How technology is helpful for Indian Banking sector

The process of computerization marked the beginning of all technological initiatives in the banking industry. Computerization of bank branches had  started with installation of simple computers  to automate the functioning  of branches.Today technology has brought a complete paradigm shift in
the functioning of banks and delivery of banking services,as most of the transactions can be done from the home and customers need not visit the  bank branch for anything.Technology is no longer an enabler, but a business driver. The growth of the internet, mobiles and
communication technology has also added a different dimension to banking. Because of use of technology we now have ATM,Cash Deposit Machine,Online Banking,Mobile Banking etc.

The following points highlights the importance of technology in the industry:

1>E-banking: This enables the bank to deliver its services easily to its  customers. Customers can access their bank details on their own computers, make money transfers from one account to another, print  bank statements and  inquire about their financial transactions.

2>Rural Banking:  Unlike in the past when banking was centralized in urban areas, now day’s technology has made it simple to set up banking facilities in rural areas.In this case a user in a rural area will have an account with a mobile company which is opened for free. They can then deposit money on that account via a near by mobile money operating center. This money can be withdrawn at any time .

3>Real Time Gross Settlement (RTGS):

As the name suggests, funds transfer between banks takes place on a ‘Real Time’ basis. Therefore, money can reach the beneficiary instantaneously and the beneficiary’s bank has the
responsibility to credit the beneficiary’s account within two hours. Real Time Gross Settlement system, is a Interlink Research Analysis system through which electronics instructions can be given by banks to transfer funds from their account to the account of another bank.

4>Automatic Teller Machine (ATM):

Automatic Teller Machine is the most popular devise in India, which enables the customers to withdraw their money 24 hours a day 7 days a week. It is a device that allows customer who has an

Automatic Teller Machine (ATM) card to perform routine banking transactions without interacting with a human teller. In addition to cash withdrawal, Automatic Teller Machines (ATMs) can be

used for payment of utility bills, funds transfer between accounts, deposit of cheques and cash into accounts, balance inquiry etc. any were in that area and they can also receive or send money using the same system.

5>Plastic Money:  Credit cards or Debit cards like  have made the banking industry  more flexible than before. With a credit card , a customer can borrow a specific amount  of money from the bank to purchase any thing and the bank bills them later.  In this case, they don’t have to go through the hassle of borrowing small money.  Then with Debit Cards a customer can pay for any thing using that card and that  money is deducted from their bank accounts automatically, they can also use the  same card to deposit  or withdraw money from their accounts using an ATM machine.

Conclusion:From enabling banking services to driving transformation in the Industry,technology have changed the banking industry from paper and branch based banks to digitized and networked banking services. It has also played a principal role in protecting the interest of its clients and business partners from fraud and losses.