Impact of Technology in Banking

In the world of banking and finance does not stop. The most important of all is in the area of ​​banking business. Its traditional banking has to do with the acceptance of customer deposits, loans of surplus money deposited to the right customers who wish to borrow and transfer funds. Apart from the traditional business, banks now offer a wide range of services to meet financial and nonfinancial all types of customers account holder smallest to the largest of the company and in some cases customers are not. The range of services differs from one bank to another, depending mainly on the type and size of the bank.

Initial efforts of the Reserve Bank
As a central bank in a developing country, the Reserve Bank of India (RBI) has approved the development of banking and financial market as one of its primary objectives. "Institutional development" was the hallmark of this approach from 1950 to 1970. In the decade of 1980, the Reserve Bank focused on "improving productivity" of the banking sector. Believing that technology is the key to improving productivity, the Reserve Bank took several initiatives to popularize the use of technology by banks in India.

Periodically, after almost five years since the early 1980, the Reserve Bank appointed committees and working groups to discuss and recommend the appropriate use of technology by banks the circumstances and necessity. These committees are:
Rangarajan committee, -1 in early 1980.
Rangarajan committee, -11 in late 1980.
Saraf-working group in early 1990.
Vasudevan-working group in early 1990.
Barman-working group in the 2000s.

Based on the recommendations of these committees and working groups, the Reserve Bank issued appropriate guidelines to banks. In the 1980s, the use of technology for back office operations of banks dominated the scene. It was in the form of accounting transactions and the collection of MIS. In the interbank payment system, which was in the form of clearing and settlement through MICR technology.

Two important decisions of the Reserve Bank of the 1990s forever changed the scenario are:
a) The requirement of mandatory use of technology in its entirety by private sector banks in its new status of the license and
b) The establishment of a unique research institute for banking institute of technology development and research in banking technology.

As new private sector banks came to the scene as tech-savvy and banks offer several innovative products in the main office for technology-based clients, the demonstration effect trapped in restoring banks. Offers various channels such as the basic machine (ATMs and PC banking) based on the card (credit / debit / smart card), based on communication (Tele-Banking and Internet Banking) Bank marked the beginning of any time and held by banks in India. The IDRBT has been instrumental in establishing a secure, state of the backbone of communication in the art of India Financial Network (Infinet) as a closed user group exclusively for the banking and financial sector in India.

CHANGING FACE OF BANKING SERVICES
Liberalization brought several changes in the service industry in India. It is likely that the Indian banking tremendous learned a lesson. Prior to liberalization, all we did was in a bank deposit and withdraw money. Service standards were pathetic, but all I could do was grin and bear it. Following liberalization, the tables have turned. It is a consumer-oriented market there.

Technology is revolutionizing all areas of human endeavor and activity. One is the introduction of information technology in the capital market. Internet banking is changing the banking industry and is having a significant impact on the banking relationship. Web is more important to financial services for many other industries.

Retail banking in India is maturing with time, several products, which could be customized. Most of the industry is going home loan, which is witnessing a fierce competition. Housing loans are very popular as they help to make your fondest dream. Interest rates are falling and the market has seen some innovative products. Other retail banking are personal loans, student loans and car loans. Almost all banks and financial institutions are offering these products, but it is essential to understand the different aspects of these loan products, which are not mentioned in your ad colors.

The plastic money
The plastic money was a delightful gift for the Indian market. Taking a break from carrying too much cash. Now several new features added to plastic money to make it more attractive. Works on the purchase of formula now pay later. There are different cards made of plastic credit is money for all synonyms.

Credit card is a financial instrument that can be used more than once to borrow money or buy products and services on credit. Banks, shops and other businesses generally issue these. On the basis of your credit limit, are of different types like the classical gold or silver.

Cards, these defendants also lead to almost the same features of credit cards. The fundamental difference is that you can defer payment by generally have higher credit limits or sometimes without credit limits.
Debit cards, this card can be characterized as mobile ATM account for this you have to take into account with any bank card credit offered.

Over the years, the banking sector in India has been a no. of the changes. Most banks have begun to take an innovative approach to banking, with the aim of creating more value for customers and, consequently, the banks. Some of the significant changes in the banking sector are discussed below.

MOBILE BANKING
Taking advantage of the booming market for mobile phones and cell phone service, several banks have introduced mobile banking service enables customers to perform banking transactions using their mobile phones. For instances of HDFC has introduced SMS services. Mobile banking has been specially written for people who travel frequently and keep track of your banking.

Rural Banking
One of the innovative scheme to be launched in rural banking was the Kisan Credit Cards (KCC) SCHMME began in fiscal year 1998-1999 by NABARD. KCC easiest way for editors to buy farm inputs important. In addition to regulating agricultural loans, banks offer various other products geared to the needs of the rural population.

Private sector banks also realized the potential in the rural market. In early 2000, ICICI Bank began building Internet kiosks in rural areas of Tamil Nadu, along with ATMs.

NRI SERVICES
With a large number of relatives overseas Indians, banks have begun offering a service that enables Indian expatriates more convenient to send money to relatives in India, which is one of the major improvements in the transfer of money.

E-BANKING
E-banking is becoming increasingly popular among retail banking customers. E-Banking helps in reducing costs by providing cheaper and faster product delivery to customers. It also helps the customer to choose the time, place and method by which you want to use the services and implements the multi-channel delivery of service by the bank. This E-Banking is powered by two engines of "client-pull and push-Bank".

CONCLUSION
The technology has been one of the most important factors for the development of humanity. Information and communication is important arrival in the field of technology that is used for accessing, processing, storage and dissemination of information electronically. Banking industry is growing rapidly with the use of technology in ATMs, online banking, telephone banking, mobile banking, etc, is a plastic card banking products to suit the needs of the retail segment has increased its numbers in geometric progression in recent years. This growth has been strongly supported by the development in the field of technology, without which this would not have been possible of course that will change our lifestyle in the coming years.