History of Banking in India - According to Prof. MS. Chhikara, "Banking Sector, managing the demand and supply functions of money, plays a significant role for promoting a healthy, balanced and sustainable development of a country. It is considered as the most important segment responsible for accelerating as well as slowing down the national and global economies. Movements in this sector have almost one to one relationship with the growth of an economy.

A strong financial and banking sector provides the necessary support to the economic system to function effectively and vice versa, so, a sound, systematic and dynamic banking system occupies a pivotal position in the economies world over and supports them to emerge as business leaders.