The paper discusses the emergence of ‘relationship marketing approach’ and highlights its importance in today’s highly competitive world with special reference to financial services sector. The thoughts of various management thinkers on relationship marketing approach have been also incorporated along with the recent attempts to create a platform for the execution of Relationship Marketing Philosophy in Indian financial services. The present paper also enlists some of the challenges that a modern marketer has to face in its path to implementing relationship marketing in financial service industry. Relationship Marketing is not about implementing better technology; it is about building the process that fosters longer, more profitable customer relationships. Various relationship building tools and programs have been also highlighted to provide an overview of the execution of this philosophy in the financial services sector.