DOI: 10.36347/sjebm.2014.v01i10.005

Pages: 472-479

As far as the Indian banking is concerned, the sector has emerged as one of the strongest drivers of nation’s economic escalation. The Indian banking industry has made stupendous advancement in the last few years, even during the time when the rest of the world was struggling with financial meltdown. This could have been possible due to two vital factors. Firstly the liberalization of the financial and banking sector resulted in the launching of new generation tech-savvy private banks, ultimately creating a new competitive economic environment. Secondly, the conservative policies of the Reserve Bank of India (RBI) have protected Indian banks from recession and global economic turmoil. In this way the Indian banks manage to be at higher value in comparison to Asian banks. Today, we are having a fairly well developed banking system with different classes of banks such as public sector banks, private banks, foreign banks, cooperative banks and regional rural banks. Booming of IT industry in India and subsequent implementation of IT solutions has taken the Indian banking sector one step closer towards the technological revolution. Computerized inter connectivity across bank branches, modernization of payment services, transaction through Electronic Clearing Service (ECS), Real Time Gross Settlement System (RTGS), National Electronic Fund Transfer (NEFT), mobile banking, internet banking, SMS banking, tele-banking, online submission of loan applications, issue and distribution of ATMs, and credit cards are all landmarks in banking technology revolution.