E-Banking:Advantages, Challenges and Opportunities in the Indian Context

There has been an extensive expansion of the Indian financial system, out of which the banking sector is considered as the most significant component. Banks are the lifeline of any economy and are indispensable in a modern society. Today banks have expanded their purview of activities and are getting into new range of products and services like e-banking services, investment banking, mutual funds, general insurance, credit cards, demat services and so on. Due to liberalization, the financial system has a greater role to play than in the past and thus one cannot afford to ignore the importance of existence of a strong Indian banking sector. Increasing levels of competition and information age environment have exposed banks to a variety of challenges like technology, customer service, Basel III norms, new accounting standards, transparency, disclosure and corporate governance. The present study is an attempt to study the status of e-banking in India, growth in e-banking transactions, advantages and risks associated, challenges ahead, opportunities and managerial implications arising out the study.