International Journal of Banking, Risk and Insurance

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Indian Banking System:Journey from Traditional to Digital


     

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For the economy, banking sector represents its heart. If the heart is clogged, the economy can't return to vitality. As seen in last years, bank's ability to support growth itself was limited because of their bad loans and private sector was not being able to bring in kind of investment that was required amid a slowing global economic situation. However, for banks to be successful, it is imperative to increase their customer base, retain their existing customer, and offer customers the products and services which are most beneficial to them. In today's tech-savvy era, it is difficult to escape the word 'digital' in any conversation, or strategy or discourse necessitating banks to follow the route. With the Central Government's move to declare the high currency notes of value worth Rs.1,000 and Rs. 500 (being 85% of total money in circulation; in value terms - Rs. 14 lakh) to be non-legal tender from November 8, 2016, PM Modi has done for Indian banks what would have taken them more than a decade to do, i.e. push the ordinary citizen to use digital modes for payment.

Banking sector in India embraced technology right from 1980's through mechanisation of cheque processing to evolution of ATMs, NEFTs, computerisation of branches (in 1990s) to adopting online and tele-banking post-2000, but witnessed a very slow progress on digital adoption by customers. The present research paper aims to focus on technological trends in Indian banking and its future challenges to meet customer's financial needs.


Keywords

Plastic Money, Demonetisation, Data Protection, Cyber Attacks, Cashless Phase.
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  • Bhakta, P. (2017, Jan. 4). Phone banking clicks with masses as ModiSarkar cons incentives. The Economic Times.

  • Digital Push-SBI waives card transaction fee for small businesses. (2017, Jan. 10). The Economic Times.

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  • Waghmare, A. (2016, Dec. 27). The year cashless payments trended upwards. Retrieved from http:// www.business-standard.com/article/economypolicy/ post-demonetisation-digital-payments-aredown15-116122700098_1.html


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  • Indian Banking System:Journey from Traditional to Digital

Abstract Views: 300  |  PDF Views: 0

Authors

Abstract


For the economy, banking sector represents its heart. If the heart is clogged, the economy can't return to vitality. As seen in last years, bank's ability to support growth itself was limited because of their bad loans and private sector was not being able to bring in kind of investment that was required amid a slowing global economic situation. However, for banks to be successful, it is imperative to increase their customer base, retain their existing customer, and offer customers the products and services which are most beneficial to them. In today's tech-savvy era, it is difficult to escape the word 'digital' in any conversation, or strategy or discourse necessitating banks to follow the route. With the Central Government's move to declare the high currency notes of value worth Rs.1,000 and Rs. 500 (being 85% of total money in circulation; in value terms - Rs. 14 lakh) to be non-legal tender from November 8, 2016, PM Modi has done for Indian banks what would have taken them more than a decade to do, i.e. push the ordinary citizen to use digital modes for payment.

Banking sector in India embraced technology right from 1980's through mechanisation of cheque processing to evolution of ATMs, NEFTs, computerisation of branches (in 1990s) to adopting online and tele-banking post-2000, but witnessed a very slow progress on digital adoption by customers. The present research paper aims to focus on technological trends in Indian banking and its future challenges to meet customer's financial needs.


Keywords


Plastic Money, Demonetisation, Data Protection, Cyber Attacks, Cashless Phase.

References