The financial system is the lifeline of the economy. The changes in the economy get mirrored in the performance of financial system, more so of the banking industry. In this context, financial sector reforms set in motion in 1991 have greatly changed the face of Indian banking. The banking industry has moved gradually from a regulated environment to a deregulated market economy. Liberalization and globalization have resulted in complete transformation of Indian banking environment where technology play an important role for these significant changes. While the banking system has done well in adjusting to the new market dynamics, greater challenges lie ahead. Financial sector is opened up for greater international competition under WTO, Basel II and Free Trade Agreement etc. Banks have to cope with challenges posed by technological innovations in banking and hence banks need to prepare for changes.

Now the Indian banking system is facing pressure of global competition for which market players will have to be financially strong and operationally efficient while capital is the key factor in building a successful institution. Technology of is another factor of competitiveness where all the functions are performed electronically. In the context of these challenges, banking system will have to improve competitiveness through a process of consolidation, advanced technology, customer-oriented business etc. through strategic alliance.

Hence, the new vision for Indian banking system is to make it market driven, productive, innovative and highly competitive. For this purpose, we need a financial system, which is inherently strong, functionally diverse, and displays efficient and flexibility. The banking system is the most dominant segment of the financial sector, accounting for as it does, over 80 pc of the funds flowing through the financial sector. Therefore, it is desired to make the banking system highly competitive in the global market.

In this Conference, it should be our endeavor to develop strategies for resilient, competitive and dynamic financial system with best practices that supports and contributes positively to the growth of Indian banking system. Here, experts from different parts of the country will be invited to for panel discussion and to make some effective strategies for the same. The objective of the conference is to visualize the present Indian banking system and make it financially strong, viable, and innovative and highly competitiveness in the global era. A new vision will explore new opportunities for Indian banking and our banks may become strong to face the global competition.