In our country, commercial banks are the fastest and largest growing financial intermediaries in financial market. They have been playing a very crucial role in the process of development of our financial system. The banking system was developed during British era. British East India Company formed 3 major banks. After amalgamation of 3 banks, the name was given Imperial Bank which was taken over by SBI in 1955. The regulation of banking controlled by RBI & after nationalization of 14 large banks in 1969, an urgent need aroused in the Indian Money Market which could make the financial system more competitive, productive, and efficient and hence later on Private Banks like HDFC, ICICI banks etc came into existence. It brought Productivity and efficiency in the banking transactions. Now a days as banks are expanding various modern approach like internet banking, virtual banking, supervision and audit will have to be strengthened. Banks will have to pay greater attention to safeguard the interest of general public by creating transparency in the system.

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Keywords: Banking System, Reforms in Banking, Economic Growth.