Many changes have been found in Indian Banking over long period of the time after the Reserve Bank of India got established in 1935. Before the creation of Reserve Bank of India, The Imperial Bank of India looked after the functions of it. All India Rural Credit Survey Committee gave its report giving the recommendations for creating the integrated, state partnered, strong, state sponsored commercial banking institution with the machinery that is effective and is spread all over India. Then comes the another phase of banking that is social banking which was undertaken during 1966 as private banks were not providing required help in form of unorganized sector. Each leading sector at that time in India was closely related with promotion.

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Universal banking allows the banks to do all the kind of banking activities according to the rules and regulations of the RBI and other legal acts of the government. It includes the deposits, withdrawals, granting of loans, credit cards, project financing, payment systems, foreign exchange operation, remittances, project counseling, insurance, merchant banking etc. the main aim of universal banking is to bring equality in banking system, to give world class services related to the finance with the help of information and technology of the modern society, competing with international banks by exploring the business beyond the countries’ boundaries. The concept of universal banking was recommended by R H Khan Committee. Reserve Bank of India issued guidelines on universal banking in April 2001.

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The connection between the degree of banking stability and the evolution of inflation is very important to be understood in order to evaluate the relation between banking stability and real output growth. We can adopt the VAR method for the sample of 18 OECD countries to find out the balance between both factors. The results can be proved effective if they are driven in instable period instead of stable periods. It is also observed through various surveys that unstable banking increases the imbalance in output growth of future. Hence it can be concluded that there is no clear connection between banking stability and the real output growth. However this connection can be used to increase real output growth. By the help of Fed forecast errors, banking stability as well as instability put impact on GDP growth in few quarters. In the last period the private sector has taken a large share in complete foreign currency international debt.

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The marketing as a whole and also in day to day life is supported by the various types of the indicators and these ease the life of an individual or as a whole to a great deal. There are several type of the indicators and some of these have been found to be indicating towards the economic slow down and there are some other that indicate towards the fastening of the economy. Those who had weathered the era of the de monetisation and the disruption caused in the individuals lives as alone or as a group, and now further facing Goods and the service tax (GST), induced trauma in just a few months and now the future looks very un certain. The Indian economy looks to be in a peculiar limbo, several indicators that have been taken together point that the economy is in the grip of the slow down in the present scenario that is existent in India. While on the other hand, the current GDP data and the forecasts point to the robust growth now and the forthcoming. With the coming up of the GST, the MSMEs have been hit the maximum as the business men in the micro, small and the medium enterprises deal mostly in the cash and also maintain rudimentary accounts and as a result of this, they have been hit the most. First, the down side, number crunching by the business standard indicates that the bank loans grew by a mere 1.7 percent in the last financial year (2016-2017), the lowest in over the two decades (sine 1995-1996). The port folio of the loan of the public sector banks, which account for over the 70 percent of the assets of the banking sector, actually contracted by the 2.5 percent. Such severe slow down in the banks lending is symptomatic of an over all economic slow down. If there is an economic slow down, then for sure it will indicate it self by the falling inflation and all this can be seen precisely as to what has happened. The consumer price index for June 2017, compared to an year ago was up by a mere 1.5 percent. This result was below the expectation and way below the expectations and below the reserve bank of India medium term target of the 4 percent. So the economy should be dragging its feet hardly. The IMF has retained its earlier forecast that the Indian economy will grow by a robust 7.2 percent in the current financial year and then will gradually rise to a formidable 7.7 percent in the neat year of the 2018 – 2019 and one thing that one needs to appreciate here is that in both of these scenarios, the growth of the India will remain higher than that of the republic of the China.

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The various studies and the various facts that come out by the various public and the private firms and the organizations of the world like the International Monetary Fund (IMF), World Trade Organization (WTO) and many more, reveal that the country like India who is found to be growing very fast on the development map of the world has started spending a lot more on the marketing and the promotion of the agriculture than before as Indian is mainly on the world map said to be an agrarian economy. But also with this it has also been observed that the spending required for the infra structure required for this purpose is declining day by day and fast and critical decisions need to be made in this regard other wise things that are being done in this regard will not be able to get the desired results. All these type of the observations that are made by the WTO and the IMF are based basically on the comparisons of a large no of the factors in the various types of the streams. In this regard, the clarifications given by the IMF and the WTO suggest that compared to the United States, the European union and the even the republic of china suggest that the agriculture of the India is very much weaker than these type of the developed countries.

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