A Study of Channels of Alternative Banking and Its Impact on Customers Satisfaction A Study of Select Public and Private Sector Banks in Nanded District

Abstract

Banks are playing most important role in the development of economies of the nations in world. The growth of any economy goes hand in hand with the development of financial sector. The banks are the life blood of any economy. Banks generate money by channelizing the savings of people. For a customer, banks are the most preferred source of availing financial services. Bank is an industry that provides all basic banking services like accepting deposits and providing loans. Banks are the important part of financial service industry. Banks have been playing catalyst role in socio-economic development of Indian economy. It consists of public sector as well as private sector banks. Development involves not merely economic changes but also social and industrial in many underdeveloped countries and this call for new sets of values and new concepts promoted by society and government. No path to development is likely to be smooth and banking is the base for economic development. newlineAfter nationalization of banks in India (1969 and 1980), it has changed from class banking to mass banking. Before nationalization of banks in India, private sector banks were working with business approach. On 30 August 2019 Union Finance Minister Nirmala Sitaraman declared merger of six public sector banks (PSBs) with four better performing leading banks so as to streamline the size and working. As a result, Public sector banks reduced to 12 from 27. Private sector banks remain to 22. According to RBI, all Scheduled Commercial Banks (SCB) in India are catering their banking services through 91,780 offices (75,779 offices of Public Sector banks and 16,001 offices of Private Sector Banks) and 1,071,600 employees working with the banks in India as on March 2017. newlineModern technology is rapidly changing the systems of work like paper-pen is replaced with files on computer. Banks and customers both are changed from operation centric approach to service centric approach. Customers are now able to do their all financial and non-financial transactions with