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Sr.no Name Roll Number


1 Gaurav Mandana 818
2 Nikhil Chellani 834
3 Nilesh Changlani 836

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Sr.No Topic Page no

1 Introduction of BANKS 3
1.1 Banking 3
1.2 C annel 4
1.3 Products 4
1.4 Types of banks 4
1.5 Facilities 6
2. Introduction of Information Tec nology 9
2.1 Components of Information Tec nology 9
3. IT in banking sector 10
3.1 Advantages of Information Tec nology 11
3.2 Impact of IT on the Service Quality 12
3.3 Impact of IT on Banking System 13
3.4 Contribution of banking sector into 14
GDP:-
4 Conclusion 15



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„ bank is a finan ial intermediary that a epts deposits and hannels those deposits into
lending a tivities, either dire tly or through apital markets. „ bank onne ts ustomers with
apital defi its to ustomers with apital surpluses.

Banking is generally a highly regulated industry, and government restri tions on finan ial
a tivities by banks have varied over time and lo ation. The urrent set of global bank apital
standards are alled Basel II. In some ountries su h as Germany, banks have histori ally
owned major stakes in industrial orporations while in other ountries su h as the United
States banks are prohibited from owning non-finan ial ompanies. In Japan, banks are
usually the nexus of a ross-share holding entity known as the keiretsu. In I eland banks had
very light regulation prior to the 2008 ollapse.

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Standard a tivities
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Banks a t as payment agents by ondu ting he king or urrent a ounts for ustomers,
paying heques drawn by ustomers on the bank, and olle ting heques deposited to
ustomers' urrent a ounts. Banks also enable ustomer payments via other payment
methods su h as telegraphi transfer, EFTPOS, and „TM.

Banks borrow money by a epting funds deposited on urrent a ounts, by a epting term
deposits, and by issuing debt se urities su h as banknotes and bonds. Banks lend money by
making advan es to ustomers on urrent a ounts, by making installment loans, and by
investing in marketable debt se urities and other forms of money lending.

Banks provide almost all payment servi es, and a bank a ount is onsidered indispensable
by most businesses, individuals and governments. Non-banks that provide payment servi es
su h as remittan e ompanies are not normally onsidered an adequate substitute for having a
bank a ount.

Banks borrow most funds from households and non-finan ial businesses, and lend most funds
to households and non-finan ial businesses, but non-bank lenders provide a signifi ant and in
many ases adequate substitute for bank loans, and money market funds, ash management
trusts and other non-bank finan ial institutions in many ases provide an adequate substitute
to banks for lending savings too

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Banks offer many different hannels to a ess their banking and other servi es :
‡„TM is a ma hine that dispenses ash and sometimes takes deposits without the need for
a human bank teller. Some „TMs provide additional servi es.
‡„ bran h is a retail lo ation
‡Call enter
‡Mail: most banks a ept he k deposits via mail and use mail to ommuni ate to their

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Gustomers,
‡Mobile banking is a method of using one's mobile phone to GonduGt banki ng
transaGtions
‡Online banking is a term used for performing transaGtions, payments etG. over the
Internet
‡Telephone banking is a serviGe whiGh allows its Gustomers to perform transaGtions
over the telephone without speaking to a human
‡Video banking is a term used for performing banking transaGtions or professional
banking Gonsultations via a remote video and audio GonneGtion. Video banking Gan be
performed via purpose built banking transaGtion maGhines (similar to an „utomated teller
maGhine), or via a videoGonferenGe enabled bank branGh.

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‡Cheque aGGount
‡Credit Gard
‡Home loan
‡InsuranGe advisor
‡Mutual fund
‡Personal loan
‡Savings aGGount

Wholesale
‡Capital raising (Equity / Debt / Hybrids)
‡Mezzanine finanGe
‡ProjeGt finanGe
‡Revolving Gredit
‡Risk management (FX, interest rates, Gommodities, derivatives)
‡Term loan

1.4Types of banks

‡CommerGial bank: the term used for a normal bank to distinguish it from an
investment bank. „fter the Great Depression, the U.S. Congress required that banks only
engage in banking aGtivities, whereas investment banks were limited to Gapital market
aGtivities. SinGe the two no longer have to be under separate ownership, some use the term
"GommerGial bank" to refer to a bank or a division of a bank that mostly deals with deposits
and loans from Gorporations or large businesses.
‡Community banks: loGally operated finanGial institutions that empower employees to make
loGal deGisions to serve their Gustomers and the partners.
‡Community development banks: regulated banks that provide finanGial serviGes and
Gredit to under-served markets or populations.
‡Credit unions: not-for-profit Gooperatives owned by the depositors and often offering rates
more favorable than for-profit banks. TypiGally, membership is restriGted to employees of a partiGular
Gompany, residents of a defined neighborhood, members of a Gertain labor union or religious
organizations, and their immediate families.

