In the development of Indian Banking, banking sector plays a really of import and important function. The banking Industry has experienced a series of important transmutations in the last few decennaries. The usage of modern engineering by Bankss is one of the strategic responses that manage the concern of banking in more crystalline and profitable mode in the globalized and liberalized fiscal system. The banking today is redefined and re-engineered with the usage of IT and it is certain that the hereafter of banking will offer more sophisticated services to clients with the uninterrupted merchandise and procedure inventions. The article presents a survey which aims to analyse the function of information engineering ( IT ) in the Indian banking system. Indian Bankss are puting to a great extent in the engineerings such as machine-controlled Teller machine, net banking, nomadic banking, recognition cards, debit cards and informations warehousing etc. These engineerings driven bringing channels are being used to make out to maximal figure of clients at lower cost and in most efficient mode. It is indispensable to measure the impact of information engineering on the public presentation of Indian Bankss every bit good as to measure the Status of E-Banking in Indian commercial Bankss.
Keywords: Indian Banks, Information Technology, Customer satisfaction, E-Banking
Introduction: Business profile of Bankss in India has been undergoing a drastic alteration. Forces of globalisation, liberalisation of involvement rate government, liberty to Bankss, have changed the traditional benchmarks of banking and now profitableness and transparent banking are trademarks of today ‘s banking. Therefore, engineering in Bankss has played an progressively critical function to better the public presentation in footings of productiveness and client satisfaction. The overall impact an Indian bank is being presented below:
Productiveness: Use of engineering by Bankss has increased the productiveness really fast through mechanization of banking operations. The Electronic engineering instruments adopted by Indian Banks are: Automated Teller Machine ( ATM ‘s ) , Telex, Fax, E-Banking, On-line banking etc. With the debut, execution and acceptance of above techniques and instruments by the Bankss have wholly revolutionized the maps, operations, disposal, determination devising and direction information system. The benefits accruing to the Bankss are:
Speed and truth in dealing covering
New expression, new entreaty, new visual aspect and new attractive force
Better storage and economical saving of records and easy retrieval.
Better communicating, information and coordination.
Decrease in staff as a consequence of lessening in constitution cost.
Reduces client visits to the subdivision and thereby human intercession.
Customer Satisfaction: Banks are now turning their focal point from market orientation to client orientation, because in banking concern now there is perfect competition due to liberalization in economic system and entry of new private Bankss. Technology is the key to travel towards supplying integrated banking services to clients. New engineering has quickly altered the traditional ways of making banking concern. Customer can see the histories, acquire history statements, reassign financess, purchase bill of exchanges by merely doing a few cardinal clouts. The benefits accruing to the client are:
Excellence in client services, prompt attending to their demands and speedy disposal of their grudges
Anywhere Banking no affair wherever the client is in the universe. Balance question, petition for services, publishing instructions etc. , from anyplace in the universe is possible.
Anytime Banking – Pull offing financess in existent clip and most significantly, 24 hours a twenty-four hours, 7days a hebdomad.
Brings down “ Cost of Banking ” to the client over a period a period of clip.
Cash backdown from any subdivision / ATM
On-line purchase of goods and services including on-line payment for the same.
The usage of synergistic electronic links via the Internet could travel a long manner in supplying the clients with greater degree of information about both their ain fiscal state of affairs and about the services offered by the bank.
Reappraisal of literature
AnanthaKrishnan G. ( 2005 ) describes client ‘s services in the Bankss. The know aparting client ‘s outlooks have begun to alter in footings of quality and service. With the coming of computing machines and ATMs, the spread between the clients and the banking forces is widening. Unless a alteration of bosom occurs, even the largest Bankss will happen it difficult to last on their assumed false glorification. Banks which take attention to see the world and respond early will last and thrive, while those who continue the traditional way will happen their market portion eaten off. Sobol and Cron ( 2006 ) conducted the survey to happen the relationship between cybernation and several steps of overall steadfast public presentation. Three public presentation comparings are presented: users versus non-users of computing machines, three degrees of use, and category of computing machine use. Result indicate that cybernation is related to overall public presentation. Non-users tend to be little houses with approximately mean overall public presentation. Shetty ( 2006 ) concluded that globalisation in banking is based on four of import pillars viz. trade in goods and services ; flow of capital and motion of human existences across boundaries ; harmonisation of regulative model in different states ; and developments in engineering, peculiarly those in information engineering. J.C Henderson ( 2011 ) high spots that even though ( IT ) has evolved from its traditional orientation of administrative support toward a more strategic function within an organisation. It says that there is still a blazing deficiency of cardinal models within which to understand the potency of IT for tomorrow ‘s organisation.
The aims of this paper are as follows
To measure the Status of E-Banking in Indian commercial Bankss.
To analysis the function of Information Technology and its relevance in Indian Bankss in the recent epoch.
IT Percolation in Banks: India ‘s banking operations are dominated by 20 nationalized Bankss, State Bank of India together with 5 of its associates called SBI group, 21 private sector Bankss out of which 7 are new & A ; 14 are old private sector Bankss and 32 foreign Bankss runing in India. In melody with the planetary tendencies, these Bankss have been puting to a great extent in engineering, substructure and solutions entire outgo incurred on cybernation and development of communicating webs by public sector Bankss entirely between September 1999 and March 31st 2010 is Rs. 17897 crore.
