Preview

Internet Banking in India

Powerful Essays
Open Document
Open Document
2009 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Internet Banking in India
NTERNET BANKING IN INDIA: A GLIMPSE OF ITS
ADOPTION AND IMPLEMENTATION IN INDIA

REFERENCE:
Author: Sonal Chawla
Lecturer, Dept. of computer science and Applications
Punjab University, Chandigarh india

INTRODUCTION

The banking sector in India has undergone a rapid transformation. Almost a decade ago this area was limited to nationalized banks and cooperative. Then came the multinational banks, but were these limited to serve small elite. One could consider the past as the "Middle Ages" in the banking sector, in which each branch of the same bank acted as independent information silo and multichannel banking (ATMs, Net Banking, tele-banking, etc) was almost nonexistent. The main reason for this first transformation is due to improved methods developed encryption security and Internet. The second reason is that banks do not want to lose a potential market share for banks that are quick to offer their Internet services.

OBJECTIVE

The objective of this research is just comparing the modern era banking system with the old one.
EVOLUTION OF MODERN BANKING
The evolution of modern banking technology began with the use of advanced machines shipping Ledger (ALPM) in the 1980s. The Reserve Bank of India, which is a central policy under which several public sector banks, financial institutions, NBFCs etc. working in India had advised then all banks to go massive computerization branch level. Two options were raised i.e. either to automate the front office or office. Many banks opted for ALPM office automation in the first phase. Banks as State Bank of India, a public sector commercial bank, focused on automating back office in branch level. The Rangarajan Committee 1985 report said the banks had to get computerized.
The second wave of development called for Total Bank Automation (TBA) in late 1980. This automated both the front-end and back-end operations within the same branch. TBA compound total automation of a particular branch with its own database. In

You May Also Find These Documents Helpful

  • Good Essays

    Indian Banking system has not only made rapid strides in net work expansion but it itself has undergone a complete and never-dreamt of transformation in its very avowed objectives, approaches, and scale of operations. Technology has indeed played a significant role in this seachange. Nationalisation of banks in two spells in 1969 and 1980 was a watershed in the annals ofbanking sector in India. Banks were required to saunter along a new path untrodden so long. Instead of remaining as mere mobilisers of deposits and purveyors of credit, they began to be used as catalysts for bringing about socio- economic transformation of our country- a goal considered hitherto to be outside the banking arena.…

    • 806 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Yippi

    • 14358 Words
    • 58 Pages

    Indian banking is the lifeline of the nation and its people. Banking has helped in developing the vital sectors of the economy and usher in a new dawn of progress on the Indian horizon. The sector has translated the hopes and aspirations of millions of people into reality. But to do so, it has had to control miles and miles of difficult terrain, suffer the indignities of foreign rule and the pangs of partition. Today, Indian banks can confidently compete with modern banks of the world. Before the 20th century, usury, or lending money at a high rate of interest, was widely prevalent in rural India. Entry of Joint stock banks and development of Cooperative movement have taken over a good deal of business from the hands of the Indian money lender, who although still exist, have lost his menacing teeth.…

    • 14358 Words
    • 58 Pages
    Good Essays
  • Powerful Essays

    Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India 's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India 's growth process.…

    • 13040 Words
    • 53 Pages
    Powerful Essays
  • Good Essays

    * Government of India (1998). Report of the Committee on Banking Sector Reforms (Chairman: Shri M.Narasimham), Government of India, New Delhi.…

    • 40587 Words
    • 163 Pages
    Good Essays
  • Good Essays

    Indian banking sector has undergone major changes and reforms during economic reforms. Though it was a part of overall economic reforms, it has changed the very functioning of Indian banks. This reform have not only influenced the productivity and efficiency of many of the Indian Banks, but has left everlasting footprints on the working of the banking sector in India.…

    • 569 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Report on Banking Sector

    • 15452 Words
    • 62 Pages

    The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian…

    • 15452 Words
    • 62 Pages
    Powerful Essays
  • Powerful Essays

    4.1 GROWTH OF BANKING SYSTEM IN INDIA : In order to understand present make up of banking sector in India and its past progress, it will be fitness of things to look at its development in a somewhat longer historical perspective. The past four decades and particularly the last two decades witnessed cataclysmic change in the face of commercial banking all over the world. Indian banking system has also followed the same trend. In over five decades since dependence, banking system in India has passed through five distinct phase, viz. (1) Evolutionary Phase (prior to 1950) (2) Foundation phase (1950-1968) (3) Expansion phase (1968-1984) (4) Consolidation phase (1984-1990) (5) Reformatory phase (since 1990) 4.1.1 EVOLUTION PHASE: (PRIOR TO 1950) Enactment of the RBI Act 1935 gave birth to scheduled banks in India, and some of these banks had already been established around 1981. The prominent among the scheduled banks is the Allahabad Bank, which was set up in 1865 with European management. The first bank which was established with Indian ownership and management was the Oudh Commercial Bank, I formed in 1881, followed by the Ajodhya Bank in 1884, the Punjab National Bank in 1894 and Nedungadi Bank in 1899. Thus, there were five Banks in existence in the 19th century. During the period 1901-1914, twelve more banks were established, prominent among which were the Bank of Baroda (1906), the Canara Bank (1906), the Indian Bank (1907), the Bank of India (1908) and the Central Bank of India (1911).…