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‡Postal savings banks: savings banks assoGiated with national postal systems.
‡Private Banks: banks that manage the assets of high net worth individuals. HistoriGally a
minimum of USD 1 million was required to open an aGGount, however, over the last years many
private banks have lowered their entry hurdles to USD 250,000 for private investors‡
Offshore banks: banks loGated in jurisdiGtions with low taxation and regulation. Many offshore
banks are essentially private banks.

‡Savings bank: in Europe, savings banks took their roots in the 19th or sometimes even in the
18th Gentury. Their original objeGtive was to provide easily aGGessible savings produGts to all strata of
the population. In some Gountries, savings banks were Greated on publiG initiative; in others, soGially
Gommitted individuals Greated foundations to put in plaGe the neGessary infrastruGture. Nowadays,
European savings banks have kept their foGus on retail banking: payments, savings produGts, Gredits
and insuranGes for individuals or small and medium-sized enterprises. „part from this retail foGus,
they also differ from GommerGial banks by their broadly deGentralized distribution network, providing
loGal and regional outreaGh²and by their soGially responsible approaGh to business and soGiety.

‡Building soGieties and LandesBanks: institutions that GonduGt retail banking.


‡EthiGal banks: banks that prioritize the transparenGy of all operations and make only what
they Gonsider to be soGially-responsible investments.
‡„ DireGt or Internet-Only bank is a banking operation without any physiGal bank branGhes,
GonGeived and implemented wholly with networked Gomputers.

Types of investment banks

‡Investment banks "underwrite" :- stoGk and bond issues, trade for their own aGGounts,
make markets, and advise Gorporations on Gapital market aGtivities suGh as mergers and
aGquisitions.
‡MerGhant banks were traditionally banks whiGh engaged in trade finanGe. The modern
definition, however, refers to banks whiGh provide Gapital to firms in the form of shares
rather than loans. Unlike venture Gapital firms, they tend not to invest in new Gompanies.

Both Gombined

‡Universal banks, more Gommonly known as finanGial serviGes Gompanies, engage in


several of these aGtivities. These big banks are very diversified groups that, among other
serviGes, also distribute insuranGe² henGe the term banGassuranGe, a portmanteau word
Gombining "banque or bank" and "assuranGe", signifying that both banking and insuranGe are
provided by the same Gorporate entity.

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‡Priority „GGount:-
„ serviGe that would ensure not only the highest level of priority but also preferential
treatment to seleGt Gustomers.

£
‡Priority „GGount ± NRI:-
Priority „GGount - NRI ServiGes, espeGially tailor-made for our disGerning NRI Clients.

‡Prime Saving „GGount:-


To simplify daily banking, your Prime Savings aGGount Gomes with an international photo-
signature Debit Card. This unique Gard Gomes with withdrawal limit of Rs. 40,000 per day,
faGilitating transfer of funds, deposits of Gash/Gheques and payment of insuranGe premium
(LIC).

‡Saving aGGount for Senior Citizens:-


Presenting, Bank's Senior Gitizen Savings „GGount. The aGGount is an endeavor by the Bank
to understand the Gonsumers' needs and redefine banking to suit your requirements for a truly
Gomfortable banking experienGe

‡Saving „GGount for Women:-


Presenting, Bank's women Savings „GGount. The aGGount is an endeavor by the Bank to understand
the Gonsumers' needs and redefine banking to suit your requirements for a truly Gomfortable banking
experienGe
‡Corporate Salary „GGount:
Bank Salary „GGount is a benefit-riGh payroll aGGount for Employers and Employees. „s an
organization, you Gan opt for our Salary „GGounts to enable easy disbursements of salaries
and enjoy numerous other benefits too.
‡Saving aGGount for trusts and NGOs:-
The Glamour for low-Gost funds had seen Bank paGkage a speGial savings aGGount to tap
entities suGh as temples, trusts, non-government organisations and eduGational institutions.
‡Term Deposits:
„ deposit held at a finanGial institution that has a fixed term. These are generally short-term with
maturities ranging anywhere from a month to a few years. When a term deposit is purGhased, the
lender (the Gustomer) understands that the money Gan only be withdrawn after the term has ended or
by giving a predetermined number of days¶ notiGe.
Term deposits are an extremely safe investment and are therefore very appealing to Gonservative, low-
risk investors. By having the money tied up you'll generally get a higher rate with a term deposit
Gompared with a demand deposit.
‡Online Trading:-
Online Trading has existed amongst people for ages and with the arrival of the internet,
online trading is the buzzword of the day. With the internet as a platform it is very easy to
trade in the instruments of your GhoiGe as and when you want. Gone are the days when you
aGtually had to make daily rounds of the stoGk exGhange or go to your broker. Now you need
not even make any Galls but Gan simply trade as and when you want by the GliGk of a mouse.
Here are several web sites online that allow you to trade on the stoGk exGhange or the
Gommodity exGhange or any other Gase.
‡Wealth Management ServiGes:-
Wealth management serviGes are provided by banks, professional trust Gompanies, and
brokerages. For those with sizeable assets [usually over $500,000], professional wealth

