A Study on Universal Banking and its Impact on Indian Financial Market
To maintain equilibrium between demand and supply in present global economic revolution, technological and metamorphic environmental developments within and outside the political boundary there is a need of banking revolution which can efficiently mobilize and productively utilize public savings. However, the Universal Banking (UB) emerged as a new mechanism to perform this function as a financial supermarket with diversified range of financial product under one roof. Corporate can get loans and advances, can deposit fund, can avail other handy services from these multipurpose financial institutions. India being emerging economy has oceanic opportunities which are yet to be explored. Knowing the fact Banks and multipurpose financial institutions have plans to diversify in a big way ignoring profit margin in the short run due to switching costs incurred in moving to a new business. Thus in this paper an attempt is made to explore potential of multipurpose financial institutions / universal banking in respect to Indian market and their future in long run in deregulated an intensified competition among banks and form of non banking financial intermediaries. It is expected that the modern banking concept of financial supermarkets will play effective role in bridging the financial gap and also expected that healthy competition between domestic and international financial giant will be advantageous for customers due to new high breed financial products and specialized services