Advantages Of E-Banking

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INTRODUCTION The Indian financial system was set in motion since 1991, which has brought a great change in the banking sector of the country. There has been a gradual shift in this industry from a regulated market towards a deregulated market. The various developments in the banks have been kindled by liberalization and globalization, which in turn resulted in changes in the role of banks. The transformation pace has been more significant in recent times with technology acting as a catalyst. With the global banking going through the period of transition, effective banking system is soon becoming a global issue. The various reforms in the financial sector covering the banking, insurance, trade, taxation, etc., have acted as major catalyst in…show more content…
It was concluded that 49.5 percent of the people prefer to make their payments through card especially debit card, online banking follows this and so on. Figure11: Methods used to encourage E-Banking The above figure represents the various methods used to encourage E-banking in the country. The population had rated these methods individually on the scale of 1-5. Majority of the people gave highest rating to the “guarantee given by the bank of providing security and privacy”. This factor is responsible fore encouraging E-banking. Figure12: Effect of mergers on profits The above figure depicts the effect of merges in the bank, on the quality of profits earned by these banks. In reference to the survey it can be concluded that in total 66 percent of the individuals agreed that the merges will have an effect in quality of the profits. Figure 13: New banking rules and business cost The above figure showed the impact of new banking rules in the business. From the random sample of 100 people it was analyzed that approximately 42 percent of the people believed that the new business rules and regulations implemented by the government of India in the banking system will raise cost of business in the country. Figure 14: Uniformity in the ATM technology given by…show more content…
In addition to this the customers are been motivated for increasing he use of plastic money like credit and debit card for making payments. The central bank of India, RBI has adopted IT in countersigning the payment system functionality and modernization by the development of Electronic Clearing Services, Electronic Funds Transfer (EFT), Centralized Funds Management System (CFMS), and Electronic Payment Systems. Therefore, Indian banking environment has become more compatible as compare to the standards of international financial system, by the positive impact of all these

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