced the possibility of fraud. Transfer of money from one account to another can also be done very easily and comfortably. EB allows to receive the summary of daily transactions into the accounts. Customers can keep a watch to the happenings into their account.

The new concept of Core Banking Solution (CBS) has made possible ’anytime and anywhere banking’. It connects all the branches of a particular bank and hence, wherever, the customer goes, he is never too far away from his bank. Payment of bills can be made just at the press of a button.

Indian market is opening up for the foreign banks in 2009. Hence, a lot of things needs to done by the home grown banks, so that they don’t lose their market. This is a consolidation phase where banks will have to come together to form a single entity, which will be more bigger and stronger than the original individual entity. There is a lot to happen in this sector and this is just a beginning.