The Reserve Bank of India claims India’s banking sector to be sufficiently capitalised and well balanced. Our financial and economic conditions are comparatively far superior to majority of the countries across the globe. Credit, market and liquidity risk studies so far, reveal that Indian banks have been generally resilient over time and have fairly withstood the global economic downturn.
Recently, the Indian banking industry has seen the roll out of innovative banking models such as payments and small finance banks. With the grant of in-principle approval to 11 payments and 10 small sector bank in the fiscal year 2015-16, RBI’s latest measures might change course by helping in re-forging the domestic banking industry.