Foreign Direct Investment in Indian Banking Sector: Trends, Opportunities and Impact

In the rapidly changing economic environment, Foreign Direct Investment (FDI) is used as the stimulus for growth in the most of developing countries including India. Globalization has engulfed all the sectors into its fold, out of which the banking sector is a crucial one. FDI in Indian banking sector has a lot of opportunities as well as challenges. This Paper explores the opportunities for FDI in Indian banking sector and highlights its various forms of presence in India. It further investigates the trends in FDI into Indian banking sector and attempts to reckon the impact of presence of foreign banks on Indian domestic banks. The study also throws light on RBI's amendments and recent foreign policy with respect to FDI in India.