Foreign Direct Investment in Banking Sector

India has been an important recipient of Foreign Direct Investment and it also plays an important role in the development of a country. Amongst all the sectors Indian Banking Sector is the primary one that is attracting most of the Foreign Direct Investment inflows and using it for the competitive efficiency. After Economic Reforms 1991, Indian Banking Sector got major benefits due to opening up of doors of the world either in terms of innovative technology, liberal policies, employment opportunities, access to managerial capabilities, making industry internationally competitiveness. This paper attempts to discuss the FDI equity inflows in Service Sector in India, its impact in Indian Economy and also highlights the future prospects and investments development that is being undertaking place in the Banking Sector.