Impact Of Technology In Banking

In the world of banking and finance nothing stands still. The biggest change of all is in the, scope of the business of banking. Banking in its traditional from is concerned with the acceptance of deposits from the customers, the lending of surplus of deposited money to suitable customers who wish to borrow and transmission of funds. Apart from traditional business, banks now a days provide a wide range of services to satisfy the financial and non financial needs of all types of customers from the smallest account holder to the largest company and in some cases of non customers. The range of services offered differs from bank to bank depending mainly on the type and size of the bank.

RESERVE BANK’S EARLY INITIATIVES
As 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 objectives. “Institutional development” was the hallmark of this approach from 1950s to 1970s. In the 1980s, the Reserve Bank focused on “improvements in the productivity” of the banking sector. Being convinced that technology is the key for improving in productivity, the Reserve Bank took several initiatives to popularize usage 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 on and recommend the appropriate use of technology by banks give the circumstances and the need. These committees are as follows:
-Rangarajan committee -1 in early 1980s.
-Rangarajan committee -11 in late 1980s.
-Saraf working group in early 1990s.
-Vasudevan working group in late 1990s.
-Barman working group in early 2000s.

Based on the recommendations of these committees and working groups, the Reserve Bank issued suitable guidelines for the banks. In the 1980s, usage of technology for the back office operations of the banks predominated the scene. 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 scenario for ever there are:
a) The prescription of compulsory usage of technology in full measure by the new private sector banks as a precondition of the license and
b) The establishment of an 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 innovative products at the front office for the customers based on technology, the demonstration effect caught on the reset of the banks. Multi channel offerings like machine based (ATMs and pc-Banking), card based (credit/Debit/Smart cards), Communication based (Tele-Banking and Internet Banking) ushered in Anytime and Anywhere Banking by the banks in India. The IDRBT has been instrumental in establishing a safe and secure, state of the art communication backbone in the from of the Indian Financial NETwork (INFINET) as a closed user group exclusively for the banking and financial sector in India.

CHANGING FACE OF BANKING SERVICES
Liberalization brought several changes to Indian service industry. Probably Indian banking industry learnt a tremendous lesson. Pre-liberalization, all we did at a bank was deposit and withdraw money. Service standards were pathetic, but all we could do was grin and bear it. Post-liberalization, the tables have turned. It’s a consumer oriented market there.

Technology is revolutionizing every field of human endeavor and activity. One of them is introduction of information technology into capital market. The internet banking is changing the banking industry and is having the major effects on banking relationship. Web is more important for retail financial services than for many other industries.

Retail banking in India is maturing with time, several products, which further could be customized. Most happening sector is housing loan, which is witnessing a cut-throat competition. The home loans are very popular as they help you to realize your most cherished dream. Interest rates are coming down and market has seen some innovative products as well. Other retail banking products are personal loan, education loan and vehicles loan. Almost every bank and financial institution is offering these products, but it is essential to understand the different aspects of these loan products, which are not mentioned in their colored advertisements.

PLASTIC MONEY
Plastic money was a delicious gift to Indian market. Giving respite from carrying too much cash. Now several new features added to plastic money to make it more attractive. It works on formula purchase now repay later. There are different facts of plastic money credit card is synonyms of all.

Credit card is a financial instrument, which can be used more than once to borrow money or buy products and services on credit. Banks, retail stores and other businesses generally issue these. On the basis of their credit limit, they are of different kinds like classic, gold or silver.

Charged cards-these too carry almost same features as credit cards. The fundamental difference is you can not defer payments charged generally have higher credit limits or some times no credit limits.
Debit cards-this card is may be characterized as accountholder’s mobile ATM, for this you have to have account with any bank offering credit card.

Over the years, the banking sector in India has seen a no. of changes. Most of the banks have begun to take an innovative approach towards banking with the objective of creating more value for customers and consequently, the banks. Some of the significant changes in the banking sector are discussed below.

MOBILE BANKING
Taking advantages of the booming market for mobile phones and cellular services, several banks have introduced mobile banking which allows customers to perform banking transactions using their mobile phones. For instances HDFC has introduced SMS services. Mobile banking has been especially targeted at people who travel frequently and to keep track of their banking transaction.

RURAL BANKING
One of the innovative scheme to be launched in rural banking was the KISAN CREDIT CARD (KCC) SCHMME started in fiscal 1998-1999 by NABARD. KCC mode it easier for framers to purchase important agricultural inputs. In addition to regular agricultural loans, banks to offer several other products geared to the needs of the rural people.

Private sector Banks also realized the potential in rural market. In the early 2000’s ICICI bank began setting up internet kiosks in rural Tamilnadu along with ATM machines.

NRI SERVICES
With a substantial number of Indians having relatives abroad, banks have begun to offer service that allows expatriate Indians to send money more conveniently to relatives India which is one of the major improvements in money transfer.

