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anytime anywhere banking facilities'. Automatic voice recorder now answer simple queries currency accounting machines makes the job easier and self service counters are now encouraged . credit card facility has encouraged an era of cashless society. Today mastercard and visa card are the two most popular cards used world over. The banks have now starting issuing smartcard or debit cards to be used for making payments, these are also called as electronic purse some of the banks have also started home banking through telecommunication facilities and computer technology by using terminals installed at customers home and they can make the balance inquiry. Get the statement of accounts , give instructions for fund transfers . through ECS we can receive the dividends and interest directly to our accounts avoiding the delay or chance of loosing the post.

Today banks are also using SMS and internet as major tools of promotions and giving great utility to its customers. For example sms function through simple text message sent from your mobile, the message are then recognized by the bank to provide you with the required information.

All these technological changes have forced the bankers to adopt customer-based approach instead of product-based approach.

FINANCIAL SECTOR

A financial system, which is inherently strong, functionally diverse and

displays efficiency and flexibility, is critical to our national objectives of creating a market-driven, productive and competitive economy. A mature system supports higher levels of investment and promotes growth in the economy with its depth and coverage. The financial system in India comprises of financial institutions,financial markets, financial instruments and services. The Indian financial system is characterised by its two major segments - an organised sector and a

traditional sector that is also known as informal credit market. Financial

intermediation in the organised sector is conducted by a large number of financial institutions which are business organisations providing financial services to thecommunity. Financial institutions whose activities may be either specialised ormay overlap are further classified as banking and non-banking entities. The Reserve Bank of India (RBI) as the main regulator of credit is the apex institution in the financial system. Other important financial institutions are the commercial

banks (in the public and private sector), cooperative banks, regional rural banks and development banks. Non-bank financial institutions include finance and leasing companies and other institutions like LIC, GIC, UTI, Mutual funds,Provident Funds, Post Office Banks etc.

Reforms

The quantum of resources required to be mobilised, as the economy

grows in complexity and generates new demands, places the financial sector in a vital position for promoting efficiency and momentum. It intermediates in the flow of funds from those who want to save a part of their income to those who want to invest in productive assets. The efficiency of intermediation depends on the width, depth and diversity of the financial system. Till about two decades ago, a large part of household savings was either invested directly in physical assets or

put in bank deposits and small savings schemes of the Government. Since thelate eightie