INVESTMENT BEHAVIOR AND BANKING SCENARIO IN INDIA

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ABOUT THE BOOK

Savings and investment have always been an area of keen interest for decades among researchers. Savings and investments by individuals are important both for personal financial well-being and economic growth. Savings also enable further welfare-enhancing actions such as entrepreneurial activities and access to education and training. Investment is one of the most important concerns for everyone nowadays as today’s savings are used to meet the expenses of the future. At the macroeconomic level, household savings drive growth by enabling banks to lend to businesses, and by financing – directly or indirectly – investment in companies. The level of financial literacy in India is not so good therefore, there is a serious need to motivate people to save and invest their money. Many governments try to encourage their citizens to save more, or to save more appropriately, by preferring formal institutions to informal saving and by promoting more diversification. Various schemes and policies have been created by the government, financial institutions and other bodies to encourage financial literacy in India. The services that banks offer to their clients in a variety of ways determine how quickly the industry will grow. It is generally acknowledged that a sound and robust financial system is a requirement for long-term economic expansion. Over the past few years, banks in India have faced significant problems in the country’s changing environment, which is evident in the sector’s structure, size and diversity. Finance and Banking are the life blood of commerce, trading and industry. Today, the banking industry serves as the foundation of contemporary business. The performance of the banking sector is directly correlated to the growth of the economy. To provide their customers with improved services, the Indian Banking industry is going through a significant transition.