PESTEL Analysis Of Retail Banking In India P- Political Factor Political factor include government policies relating to the industries,

tax policies, laws and regulations, trade restrictions and tariffs etc Government policies will determine the transaction area and limitation of services provided by the retail banking available in nation. It may be benefited for the existing service provider or may be a threat for the existing or new comer in concern area. Tax policies will affect the in both positive or negative way. At the time of liberal economic policy, the attractive tax policy will encourage where as the repulsive tax policy will de motivate the service provider to provide the service in retail banking sector. The laws and regulations of government play a vital role to attract more and more service provider in retail banking sector. The laws and regulation is always depend upon the economic situation of the country. For example at the time of inflation the government increase the bank rate through which the overall banking financial structure will be affected. The purchasing power of a individual will decrease with a heavy interest rate and over all impact can be seen through the retail banking. This condition may be favourable if the government policies will be in the favour of service provider. To control the monetary flow and service area in retail banking sector government often release special policy. Trade restriction mechanism is adopted to control the competitive environment in market. For example Recently government offer a notice for the new comer in banking sector must have a initial security capital of 1000 crore to get a licence in Retail banking sector. The economical factor relate to changes i the wider economy such as economic growth, interest rate, exchange rate and inflation rate.etc Social factor often looks at the cultural aspects and include health consciousness, population growth rate, age distribution, changes i tastes and buying patterns etc The technological factor ralate to the application of new inventions and ideas such as R & D activity, automation, Technology incentives and the rate of technological chane. The Legal environment consists of laws, government agencies, and pressure groups that influence and limit various

E- Economical Factor S- Social factor

TETechnological factors L- Legal Factor

organizations and individuals. Sometimes these laws also create new opportunities for business. And some time it create a threat for the new comer. Government agencies like RBI , BSE, NSE, Ministry of Finance, SEBI regulate the financial institution along with retail banking sector to control the financial sector. RBI issues policy and plan to control and to expand the financial flow in side the country. BSE & NSE will issues the policy for the investment market to collect the capital from national and international market. SEBI have an right to design best policy for the existing and new comer in financial sector as well as other sector to regulate them. And Ministry of finance have an authority to control all the above agencies to control the banking sector monitory flow for the best result on nation. For example RBI have increased the Bank rate, SEBI issued a policy to introduce new retail banking sector with a minimum security capital of Rs. 1000 crore, Finance ministry decide to give 49% FII in insurance sector.