A CRITICAL STUDY OF THE PRIVATE BANKING SYSTEM IN INDIA

AUTHOR – KUNAL KUMAR TULI, STUDENT AT AMITY UNIVERSITY

BEST CITATION – KUNAL KUMAR TULI, A CRITICAL STUDY OF THE PRIVATE BANKING SYSTEM IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (10) OF 2025, PG. 386-391, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

The private banking sector in India plays a pivotal role in fostering financial intermediation, mobilizing capital, and supporting economic development. In recent decades, private banks have significantly expanded their presence, often outpacing public sector counterparts in terms of technological adoption, service delivery, and customer experience. This dissertation undertakes a critical examination of the structure, performance, and regulatory framework of the private banking system in India. It explores the evolution of private banking post-liberalization, evaluates key operational and governance models, and assesses the systemic importance of leading private sector banks. The study further analyzes regulatory oversight by the Reserve Bank of India (RBI), especially in light of rising concerns over non-performing assets (NPAs), financial frauds, and corporate governance lapses. Using both qualitative and quantitative methodologies, including case studies of prominent banks, the research identifies structural vulnerabilities, compliance challenges, and policy gaps. The dissertation concludes with recommendations aimed at strengthening risk management, enhancing regulatory transparency, and promoting sustainable growth within India’s private banking ecosystem.