Retail banking in India since 1991: a comparative study of public sector banks and private sector banks

Abstract

Retail banking refers to the banking services that are geared primarily to the individual customer. Commercial banks as well as smaller community banks usually make available retail banking products and services to their customers. The focus of retail banking is on consumer markets. Entities dealing with retail banking provide a wide range of personal banking services, including offering savings and checking accounts, bill paying services, as well as debit and credit cards. Through retail banking, consumers may also obtain mortgages and personal loans. Retail banking products may also extend to small and medium sized businesses. Today much of retail banking is streamlined electronically via Automated Teller Machines (ATMs), or through virtual retail banking known as online banking. Retail banking deals with lending money to consumers. This includes a wide variety of loans, including credit cards, mortgage loans and auto loans, and can also be used to refer to loans taken out at either the prime rate or the subprime rate. In Retail banking, the banking institutions execute transactions directly with consumers, rather than corporations or other entities. Retail Banking is also described as the part of a bank s operations providing services at its branches for small (in bank terms) account holders. Retail banks offer banking services to individual customers such as saving accounts, personal loans, remittance services etc. Retail banking is generally conceived to be the provision of mass market banking services to private individuals. It has been expanded over the years to include in many cases service provided to small and medium sized businesses. Some banks may also include their private banking business (i.e. services to high networth individuals) in their definition of retail banking. The evolution of retail banking in India can be traced back to the entry of foreign banks. The conventional banking business by public Sector Banks (PSBs) was done on a more generalised approach and there was .....