In the wonderful world of banking and finance nothing at all stands still. The biggest change of all is in the, scope of the business of bank. Banking in its traditional from is involved with the acceptance of deposit from the customers, the lending of surplus of deposited money to ideal customers who wish to borrow and transmission of funds. Aside from traditional business, banks more recently provide a variety of services to gratify the financial and non financial needs of most types of customers from the actual accounts holder to the major company and sometimes of non customers. The product range of services offered differs from bank to bank depending mainly on the sort and size of the loan company. bobibanking
RESERVE BANK’S EARLY PROJECTS
Like 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 goals. “Institutional development” was the hallmark of this procedure from 1950s to 1972s. In the 1980s, the Reserve Bank dedicated to “improvements in the productivity” of the banking sector. Becoming convinced that technology is the key for increasing in productivity, the Hold Bank took several projects to popularize use of technology by banks in India.
Periodically, almost once in five years since the early 1980s, the Reserve Bank appointed committees and working Groups to deliberate as well as recommend the appropriate use of technology by banking institutions supply the circumstances and the need. These committees are as follows:
-Rangarajan panel -1 in early nineteen eighties.
-Rangarajan committee -11 at the end of nineteen eighties.
-Saraf working group in early 1990s.
-Vasudevan working group in late nineties.
-Barman working group in early 2000s.
Based on the tips of the committees and working groups, the Reserve Bank issued ideal guidelines for the finance institutions. In the 1980s, use of technology for your back office functions of the banks predominated the landscape. It was in the form 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 circumstance for ever there are:
a) The prescription of required use of technology in full measure by the new private sector banking companies as a precondition of the license and
b) The establishment of your exclusive research institute for banking technology institute for development and Research in Banking Technology.
As the new private sector banks came on the scene as technology-savvy banks and offered several progressive products at the front office for the shoppers based on technology, the demonstration effect caught on the reset of the banks. Multi channel attractions like machine based (ATMs and pc-Banking), card primarily based (credit/Debit/Smart cards), Communication primarily based (Tele-Banking and Internet Banking) ushered in Anytime and Anywhere Banking by the banks in India. The IDRBT has been a key component in establishing a secure and secure, state of the art communication anchor in the from of the Indian Financial NETwork (INFINET) as a shut down user group exclusively for the banking and financial sector in India.
CHANGING FACE OF BANKING SOLUTIONS
Liberalization brought several changes to Indian service industry. Probably Indian banking industry learnt a tremendous lessons. Pre-liberalization, all we performed at a bank was deposit and withdraw money. Service standards were horrible, but all we could do was grin and bear it. Post-liberalization, the tables have turned. Is actually a consumer oriented market there.