Banking plays a pivotal role in the development of any nation. It channelizes funds for the development and growth of a nation.  The Indian Banking System is regulated by the Reserve Bank of India similar to the Bank of England’s role in the United Kingdom. Indian Banking System consists of central, commercial, cooperative, and development banks. Public sector banks in India Contribute to about 75% of the total deposits and about 70% of the total advances of all commercial banks in India. The role of public sector banks in India is larger as compared to private sector banks because the state-run banks are better at financial inclusion, cost efficiency, and guaranteed support during a crisis, which is different in the case of the United Kingdom. Private banks in the country have strong, robust, systemic systems and offer specialized services to their customers than public banks. The UK is a capitalistic economy where private players are given considerably more freedom to operate, whereas India aims to move. The UK also enjoys more FDI because of the strong consumer purchasing power. Hence we see better private participation in this sector in the UK. UK banking consists of the central bank, private banks, and housing societies. There are 344 banks and 52 building societies in the UK compared to 27 public banks and 21 scheduled banks in India. The UK banking system is more e U.K. is globally systemic, open, and complex because of decentralized market share, global investment, and the size of the economy. Impressively India accounts for a greater amount of online transactions as compared to the UK, being a developed country. This is explained by wang’s trifecta- cheap bandwidth, a smartphone in every pocket, and a frictionless payment system. However, housing societies stand to be a unique feature in the financial system of the UK. Housing societies first appeared in the second half of the nineteenth century as part of the growth in philanthropic and voluntary organizations brought about by the growth of the middle classes in the wake of the Industrial Revolution.

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Keywords: Indian Banking System, RBI, FDI, Industrial Revolution, Public Sector Banks.