The Service sector of India has been growing at an annual rate of growth of about 28% during the last 5 years. Banking system became one in every of the fastest growing sectors after the primary phase economic reforms of 1991. The banking sector has played an important role in the overall economic development of the country right from the time of nationalization. Hence it's important to own a full stress on Financial Reporting System of Banks. Qualitative characteristics are the attributes that provide the data provided in the financial statements useful for various decision makers. The data must be useful in the formulation of objectives, the making of selections or the direction and control of resources to accomplish the objectives. The utility of data lies in its ability to scale back the uncertainty about the particular state of affairs of a company to the choice makers. Banks should consider many factors to supply a top quality of economic reporting information. Thus specializing in the National and International accounting principle (IAS), International Financial Reporting Standard (IFRS), General Accepted Accounting Principles (GAAP), factors of quality of the Accounting system (AIS), are important for financial reporting information. Quality of economic reporting information can help the managers of the general public and personal banks in India to acknowledge the strong and weak points of the banking operation and its status. This research study focuses on qualitative characteristics using financial reporting information publicly sector banks and it's comparing with private sector banks to search out the amount of economic reporting information gap. This research work won't only increase the standard of financial reporting information in Indian banks but also supporting to extend global market share of Indian banks by ensuring more accuracy and transparences in financial reporting information.               

Keywords: Financial Reporting, Accounting Principles, Economic Development, Banking System.