Finance and banking give the life to economy of a country. Banks receive deposits from public and also borrow money from other organizations for increasing their working capital funds. Now-a-days banking sector works like the backbone of the economy. Nowadays plastic money, net-banking and E-wallets are becoming increasingly popular in urban and semi-urban areas in India. The present paper sprays the light on history of Indian banking industry. It evaluates the notable trends in Indian baking sector like improved risk management practices, technological innovations, financial inclusion, consolidation, digital payment system etc. The present study also evaluates the schemes introduced by the Indian government to enhance the Indian banking sector; India’s banking industry is adequately capitalized and well regulated as stated by the Reserve Bank of India (RBI). India’s economic and financial conditions are far better to any other developing countries in the world. Study of market, credit and liquidity risk indicates that Indian banks are generally springy and have withstood the global downswing well. Innovative banking models like small finance banks and digital payments have recently emerged in Indian banking sector. Restructuring of domestic banking industry may go a long way with the help of new measures of RBI.

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Keywords: Banking Sector, Indian Economy, Financial Inclusion, Cashless Economy, Banking Trends.