Acceso usuarios
Krishna V. Chaitanya
Ever since the financial sector reforms were introduced in early 90’s the banking sector saw the emergence of new generation private sector banks. These banks gained at most popularity as they have technology edge and better business models when compared to public sector banks and the most important thing is they are able to attract more volumes simply because they meet their customers requirements under one roof. If the newer players can do that then why can’t the bigger players like the Financial Institutions (FIs) try their hands on it? Here comes the concept of universal banking, its emergence, merits and related issues. The present paper focuses on understanding the concept of universal banking in India and attempts to explain the regulatory role, regulatory requirements, key duration and maturity distinction and lastly the optimal transition path. The paper also gives an overview of the international experience and argues in favor of developing a strong domestic financial system in order to compete in the global market.
