Impact Of Information Technology In Banking Sector

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TECHNOLOGICAL INNOVATIONS IN BANKING SECTOR IN

INDIA IN THE 21ST CENTURY

PROF. VAISHALI RAMESH GAIKWAD

College of Computer Science,

Survey No.130, Mumbai bangalore Highway,Wakad, Pune 411057.

Email – [e-mail] Mobile No : 8793707822

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Now a day’s banking sector plays a very important role in human life, banks motivate

people to save money for their future. It provides number of facilities to the people and has

become a need of the society. As we know that in the 21st century every sector has a great

challenge regarding

Processing and execution of payment

instructions is one of the statutory obligations of the banks. However the use of computers

and communications has now changed the whole mechanism of funds transfer and the

settlement process into the fast and automated Electronic Fund Transfer systems.

INFORMATION TECHNOLOGY : CHANGING THE BANK SERVICE SCENARIO.

With the introduction of computers in Indian banks and with the advent of ATM’s,

the banking services are provided across the banks. Customers need not necessarily visit the

branch to do banking transactions, when the banks provide them with Tele – banking or

remote – banking facility. This type of banking is called electronic banking and the concept is

becoming popular with individuals as well as corporate entities in India.

1. INTERNET BANKING :

E - banking refers to electronic banking. It is like e - business in banking industry.

E-banking is a result of the growing expectations of bank's customers. E-banking involves

information technology based banking. Under this I.T system, the banking services are

delivered by way of a Computer - Controlled System.

2. TELEBANKING

This concludes that there exists a scope for public sector banks to distinguish

themselves through their e-banking services.

• Ms. Namita Rajput & Monika Gupta ( 2011 ) in their research states that, there is an

increasing trend in performance of Indian banks caused by IT innovation and enlarged

investment in new information technology during the recent time period. Introduction

of E-banking, mobile banking, ATM facility and card based funds transactions, etc.

became a part of their functional norms. Hence, Indian commercial banks have improved

efficiency and performance after the advent of IT in recent era.

• Dr. Himani Sharma ( 2011 ) states that there is not much awareness in Indian customers

regarding use of e-banking services. But, the guidance and persuasion by bankers does

promote the use of such services amongst the customers. There is greater incidence of e- banking usage among the middle age men (30 to 50 years of age); and women customers

use such services much less frequently. Occupation-wise, the professionals, followed by

business class, make more use of e-banking services.

OBSERVATIONS & FINDINGS :

1. Though there is lot of spread of computer use even in the lower strata of the