Since nationalization of banks in 1969, the banking sector had been dominated by the public sector. There was financial subjugation, role of technology was narrow, no risk management etc. It resulted in little profitability and pitiable asset quality. The nation was caught in profound economic crises. The Government contemplated to announce wide-ranging economic reforms. Banking sector reforms were part of this predicament. In August 1991, the Government employed a committee on banking system under the chairmanship of M. Narasimham. This paper seeks to address the issue of banking sector reforms in India and the impact of the reforms in India.