Impact of technology on banking

Nothing stands out in the world of banking and finance. The biggest change of all is in the scope of the banking business. Its traditional banking interest is in accepting deposits from customers, lending the surplus money deposited to suitable customers who want to borrow, and sending funds. Apart from traditional business, banks now offer a wide range of services to cater to the financial and non-financial needs of all types of customers, from small account holders to large companies and in some cases non-customers. The range of services offered varies from bank to bank, mainly depending on the type and size of the bank.

Initial initiatives of the Reserve Bank
As the central bank in the developing world, the Reserve Bank of India (RBI) has adopted bank and financial market development as one of its main objectives. The hallmark of this approach from the 1950s to the 1970s was the “organizational development”. In the 1980s, the Reserve Bank focused on the “improvement in output” of the banking sector. Believing that technology was important for improving productivity, the Reserve Bank took several initiatives to popularize the use of technology by banks in India.

From time to time almost every five years from the early 1980s onwards, the Reserve Bank appointed committees and working groups to consult and recommend the use of technology as and when required. These groups include:
-Rangarajan Committee-1 In the early 1980s.
-Rangarajan Committee -Late 1980s.
-1Saraf Task Force in the early 1990s.
Vasudevan Working Group in the late 1990s.
Barman Working Group in the early 2000s.

Based on the recommendations of these committees and working groups, the Reserve Bank has issued appropriate guidelines to banks. In the 1980s, the application of technology to the back office operations of banks dominated the scene. It was in the form of accounting and MIS collection of transactions. In inter-bank payment systems, MICR was in settlement and settlement form using technology.

Two important decisions of the Reserve Bank in the 1990s always changed the situation:
a) Recommendation for the full use of technology by the new private sector banks as a precondition for licensing and
b) Establishment of a specialized research institute for the Banking Technology Institute for Banking Technology Development and Research.

The protest effect on the restructuring of the banks was compounded by the fact that the new private sector banks came on the scene as technology-savvy banks and offered many innovative products in front of the customers in the office based on technology. Many channel offers like machine based (ATMs and pc-banking), card based (credit / debit / smart cards), telecommunication based (tele-banking and internet banking) are provided by banks in India anytime and anywhere. IDRBT has been instrumental in establishing a secure and secure, modern communication backbone from the Indian Financial Network (INFINET) as a closed user group exclusively for the banking and finance sector in India.

Changing the face of banking services
Liberalization brought about many changes in the Indian service sector. Probably the Indian banking sector has learned a tremendous lesson. Before liberalization, all we did in the bank was deposit and withdraw money. The service standards are pathetic, but all we can do is bear it with a smile. After liberalization, the tables have changed. It’s a consumer market there.

Technology is revolutionizing every field of human endeavor and process. One of them is the introduction of information technology in the capital market. Internet banking is transforming the banking sector and having a huge impact on the banking relationship. The Internet is more important to retail financial services than many businesses.

The retail bank in India is maturing over time, with many products, and can be customized. The most frequent sector is home loan, which sees a cut-throat competition. Home loans are very popular as they help to make your most cherished dream come true. Interest rates are falling and the market has seen some innovative products. Other retail banking products include personal loans, education loans and auto loans. Almost every bank and financial institution offers these products, but it is important to understand the different features of these credit products that are not mentioned in their colorful advertisements.

Plastic money
Plastic money is a delicious gift to the Indian market. Retires from carrying too much money. Now many new features have been added to make plastic money more attractive. It works on Formula Purchase, Refund Now. Different facts about plastic money Credit card is all the same.

A credit card is a financial instrument that can be used more than once to borrow money or to purchase goods and services on credit. Banks, retail stores and other businesses usually publish these. Depending on their credit range, they come in a variety of sizes, including classic, gold or silver.

Charged Cards – These have the same features as credit cards. The basic difference is that you can not defer fees that are usually charged with higher credit limits or sometimes without credit limits.
Debit Cards – This card can be classified as the account holder’s mobile ATM, for which you need to have an account with any bank that offers credit cards.

For many years, the banking sector in India was a number one. changes. Most of the banks have started taking an innovative approach towards the bank with the aim of creating more value to the customers and as a result the banks. Some significant changes in the banking sector are discussed below.

Mobile banking
Taking advantage of the growing market for mobile phones and cellular services, many banks have introduced mobile banking, which allows customers to make banking transactions using their mobile phones. HDFC, for example, has introduced SMS services. Mobile banking is especially targeted at frequent travelers and individuals tracking their banking transactions.

Rural Bank
Kisan Credit Card (KCC) SCHMME, launched by NABARD in the financial year 1998-1999, is one of the innovative schemes launched in rural banks. The KCC mode makes it easy for builders to purchase critical agricultural inputs. In addition to regular farm loans, banks provide a wide range of products to meet the needs of the rural population.

Private sector banks have also realized the potential of the rural market. In the early 2000s, ICICI Bank began setting up Internet kiosks in rural Tamil Nadu with ATMs.

NRI Services
As a significant number of Indians have relatives abroad, banks have started offering the convenience of sending money to expatriate Indians to their relatives, which is one of the major developments in money transfer.

E-Banking
E-banking is gaining popularity among retail bank customers. E-Banking helps to reduce costs by providing cheaper and faster ways to deliver goods to customers. It also helps to choose the time, place and method by which the customer wants to use the services and the effect of the bank’s multi-channel delivery. This e-bank is powered by a dual machine called “Customer-Bull and Bank-Bush”.

Conclusion
Technology is one of the most important factors for the development of mankind. Information and communication technology is a major advancement in the field of technology, which is used to access, process, store and disseminate information electronically. The banking sector is growing rapidly using technology in ATMs, online banking, telephone banking, mobile banking, etc. The plastic card is one of the banking products that caters to the needs of the retail segment. In the progress of geometry in recent years. This development is strongly supported by the development of the technology sector, without which it would not be possible and of course it will change our way of life in the years to come.

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