Role of Indian Banking Sector in Promoting Financial Intermediation

Banking sector plays a cardinal role in the development process of a nation’s economy. Their effort in enhancing the financial literacy cannot be ignored, as financial inclusion boosts the confidence in our rural community. The extent of financial intermediation in the economy can be gauged by examining financial development, structure, and pattern of savings amongst the class of people, particularly the households. The main purpose of this study is to examine the role of Indian banking sector in promoting financial intermediation. To understand a little bit more, in this study two schemes viz., PMJDY and PMMY were taken. Data were analyzed and results were reported zone wise. Among all the zones, East seem to have take the lead in promoting the scheme. Further in terms of PMMY too, all the financial intermediaries have played their role in going to the grass roots and really making it happen. Even though it’s a great achievement for an country with very vast and diverse population, we have more to achieve before we make tall claims.