Table-1 Group- wise Scenario of Percolation of IT in Indian Banks
( as at terminal March 2010 )
State bank group
Old private sector Bankss
New private sector Bankss
Fully computerized subdivisions ( % )
IT Expenditure ( in crore incurred between September 1999 & A ; March 2010
Beginning: RBI ‘s Report on Trend and Progress of Banking in India 2009-2010
It is clear from the informations shown in table 1 that Bankss have invested to a great extent over the old ages in information engineering systems.
E-Banking: Electronic banking is by and large an extension of traditional banking, utilizing the cyberspace as an electric bringing channel for banking merchandises and services. E-banking is a scope of banking services that utilizes electronic equipment and includes Telephone banking, Net Banking, ATM, Debit/Credit Card. EFT, AFT etc. Many Bankss have modernized their services with the installations of computing machine and electronic equipments. The electronics revolution has made it possible to supply easiness and flexibleness in banking operations to the benefit of the client. The e-banking has made the client say adieu to immense history registries and big paper bank histories.
Status of E-Banking in India
E-banking construct now mostly implemented in assorted activities of Bankss. Following are some payment system indexs which show the advancement of E-banking in India.
Table 2 Payment system indexs
Volume ( 000s )
Value ( Rupees millions )
1.High Value Clearing
3. MICR Uncluttering
5. ECS DR
6. ECS CR
8.Credit Card games
9. Debit cards
Beginning: Run batted in
Table 2 relates with Payment System Indicators shows that the usage of debit cards for payment is most normally used instrument in Indian banking sector. However RTGS and ECS CR system besides demoing advancement besides. The tabular array besides shows the advancement of minutess under e-banking in 2011-12 as compared 2009-10.
Recognition and Debit cards: The Credit Card holder is empowered to pass wherever and whenever he wants with his Credit Card within the bounds fixed by his bank. Credit Card is a station paid card. Debit Card, on the other manus, is a postpaid card with some stored value. Every clip a individual uses this card, the Internet Banking house gets money transferred to its history from the bank of the purchaser. The bank ne’er faces a default because the sum spent is debited instantly from the client ‘s history.
Table: 3 Credit and Debit cards issued by Schedule Commercial Banks ( As at terminal March2012 ) ( In Millions )
Outstanding Number of Credit cards
Outstanding Number of debit cards
Public sector Bankss
Private sector Bankss
Old private sector Bankss
New private sector Bankss
Beginning RBI Note: Components may non add up to entire due to rounding off Numberss to 1000000s.
Table 3 shows that Issuance of recognition cards declined, while debit cards showed a high growing tendency. Foreign Bankss, nevertheless, showed a little diminution in the issue of debit cards. More than three-quarterss of the entire debits cards outstanding as at terminal of March 2012 were issued by public sector Bankss. In contrast, more than half of the outstanding recognition cards as at the terminal of March 2012 were issued by new private sector Bankss.
Automated Teller Machine ( ATM ) : The traditional subdivision theoretical account of bank is now replaced with an alternate bringing channels like ATM web by utilizing the fictile card with its particular characteristics. It is otherwise being called as debit cards. The fictile ATM card is replacing all paper based confirmation including check, and it avoids the personal attending of the client during the limitation of banking hours. ATMs used as facilitator for Electronic Fund Transfer. ATM itself can supply information about histories of clients and besides receive information ‘s and instructions from clients like stop direction, car wage, cheque bead, etc. , An ATM is an Electronic Fund Transfer terminal facilitating hard currency sedimentations, inter and intra transportation between histories, balance questions along with mini statement of histories, hard currency backdowns and pay measures.
Table 4 ATMs of Schedule Commercial Banks ( As at terminal -March 2012 )
On -Site ATMs
Entire figure of ATMs
1.Public sector Bankss
1.1 Nationalized Bank
2. Private sector Bankss
2.1Old private sector Bankss
2.2 New Private sector bank
All SCBs ( 1+2+3 )
Beginning RBI Note: Excluding IDBI Bank Ltd.
Table 4 shows that during the twelvemonth 2011-12, an extra 21,000 ATMs were deployed by the Bankss. Public sector Bankss accounted for more than 60 per centum of the entire figure of ATMs as at terminal March 2012, while near to one -third of the entire ATMs were attributable to new private sector Bankss.
Future mentality in India
The Indian Bankss lag far behind the international Bankss in supplying on-line banking. In fact, this is non possible without making sufficient substructure or presence of sufficient figure of users. Technology is traveling to keep the key to hereafter of banking. Banking accomplishments is non possible without IT revolution. In the hereafter, the cyberspace is likely to go an of import instrument for the banking industry, though security consideration will mostly find its use. So, Bankss should seek to happen out the trigger of alteration. The attack of the IT construct to the rural country may besides be adopted. More and more regional linguistic communications package ‘s could be introduced to pull more and more people from rural country besides.
The information Technology is going an of import constituent of the banking sector. IT has no uncertainty changes the overall form of banking system. There is a paradigm displacement from marketer ‘s market to purchaser ‘s market. Banks besides change their attack from “ Conventional Banking to Convenience Banking ” and “ Mass banking to Class Banking ” . So Bankss are now more dressed ore on supplying value added services to clients. In India it can be successful merely if it is decently implemented in rural countries besides. The technological promotion and intercession in the banking sector non merely facilitates the Bankss to offer value added fiscal services to its clients, but besides helps to keep the majority volume of day-to-day fiscal minutess and building a broad scope of informations warehousing. So, that the bank can build, develop and keep a complete information base of the client, it will be used to construct up strong client relationship direction. In that scenario, the Bankss will lend their best towards state ‘s growing.