The term innovation means”to make something new”. Banks no longer restricted themselves to traditional banking activities but explored newer avenues to increase business and capture new market.
INDIAN BANKING SECTOR
From 1806 qualitative & quantitative changes have been taken place. With 1935 regulation RBI was proclaimed as central bank of India. In 1990’s greater emphasis was placed on technology & innovation. New concepts like personal banking, retail banking, total branch automation etc were introduced.
INNOVATIONS IN INDIAN BANKING SECTOR
TYPES OF INNOVATIVE BANKING
Enables people to carry out most of their banking transactions using a safe website which is operated by the respected bank
Faster & more convenient transaction
No longer required waiting in long queues
Opening of account simple & easy
Apply for bank loan
Cost effective for banker side
Fund transfer become faster & convenient
Stock trading, exchanging bonds & other investment
2. CORE BANKING
Depositing and lending of money
Core banking solution
Knowing customers needs
2. CORPORATE BANKING
Financial services to large corporate & MNCs
Domestic and international payments
Letters of guarantee
Working capital facility for domestic & international trade
4. INVESTMENT BANKING
Creating funds and wealth of clients
Fund creating in two ways:
M & A’s
Professional sales person providing advice on stock trading
5. RURAL BANKING
It provides & regulates credit services for the promotion & development of rural sector mainly agriculture, SSI, cottage and village industries, handicrafts and many more.
Examples Of Regional Rural Banks are NABARD, HARYANA STATE COPERATIVEAPEX BANK LIMITED, SYNDICATE BANK, UNITED BANK OF INDIA
6. NRI BANKING... [continues]
Cite This Essay
(2011, 03). Innovations in Banking Sector. StudyMode.com. Retrieved 03, 2011, from http://www.studymode.com/essays/Innovations-In-Banking-Sector-611418.html
"Innovations in Banking Sector" StudyMode.com. 03 2011. 2011. 03 2011 <http://www.studymode.com/essays/Innovations-In-Banking-Sector-611418.html>.
- MLA 7
"Innovations in Banking Sector." StudyMode.com. StudyMode.com, 03 2011. Web. 03 2011. <http://www.studymode.com/essays/Innovations-In-Banking-Sector-611418.html>.
"Innovations in Banking Sector." StudyMode.com. 03, 2011. Accessed 03, 2011. http://www.studymode.com/essays/Innovations-In-Banking-Sector-611418.html.