The services sector has become a major player in the economy, making up over 60% of GDP in developed countries. In India, the service sector has surpassed agriculture and industry in contributing to the economy. This shift has led to a significant increase in employment in the service sector. The study focused on the role of the service sector in economic development, particularly in the banking industry, which is a key player in the services sector. The researchers used secondary data from various sources to analyze the impact of the service sector on GDP and employment rates.