“Retail banking” is usually made available by commercial banks, as well as smaller community banks. Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit cards, credit cards and so forth. Retail banking is that part of bank's operations providing services at its branches for small account holders. The term ‘Retail Banking' encompasses various financial products viz., different types of deposit accounts, housing, consumer, auto and other types of loan accounts, Demat facilities, insurance, Mutual funds, Credit and Debit Cards, ATM and other technology-based services, stock-broking, payment of utility bills, reservation of railway tickets, etc., catering to diverse customer groups, offering a host of financial services, mostly to individuals. It takes care of the diverse banking needs of an individual. The prospects of retail banking system in India are Customer focus, Segment focus, Product focus, Employee focus, Quality service and Quickness in delivery, Introduction of new delivery channels, Detail market research, Business process out-sourcing, Tie-up arrangements, Strong credit assessment Capability, Sound documentation, Regular constant follow- up, Skilled human resource, Technological support Etc., challenges of retailing banking in India are Generation Next segment, Rural segment ,Cross selling and up selling , Housing loan has large potential, Brand building, Product innovation and renovation, Educational Loan, IPO Loans, Bancassurance, RBI is repeatedly cautioning banks to exercise due diligence, 'People with right soft skill' ,PDC management, Consumer credit and fair practices code, Sale of impaired assets, Travel Loan or Holiday loan, “Entrprenuership development”: unemployment, Women Entrepreneurship, Industrial development Etc., suggestions for effective functioning of retailing banking in India is to enlist the "unbanked" segment of the society by the service providers, create customer-specific products. Banker in the role of a Financial Engineer, minimum deposit requirement for opening new accounts, Allow the earlier facilities to sink into the culture of the customers. It concludes that the true challenge for the banks in the current scenario is to stand out in the midst of hard-hitting regulations of the apex body. Globalization, consolidation and want of expertise are drastically redefining the banking taxonomy. It is a great challenge for the banks. Managing service quality warrants a perfect understanding of customer need, designing products which customer appreciates, developing and monitoring the process that delivers the service or product, training sales people and measuring customer satisfaction. This is possible only when day-to-day experiences are critically analyzed and products and policies are aligned to market demand.
