Financial Reforms and New Development in Banks

The New Economic Policy introduced by the Government of India in 1991 has brought about a sea- change in the Financial Sector in the country Several developments which were at one time considered unthinkable took place in India in the financial as well as other sectors as a consequence of the New Economic Policy of 1991 The birth of New Generation Private Sector Banks step by step opening of the countrys economy a more liberal exchange control regime easier access for She private sector to external commercial borrowings and a more benign approach to Foreign Investment in India are some examples These developments were accompanied by the advent of new Financial Products and Services Though Credit Card as a financial product has been in existence in the country since the 80s it was only after the introduction of the New Economic Policy of 1991 that Credit Cards literally took wings and became well known to a large section of the Indian society as a payment mechanism Till then it was considered as something meant only for the elite The growth of the Cards Industry during the last two decades has been so substantial that cards are today accepted as a payment mechanism even in remote corners of the country and the number of cardholders and card users has grown from a few lakhs prior to 1991 to several crores in 2009 185 pp.…