E-BANKING
E-Banking is becoming increasingly popular among retail banking customers. E-Banking helps in cutting costs by providing cheaper and faster ways of delivering products to customers. It also helps the customer to choose the time, place and method by which he wants to use the services and gives effect to multichannel delivery of service by the bank. This E-Banking is driven by twin engine of “customer-pull and Bank-push”.

CONCLUSION
Technology has been one of the most important factors for the development of mankind. Information and communication technology is the major advent in the field of technology which is used for access, process, storage and dissemination of information electronically. Banking industry is fast growing with the use of technology in the from of ATMs, on-line banking, Telephone banking, Mobile banking etc., plastic card is one of the banking products that cater to the needs of retail segment has seen its number grow in geometric progression in recent years. This growth has been strongly supported by the development of in the field of technology, without which this could not have been possible of course it will change our lifestyle in coming years.

Read More

How I Achieved Maximum Success with

The Benefits of Working with Metal Roofing Replacement Companies

Roofing is considered to be an important part of any house and that is the reason why you have to be careful about how you’re going to do it. When you look at many houses today, people are careful about doing the best installation. The reason why this is very critical is that it helps to protect you from adverse weather conditions but in addition to that, it also ensures proper balancing of everything. However, when the roofing is damaged, it means that you will not be getting the usefulness that it had and therefore, you have to think about a solution. Today, there are very many different types of materials that are used in creating roofing solutions but, some of them are much better than others. If you’re going to do roofing, then you have to be very careful to work with the right company because then, you’ll be able to get lots of advantages. One of the best options that are available today is to work with companies that are going to provide you with metal roofing solutions. Metal roofing solutions are good especially because the metal is very durable. When there is a problem with the roofing, however, then you’ll have to look for a company that is going to help you with the same.

Today, there are companies that are able to provide you with the repair services of the same and when you work with them, you can be assured that you will be able to get a number of advantages. One of the biggest advantages is that these companies are going to help you to do the restoration of the metal roofing in a very unique way. They provide high-quality services and therefore, do not have to worry about anything. The company in fact even provides financing options and therefore, really do not have to worry. The company will also be very good for you especially because the company is going to ensure that have been able to get the best results with any project that you are going to undertake. Another reason why you have to work with these companies is that the project is going to be taken in a very short time because that is critical. Reducing the amount of time that it is going to take for this kind of thing is what the company usually focuses on. The metal roofing projects are supposed to be done by the best companies who understand how delicate this can be or how, this is supposed to be done. In addition to that, the companies are also able to do repairs on the metal roofing. If you need new installations, they are the people who are going to handle them. Another reason for working with these companies is that they also provide tile work meaning that, they are also a general contractor company. If you need some tiling, the companies will be able to provide such services in a very easy way.

Getting To The Point –

Where To Start with and More

Read More

If You Read One Article About , Read This One

Key Things You Need To Think About When Choosing the Right Copier Vendor

Buying or leasing the right copier for your business is an important aspect. It is important also to find a quality copier and at a good value but most people overlook the vendor. People buy these equipment from companies that they never hear of again after the investment. Selecting the copier vendor is something you should take very seriously. It is however not an easy thing to pick the right copier vendor simply because there are numerous options that you should choose from. There are some things that you need to contemplate for you to be able to pick the right copier supplier. The following are some of the top factors to consider when picking the right copier vendor.

The first tip for choosing the best copier supplier is to know whether they have the right infrastructure to support businesses locally. Ask yourself if they have locations near you. You need also to ask them how long it can take for the technician to come to your office and resolve the problem with your copier. It is important for the supplier you choose in addition to having locations near you, to also have adequate team operating in those locations.

The second tip for choosing the best copier supplier is to know whether they provide free set up and installation. You have to make sure by all means that the vendor you select has a physical location. You well know that copiers are complicated machines so installing and setting them up should entirely be left to the experts who knows what they are doing. If you are looking for a vendor that will not offer these services to you, you need as well assume that they will not be in a position to meet your other basic needs of the copier.

You need also to consider the services of the vendors that offer free delivery of the copier. This is going to save you a lot of your time and money.

The other thing that you need to think about when choosing the best copier vendor is whether they provide free product training. Most copier users only have little knowledge of using small portion of the available features. As a businessperson, you want to utilize all the features in the copier to get the best value for your money but they will not be of any benefit to your business if they are not being used to their full potential. It is of importance to get a vendor that provides free training. The needs or the users of the copier may change throughout its entire life. The best vendor is the one who offers free training on the products bought from them.

Consider also the available financing options that are available when buying a copier machine. Buying this machine outright may not be the best option for every business. Leasing can be the best option for you as it allows your business to keep capital available for other things as have the chance to upgrade as you grow. A copier vendor that has leasing options to your business can bring a big difference to your bottom line.

What Research About Can Teach You

Figuring Out

Read More