Emergence of Regulating Authority- Finance Ministry formulated the major financial policies one among them was structuring of institution like RBI (lender of last resort), which governs commercial banking and non commercial banking segment. It devises credit analysis strategies like formulating repo rate, reverse repo rate, CRR, SLR and it also has power to reprimand commercial banks in case they don’t follow its direction.

Materialization of Private Sector Banks- Before liberalization there were few private sector banks in India but after that many private sector banks sprung up which led to emergence of competitive  market where buyer has innumerable options w.r.t interest rates. Now, RBI is proactively giving licenses to huge industrial houses too.

Deregulation of Banking System- Many norms were introduced in banking sector related to income recognition, asset classification, provisioning of delinquent loans and for capital adequacy. In order to meet stipulated capital adequacy requirement substantial amount of capital was provided by Govt to PSB. Moreover, bank’s lending norm was liberalized and many norms sprouted up like ALM, risk management that encompassed credit, market and operational risks.

 Consolidation- Another major aspect of liberalization was consolidation and mergers of banks. The merger of Punjab National Bank with New Bank of India, oriental bank of commerce acquired GTB state bank of India acquired its subsidiary State Bank of Saurashtra and State Bank of Indore

 Emergence of Technology- Earlier there was no computerization at all i.e. no provision for internet banking, manual entries in passbook, manual counting of notes, long queue of customers etc but with passage of time computers gained its prominence and now all the banks are well connected i.e. they are CBS. Technologies like iflex dominate public sector banks.

Numerous products and services are offered by bank- Earlier bank was considered as lending institution that lends money to create credit but now it performs certain other functions too like issuing of traveler’s cheque, issue of gift cheque, mutual fund services, banc assurance services and much more.

Thus, with liberalization banks have altogether altered its image and life has become quite convenient and easy.

For more information visit  internet banking and visit online calculator for calculating installment of loans.