Globalization of Indian economy has resulted into modernization and innovations in banks in India.Globalization has brought about structural changes in the world economy. This includes services, particularly banking and financial services. Although service sector contributes significantly to the national output, the impact of globalization on services is yet to capture the attention of researchers and policy makers in many countries.
Since the mid-1990s, there has been a steep increase in the number of branches and ATMs opened by foreign banks in the emerging economies. This is being led by banking crisis, deregulation and globalization of financial services. Most of the foreign entries have been through two routes: (i) Acquisition of domestic banks in the host country, (ii) Strategic alliances.
The banks do business in foreign countries also and this business has grown slowly over a period of time. The overseas business of banks include provision of trade-related banking services such as negotiation and collection of bills, opening of letters of credit, channelizing foreign inward remittances, and mobilizing savings abroad. They also provide import and export finance to local businessmen, arrange for foreign currency loans, promote project export, joint ventures and provide merchant banking services. |