    • 12575 Words
    • 51 Pages
    Powerful Essays
  • Good Essays

    Banks are basically service-rendering institutions. The existence and success of banks depend on their ability to meet the various needs and wants of the customers. The new millennium has brought with it challenges as well as opportunities in various fields of economic activities including banking. The banking sector in India has undergone several changes in the areas of prudential, regulatory, disclosure and supervisory norms. The financial reforms launched during the early 1990s have dramatically changed the banking scenario in the country. New prudential norms, capital adequacy prescriptions, identification of bad debts, provision requirements etc. were enforced and interest rates were deregulated. As a result of these reforms, new private sector banks were allowed entry into the market.…

    • 905 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Role of Banking in India

    • 907 Words
    • 3 Pages

    Towards the beginning of the 20 century, with the onset of modern industry in our country, the need for government-regulated banking system was felt. The British government began to pay attention towards the need for an organized banking sector in the country and the Reserve Bank of India was set up to regulate the formal banking sector in the country. Ever since they were nationalized in 1969, banks have been playing a major role in the socio-economic life of the country. The have to act not only as purveyors of credit, but also as harbingers of social and economic development through a variety of enterprises, many of which may tiny and yet capable of generating productive energies.…

    • 907 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Innovations in Banking

    • 6760 Words
    • 28 Pages

    Executive Summary Introduction Universal Banking Why Innovations in Banking? Significance of IT Innovation in the Banking Sector Impact of Banking Innovations in a Developing Economy Innovations in Indian Banking Industry – An Update About ING Vysya Bank Innovations @ ING ING Vysya Bank making a difference in Indian Banking Industry Technology in Banking Conclusion References…

    • 6760 Words
    • 28 Pages
    Powerful Essays
  • Powerful Essays

    According to Reserve bank of India’s banking review of 2011 – 2012 there was a notable pick up in demand from industry for investments and a surge in exports. Evidently, the industry’s focus now is on scaling up both domestically and in markets abroad, widening the product and services port folio, and better using technology to make banking more accessible and efficient.…

    • 1132 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Bibliography: 1. Niti Bhasin: (2007)“Banking development in India 1947 to 2007” century publication Delhi 110005…

    • 2346 Words
    • 10 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Mobile Banking

    • 367 Words
    • 2 Pages

    Page - 1 Mobile Banking (also known as M-Banking, m-banking, SMS Banking, etc.) is a term used for performing balance checks, account transactions, payments, etc., via a mobile device such as a mobile phone. It was Internet Banking, which ushered in a new era in banking convenience by bringing the entire operations to the computer, and now mobile banking promises to take it to the next level. Internet Banking helped give the customers anytime access to their banks. Customers could check out their account details, perform transactions like transferring money to other accounts, and pay their bills, sitting in the comfort of their homes and offices. However, the biggest limitation of Internet Banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like India and China. Mobile Banking addresses this fundamental limitation of Internet Banking, as it reduces the customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the Asian economies like India, China and Korea. The main reason that Mobile Banking scores over Internet Banking is that it enables 'Anywhere Anytime Banking'. According to Cellular Operators Association of India (COAI), the mobile subscribers' base in India hit 40.6 Million in August 2004, and it will be almost 80 Million in 2008, i.e., nearly double. We all expect 2009 set to be a big year for Mobile Banking. After a slow start at the turn of the millennium, it would seem this time around, that the devices, the networks, and the users have finally started using "Mobile Banking". The majority of the Indian banks, whether nationalized bank or privatized, are already involved in offering mobile services to their customers. Several banks have even tied-up with mobile phone operators and service providers to carry out transactions on mobile phones. While…

    • 367 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India 's banking system has several outstanding achievements to its credit. The most…

    • 7951 Words
    • 32 Pages
    Powerful Essays
  • Good Essays

    For the past three decades India’s banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has even reached to the remote corners of the country. This is one of the main reasons of India’s progress.…

    • 1119 Words
    • 5 Pages
    Good Essays

Related Topics