Notes

Impact Of Technology In Banking
In the planet of banking and finance nothing stands still. The biggest change of most is in the, scope of the business of banking. Banking in its traditional from can be involved with the acceptance of deposits from the customers, the lending of surplus of deposited money to suitable customers who wish to borrow and transmission of funds. Aside from traditional business, banks now a days provide a wide variety of services to fulfill the financial and non financial needs of all forms of customers from the smallest account holder to the biggest company and in some cases of non customers. The range of services offered differs from bank to bank depending mainly on the sort and size of the bank.

RESERVE BANK'S EARLY INITIATIVES
As a central bank in a developing country, the Reserve Bank of India (RBI) has adopted development of the banking and financial market as one of its prime objectives. "Institutional development" was the sign of this process from 1950s to 1970s. In the 1980s, the Reserve Bank centered on "improvements in the productivity" of the banking sector. Being convinced that technology may be the key for improving in productivity, the Reserve Bank took several initiatives to popularize usage of technology by banks in India.

Periodically, almost once in five years because the early 1980s, the Reserve Bank appointed committees and working Groups to deliberate on and recommend the correct use of technology by banks give the circumstances and the need. These committees are the following:
-Rangarajan committee -1 in early 1980s.
-Rangarajan committee -11 in late 1980s.
-Saraf working group in early 1990s.
-Vasudevan working group in late 1990s.
-Barman working group in early 2000s.

Based on the recommendations of these committees and working groups, the Reserve Bank issued suitable guidelines for the banks. In the 1980s, usage of technology for the trunk office operations of the banks predominated the scene. It had been by means of accounting of transactions and collection of MIS. In the inter-bank payment systems, it was in the form of clearing and settlement using the MICR technology.

Two momentous decisions of the Reserve Bank in the 1990s changed the scenario for ever there are:
a) The prescription of compulsory using technology in full measure by the brand new private sector banks as a precondition of the license and
b) The establishment of an exclusive research institute for banking technology institute for development and Research in Banking Technology.

Because the new private sector banks came on the scene as technology-savvy banks and offered several innovative products at the front office for the customers based on technology, the demonstration effect caught on the reset of the banks. Multi channel offerings like machine based (ATMs and pc-Banking), card based (credit/Debit/Smart cards), Communication based (Tele-Banking and Internet Banking) ushered in Anytime and Anywhere Banking by the banks in India. The IDRBT has been instrumental in establishing a safe and sound, advanced communication backbone in the from of the Indian 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 to Indian service industry. Probably Indian banking industry learnt a significant lesson. Pre-liberalization, all we did at a bank was deposit and withdraw money. Service standards were pathetic, but all we could do was grin and bear it. Post-liberalization, the tables have turned. It is a consumer oriented market there.

Technology is revolutionizing every field of human endeavor and activity. One of them is introduction of information technology into capital market. The internet banking is changing the banking industry and is having the major effects on banking relationship. Web is more important for retail financial services than for most other industries.

Retail banking in India is maturing as time passes, several products, which further could be customized. Most happening sector is housing loan, that is witnessing a cut-throat competition. The house loans are very popular as they enable you to realize your most cherished dream. Interest rates are decreasing and market has seen some innovative products as well. Other retail banking products are unsecured loan, education loan and vehicles loan. Nearly every bank and lender is offering the products, but it is vital to understand the various aspects of these loan products, which are not mentioned in their colored advertisements.

PLASTIC MONEY
Plastic money was a delicious gift to Indian market. Giving rest from carrying an excessive amount of cash. Now several new features put into plastic money to make it more appealing. It works on formula purchase now repay later. You can find different facts of plastic money credit card is synonyms of most.

Credit card is really a financial instrument, that can be used more than once to borrow funds or buy products and services on credit. Banks, shops along with other businesses generally issue these. Based on their credit limit, they're of different kinds like classic, gold or silver.

Charged cards-these too carry almost same features as bank cards. The essential difference is you can not defer payments charged generally have higher credit limits or some times no credit limits.
Debit cards-this card is may be characterized as accountholder's mobile ATM, for this you have to have account with any bank offering credit card.

Over the years, the banking sector in India has seen a no. of changes. Most of the banks have begun to take a forward thinking approach towards 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 advantages of the booming market for cell phones and cellular services, several banks have introduced mobile banking that allows customers to execute banking transactions utilizing their mobile phones. For website HDFC has introduced SMS services. Mobile banking has been especially targeted at individuals who travel frequently and to keep an eye on their banking transaction.

RURAL read more of many innovative scheme to be launched in rural banking was the KISAN CREDIT CARD (KCC) SCHMME were only available in fiscal 1998-1999 by NABARD. KCC mode it easier for framers to purchase important agricultural inputs. As well as regular agricultural loans, banks to offer several other products targeted at the needs of the rural people.

Private sector Banks also realized the potential in rural market. In the first 2000's ICICI bank began setting up internet kiosks in rural Tamilnadu along with ATM machines.

NRI SERVICES
With a substantial amount of Indians having relatives abroad, banks have begun to offer service which allows expatriate Indians to send money more conveniently to relatives India that is among the major improvements in money transfer.

E-BANKING
E-Banking is becoming ever more popular among retail banking customers. E-Banking helps in cutting costs by providing cheaper and faster ways of delivering products to customers. It also helps the customer to choose the time, place and way he wants to use the services and provides effect to multichannel delivery of service by the bank. This E-Banking is driven by twin engine of "customer-pull and Bank-push".

CONCLUSION
Technology has been one of the important factors for the development of mankind. Information and communication technology may be the major advent in neuro-scientific technology which is used for access, process, storage and dissemination of information electronically. Banking industry is fast growing with the use of technology in the from of ATMs, on-line banking, Telephone banking, Mobile banking etc., plastic card is one of the banking products that cater to the requirements of retail segment has seen its number grow in geometric progression in recent years. get more info has been strongly supported by the development of in the field of technology, without which this may not have been possible needless to say it will change our lifestyle in coming years.

E.Jeevitha
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