"The banking sector is set to undergo great changes in the next few years. We are going to have a whole set of new institutions, payments banks, small finance banks, and we are going to possibly have postal bank. The existing institutions are going to change tremendously. Public sector banks are going to be a tremendous change agent," Rajan said.

The governor, who was addressing the students of National Institute of Bank Management on its 11th convocation, also said the change will be witnessed mostly in the social banking. "Most banks will do work with the social sector because that is where new business is to be obtained."

Rajan also said that "between these banks there are so many different opportunities that are going to arise, for example the derivatives markets are going to be much more vibrant".

"Information technology used by the banks, by the banking correspondents and the clients is going to be made different from what it was in the past," Rajan said, adding "but there will be many opportunities outside of the derivatives and the IT sector."

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