Universal banking in india opportunities & challenges

Economic historians have long emphasized the importance of financial institutions in industrialization. More recently, economists have begun more intensive investigation of the links between financial system structure and real economic outcomes. In theory, the organization of financial institutions partly determines the extent of competition among financial intermediaries, the quantity of financial capital drawn into the financial system, and the distribution of that capital to ultimate uses. The choice between universal and specialized banking may affect interest rates, underwriting costs, and the efficiency of secondary markets in securities. The present paper aims to enumerate and rank the opportunities in the Universal Banking in India in financial and marketing sphere. Further, efforts have been made to highlight and rank the challenges of Universal Banking in India.