Progress of Banking in India

Topics: Bank, Online banking, Credit card Pages: 22 (5461 words) Published: February 2, 2013

Associatet Professor Department of Business Administration Sanskriti School of Business, Vadodara(Gujrat) Email:

Business Intelligence Journal


Dr. Komal

Assistant Professor Department of Humanities JMIT Radaur

Dr. Vandna Rani

The present paper is concerned with the various ways of doing banking electronically. This paper has been divided into four sections dealing with four aspects of E-banking i.e. ATM, Internet banking , Mobile banking and Credit cards. Paper is basically concerned with the customer aspect of banking searching for customer satisfaction level. This is a comparative study of Public sector bankis, Private sector Indian banks and Private sector foreign banks. Key words: E_Banking, ATM, Internet banking, Credit cards, Mobile banking, Traditional banking, Credit frauds, Security, Competition, Customer satisfaction etc.

Banking has come a long way from the time of ledger cards and other manual filing systems. Most of the banks today have electronic systems to handle their daily voluminous tasks of information retrieval, storage and processing. Irrespective of whether they are automated or not, banks by their nature are continually involved in all forms of information management on a continuous basis. The computer is, of course, an established tool for achieving a competitive edge and optimal resource allocation. Competition and the constant changes in technology and lifestyles have changed the face of banking. Nowadays, banks are seeking alternative ways to provide and differentiate amongst their varied services. Customers, both corporate as well as retail, are no longer willing to queue in banks, or wait on the phone, for the most basic of services. They demand and expect to be able to transact their financial dealings where and when they wish to. With the number of computers increasing every year, the electronic delivery of banking services is becoming the ideal way for the banks to meet their clients’ expectations. E-banking refers to the effective deployment of IT by the banks. It is about using the infrastructure of the digital age to create opportunities - both local and global. It enables the dramatic lowering of transaction costs and the

creation of new types of banking opportunities that address the barriers of time and distance. Banking opportunities are local, global and immediate in e-banking. The current webbased variant of banking is the latest of several generations of systems: ATM was the first well-known machines to provide electronic access to customers of retail banks. With advent of ATM, banks are able to serve customers outside the banking hall. Next came phone banking where users call their bank’s computer system on their ordinary phone and use the phone keypad to perform banking transactions. PC banking superseded phone banking and allowed users to interact with their bank by means of a computer with a dialup modem connection to the phone network. PSBs, which are the foundation of the Indian banking system, account for more than 78 per cent of the assets of total banking industry. Unfortunately, they are burdened with excessive NPAs, massive manpower and lack of modern technology. On the other hand, the PSIBs and PSFBs in India are witnessing immense progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. Given this background, it is interesting to analyze the e-banking scenario in India. In a quest to seek an answer, the present study is undertaken with specific research objectives as envisaged in the following section.

Business Intelligence Journal - January, 2012 Vol.5 No.1


Dr. Komal, Dr. Vandna Rani


Objectives of the Study
The present study aims to examine the progress of e-banking in India. In this broader framework, an attempt is made to achieve the following specific objectives: • To analyze the present...
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