Technology's impact on banking activity

There is nothing in the banking and financial world. The biggest change belongs to banking. Traditional banking activities deal with accepting deposits from customers, dealing with overdrafts with customers who want to borrow money and transfer money. In addition to traditional business, banks today offer a wide range of services to meet the financial and non-financial needs of all types of clients from the smallest account holders to the largest companies and, in some cases, non-clients. Depending on the type and size of the bank, the range of services showed a distinction between banks.

As a central bank in a developing country, the Reserve Bank of India (RBI) considered the development of the banking and financial markets as its primary goals. "Institutional development" was a concept from the 1950s to the 1970s. In the 1980s, the Reserve Bank focused on improving the "productivity of the banking sector". With the conviction that technology is the key to improving productivity, the Reserve Bank has launched a number of initiatives to promote the use of technology for Indian banks.

The Reserve Bank appointed from time to time, from the beginning of the 1980's, almost five years ago, committees and working groups to decide and recommend banks to use technology appropriately to provide conditions and needs. These committees are:
-Rangaraj Committee1 in the early 1980s.
-Langarajan Committee -11 at the end of the 1980s.
-Saraf working group in the early 1990s.
-Vasudevan working group at the end of the 1990s.
-Barman working group in the early 2000s.

Based on the recommendations of these committees and working groups, the Reserve Bank has issued viable guidelines to banks. In the 1980s, the technology of back office operations of banks is dominance. This was in the form of accounting transactions and the collection of MIS. In the interbank payment systems, it was implemented in the form of clearing and settlement using MICR technology.

In the 1990s, two prominent decisions by the Reserve Bank changed the scenario:
(a) Mandatory use of technology fully with new private sector banks as a prerequisite for authorization and
(b) Banking Technology Development and Research Banking Technology institute's exclusive research institute.

As the new private sector banks emerged as technologically well-known banks and provided innovative products for technology-based clients in the front office, the demonstration impact on banks' recovery. Banks launched at any time and anywhere banking services (ATM and PC-Banking), card-based (credit / debit / smart cards), communications-based (Tele-Banking and Internet Banking). IDRBT has been launched as a closed user group for India's banking and financial sector as the creation of secure and secure modern communications backbones of the Indian Financial Network (INFINET).

Liberalization has made a number of changes to the Indian service industry. Probably the Indian banking sector has learned a huge lesson. Pre-liberalization, all we did at a bank was a deposit and a withdrawal. Service standards were pitiful but just grinned and worn. After the liberalization, the tables turned around. It's a consumer market.

Technology revolutionizes all areas of human endeavors and activities. One is the introduction of information technology on the capital market. Internet banking changes the banking sector and has a strong impact on banking. The web is more important in retail financial services than in many other industries.

Retail banking in India comes with time, more products that can be further customized. Most of the events are home loans, which is a shambling contest. Housing loans are very popular as they help to realize the most desirable dream. Interest rates are declining and the market has some innovative products. Other retail banking products are personal loans, educational loans and motor vehicle loans. Almost every bank and financial institution offers these products, but it is imperative to understand the various aspects of credit products that are not included in your color ads.

Plastic money promised to the Indian market. She answers too much cash. Now, with many new features, plastic money has been added to make it more attractive. You have to repay the formula now. There are various facts about plastic money credit card synonyms for everyone.

Credit card is a financial asset that can be used more often to borrow money or buy products and services. Banks, retail stores and other businesses generally issue it. They are different on their credit lines, such as classic, gold or silver.

Stuffed cards – they have almost the same features as credit cards. The basic difference is that you can not postpone your payments in general with higher credit lines, or sometimes there is no credit limit.
Debit Cards – this card can be the account manager's mobile ATM as this requires a bank with a credit card.

Over the years, the Indian banking sector is a no. about the changes. Most banks have begun adopting an innovative approach to banking customers with the aim of creating more value for customers and thus for banks. Some of the major changes in the banking sector are discussed below.

Utilizing the benefits of the booming market for mobile phones and mobile services, several banks have introduced mobile banking services that enable customers to carry out bank transactions via their mobile phone. For example, HDFC has introduced SMS services. Mobile banking was directed specifically to people who traveled frequently and track their bank transactions.

One of the innovative systems to be launched in the rural banking sector was the KISAN CREDIT CARD (KCC) SCHMME, which began in NABARD 1998-1999. In KCC mode, it is easier to obtain inputs for agricultural inputs. In addition to regular agricultural loans, banks offer many other products tailored to the needs of the rural people.

Private Sector Banks have also recognized the potential of the rural market. At the beginning of 2000, the ICICI Bank launched the establishment of Internet kiosks in Tamilnadu, India, along with ATM machines.

Thanks to the number of indigenous foreign relatives, the banks have begun providing services that allow foreign Indians to send more convenient money to relatives, which is one of the biggest improvements in money transfer.

E-banking is becoming more popular among retail banking customers. E-Banking helps you reduce costs by offering cheaper and faster solutions to your customers. It helps customers choose the time, place, and method they want to use for services and their impact on multichannel service delivery. This E-Banking is powered by the "customer-pull and the Bank-push" two-engine.

Technology is one of the most important factors in the development of humanity. Information and Communication Technology is the most important advancement in technology for accessing, processing, storing and disseminating electronic information. The banking industry is rapidly growing with ATM technology, on-line banking, telephone banking, mobile banking services, etc. The plastic card is one of the banking products that meet the needs of the retail segment in recent years in geometric development . This growth was consistently supported by technological development without which, of course, this would not have been possible, will change our way of life in the coming years.

Source by Jeevi Tha

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