India has a strong and vivid banking region comprising state-owned banks, personal zone banks, foreign banks, monetary establishments and regional banks which consist of cooperative banks, rural banks and local neighborhood banks, In addition there are non-banking financial organizations (NBFCs), housing finance companies, Nidhi companies and chit fund firms which play the function of financial Intermediaries. Since the launch of the economic liberalization and international programmer in 1991, India has significantly comfy banking policies and opened the financial location for distant places investment. India additionally committed to similarly open the banking vicinity for overseas funding in pursuance to its dedication to the World Trade Organization (WTO) As financial authority of the country, the Reserve Bank of India (RBI) regulates the banking industry and lays down suggestions for every day functioning of banks inside the average framework of the banking Regulation Act, 1949, Foreign Exchange Management Act, 1999 and Foreign Direct Investment (FDI) policy of The government u .s .a .owned banks.