India’s Banking industry is one of the most efficient capital regulated and well-managed industry. The economic and financial conditions are much controlled than many other countries all over the world. It is so efficient that it has faced all the crisis, even the global crisis very efficiently. Asset of Public sector banks stood at approx. Rs. 108 lakh crores in Financial Year (FY) 19- 20. During Financial Year (FY)16-20 bank credit grew at a Capital Asset Gearing Ratio (CAGR) of 3.57%. Due to pandemic (COVID-19) banking industry suffered a lot. But it was able to face the ill-effects of pandemic due to innovative banking models. Digitalisation of banking industry is one of the required and much needed adaptations by banks in this challenging scenario. To make availability of credit faster it has introduced a scheme of Pre-Approved Personal Loans (PAPL). This scheme gives the benefit to the borrower to receive the loan in few minutes, without paper work. It has a two-fold benefit both to the lender and also to the borrower. This paper critically examines the current status of Pre-Approved Personal Loans (PAPL) of the Indian banks. It also highlights various developments and initiatives taken by the Indian government to boost up the banking industry. It also discusses about various categories of loans provided by Indian banks.

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Keywords: Banking, Digitalisation, Loans, Pre-Approved Personal Loans (PAPL).