An Empirical Study on the Concept of Universal Banking from India's Perspective

Posted: 25 Aug 2013

See all articles by G. S. Popli

G. S. Popli

Delhi School of Business

Sima Kumari

Delhi School of Professional Studies and Research (DSPSR)

Date Written: August 24, 2013


Indian Banking Sector has gone through a series of reforms after the liberalization of the economy and introduction of financial sector reforms. In the last two decades of changes happening in the Indian Economy, the Banking Sector has played a pivotal role in giving a new direction to economy. The changes in the banking sector can be summed up in two aspects – first it is moving towards the global standards and norms and second the system of banking has become more customers oriented now. A host of new financial products have been introduced and the overall financial environment in the country is getting a lot more mature with people taking interest in the new products.

The suggestions of Narsimham Committee and Khan Committee for consolidation of Banking in India through mergers and amalgamations has brought about a change in commercial banks and marching them towards the concept of Universal Banking. As a major group of financial institutions, Indian banks have been expanding their service scope, and hence, universal banks. The Indian Banking System is also embracing the completely new objectives through transformation. It is the new way of tingling, changing attitudes and functioning to the expectation of tomorrow’s world of banking.

This paper makes a modest attempt to explore whether the current structure and practices of the local financial environment in India contribute to this lengthy transformation from narrow to universal banking. An effort has also been made to explore whether the banks require more support and necessary guidance from Government and Reserve Bank of India for getting them converted into universal banking system for the benefit of Indian customers as well as for their survival.

Keywords: Financial products, penetrate, diversify, transformation, narrow banking, universal banking system

Suggested Citation

Popli, Gurmukh Singh and Kumari, Sima, An Empirical Study on the Concept of Universal Banking from India's Perspective (August 24, 2013). Available at SSRN: or

Gurmukh Singh Popli (Contact Author)

Delhi School of Business ( email )

VIPS - Technical Campus
AU Block, Outer Ring Road
Delhi, 110034

Sima Kumari

Delhi School of Professional Studies and Research (DSPSR)

9, Institutional Area,
Sector 25 Rohini Phase III
Delhi, Delhi 110085

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