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The paradigm shift is taking place in delivering banking services by the bankers in the 21st century to its
customers. Due to globalization, it becomes mandatory to all bankers to adhere the Corporate Governance
in accordance with the amended Act. Enhancing the investor’s confidence and encouraging competition
among the banking industry is must in the recent years. Banking industries are coming under the direct
scrutiny of the Reserve Bank of India. Hence, all the banking organizations have to comply with the
regulatory requirements, apart from meeting the local community needs. Due to heavy inflow of foreign
direct investment (FDI) from across the world, it become necessary to all the banks have to adhere the
Corporate Governance strictly as per prevalence of law. A good Corporate Governance mechanism
improves the health of the banking sector, thus enhancing national competitiveness.