In recent years, there has been a considerable widening and deepening of the Indian financial system, of which banking is a significant component. With greater liberalization, the financial system has come to play a much larger role in the allocation of resources than in the past and its role in future can be expected to much larger it than at present. Given the- significance of the Indian banking system in the allocation of resources, one cannot afford to underplay the importance of a strong and resilient banking system.

___________________________________________________________________________________

Keywords: Financial System, Liberalization, Banking System, LPG.