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Complex nature of banking operations

Consolidation of the industry

Banking is as old as authentic history and the modern commercial banking are traceable to ancient times. In India, banking has existed in one form or the other from time to time. The present era in banking may be taken to have commenced with establishment of bank of Bengal in 1809 under the government charter and with government participation in share capital. Allahabad bank was started in the year 1865 and Punjab national bank in 1895, and thus, others followed Every year RBI declares its 6 monthly policy and accordingly the various measures and rates are implemented which has an impact on the banking sector. Also the Union budget affects the banking sector to boost the economy by giving certain concessions or facilities. If in the Budget savings are encouraged, then more deposits will be attracted towards the banks and in turn they can lend more money to the agricultural sector and industrial sector, therefore, booming the economy. If the FDI limits are relaxed, then more FDI are brought in India through banking channels.

SOCIAL FACTOR

Employment

Demographics

Working conditions

Payment system charges

Before nationalization of the banks their control was in the private parties and only big business houses and the effluent sections of the society were getting benefits of banking in India in 1969 government nationalized 14 banks . to adopt the social development in the banking sector it was necessary for speedy economic progress consistent with social justice in democratic political system, which is free from domination of law and in mind both the national and social objectives, banker were given direction to help economically weaker section of the society and also provided need based finance to all the sector of the economy with flexible and liberal attitude. Banks are providing various types of loans to farmers , working women, professional and traders.. they also provide Education loans to the student and housing loans , consumer loans.

Banks having big clients or companies have to provide services like personalized banking to their clients because these customers do not believe in running about and waiting in queues for getting their work done .the bankers also have to provide these customer with special provision and at times with benefits like food and parties . but the banks do not mind incurring these costs because of the kind of business these clients bring for the bank. But have change culture of human life in india and made life much easier for the people

TECHNOLOGICAL FACTOR

Growing dependence on technology

Growth in use of ATMs

Broker surveillance

Banking Softwares like pegasis

Technological plays a very important role in banks internal control mechanism as well as services offered by them. It has in fact given new dimension to the banks as well as services that they cater to and the banks are enthusiastically adopting new technological innovation for devising new product and services.

The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking . the use of ATM and internet banking has allowed