Disruption in Banking in Emerging Market Economy: An Empirical Study of India

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Reena Agrawal


The present study was taken up to capture the ongoing disruptions in banking in the Indian economy. The objective of this research was to: (1) study the initiatives taken by Reserve Bank of India to stimulate the payment market, (2) explore the disruptions in the Indian payment space, (3) examine the digitization at banks in India and (4) identify the challenges faced by traditional Indian banks and (5) propose measures to cope with threats posed by non-bank players. The study found that as technology companies and other non-bank players have successfully penetrated into large customer segments by offering basic banking services, to the customers at their doorsteps and at
their convenience; it is obligatory for the traditional banks to expand market outreach and enrich service quality via digital podia, strategic alliances and disruptive innovations, in case they wish to avoid the risk of being relegated to back-office utilities.

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