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management Gan help you plan your estate or invest your assets based on personal Griteria
and finanGial goals
‡Depository ServiGes:-
What is a Depository?
„ Depository is an organisation whiGh holds investors' seGurities in eleGtroniG form. The
depository also provides serviGes related to various transaGtions in suGh seGurities. „
depository interfaGes with its investors through Depository PartiGipants. Depository
PartiGipants maintain investors' aGGounts (demit aGGounts) whiGh are similar to Savings
Bank/Current aGGounts with a Bank. PurGhase and sale of seGurities Gan be done through
demit aGGount. Presently there are two depositories in India viz., NSDL (National SeGurities
Depository Limited) and CDSL (Central Depository ServiGes Ltd). Our Bank is a Depository
PartiGipant of NSDL.
Retail loans:-
„ wide range of solutions for your finanGial needs. Bank offers a wide range of retail loans to
meet your diverse needs. Whether the need is for a new house, Ghild's eduGation, purGhase of
a new Gar or home applianGes, our unique and need speGifiG loans will enable you to Gonvert
your dreams to realities.

Key produGts
1. Home Loan

2. Home Loans to NRIs / PIOs

3. Home Improvement Loan

4. Interest Subsidy SGheme for Housing The Urban Poor (ISHUP)

5.Loan against Future Rent ReGeivables

Mortgage Loan

6.„dvanGe „gainst SeGurities

7.EduGation Loan

8.Career Development Loan

9.„uto Loan

10.Two Wheeler Loan

11.Loan to DoGtors

12.Traders Loan

13.Personal Loan

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‡Resident Foreign CurrenGy „GGount:-
How to Open a RFC DomestiG „GGount

Choose the GurrenGy in whiGh you wish to operate.

Open your aGGount with an initial amount as per the following-US Dollar = 250 | Great
Britain Pound = 200 | Euro = 250 and maintain an „verage Quarterly BalanGe of the same amount.

Maintains a reGord of your foreign exGhange transaGtions through monthly statements.

Enjoy preferential rates when Gonverting your foreign GurrenGy into Indian Rupees.

ProteGts you from losing money due to exGhange rate fluGtuations

‡Travel CurrenGy Card:-


Bank's Travel CurrenGy Card aims to make traveling abroad a truly memorable experienGe.
„vailable off the shelf at your nearest Bank BranGh and seleGt FFMCs (Full Fledged
MoneyGhangers), the Travel CurrenGy Card is a seGure, Gonvenient and hassle free way to
Garry money and make payments when in foreign shores.

‡RemittanGe Card:-
Bank's RemittanGe Card is meant for people who reGeive remittanGes from abroad. It aims to
make the proGedure of reGeiving money from your loved ones abroad easy and hassle free.
Thereby rendering the age-old instruments like Demand Drafts and Pay Orders obsolete.

‡Credit Card:-
Gredit Gard is a small plastiG Gard issued to users as a system of payment. It allows its holder
to buy goods and serviGes based on the holder's promise to pay for these goods and serviGes.
The issuer of the Gard Greates a revolving aGGount and grants a line of Gredit to the Gonsumer
(or the user) from whiGh the user Gan borrow money for payment to a merGhant or as a Gash
advanGe to the user.

‡Current „GGounts:-
Current „GGount is primarily meant for businessmen, firms, Gompanies, publiG enterprises
etG. that have numerous daily banking transaGtions. Current „GGounts are Gheque operated
aGGounts meant neither for the purpose of earning interest nor for the purpose of savings


2. IntroduGtion of Information TeGhnology:-
Information TeGhnology or IT mainly deals with Gomputer appliGations. The Gommon work
environment today is totally dependent on Gomputers. This has led to the need to develop and
Gonsistently upgrade dediGated Gomputer software like projeGt management software, for a
number of related requirements. These inGlude storage and proteGtion of Gontent, proGessing
and transmitting of dediGated information and the seGured retrieval of information, when and
as required. IT promotes Gomputing teGhnology, Govering everything from installing
appliGations to developing databases.

2.1 Components of Information TeGhnology

‡Computers: Computers are very important in order to store and proGess data. Depending
on the size, Gost and proGessing ability, Gomputers are divided into four Gategories. They are
mainframes, superGomputer, miniGomputers and miGroGomputers (desktops or personal
Gomputers).

‡Servers: „ server is a Gombination of hardware and software, and is used to provide


serviGes to the Glient Gomputers. These serviGes generally inGlude storage and retrieval of
information. „ standalone Gomputer Gan also aGt as a server, provided it's running on server
operating system.

‡Database Management Systems (DBMS): Database Management System is basiGally


a set of software programs whiGh manages the storage and retrieval and organizes the
information in a Gomputer. This information is in the form of a database and is managed with
the help of softwares. The DBMS aGGepts requests from the appliGation program and instruGts
the operating system to transfer the appropriate data. There are various departments to
monitor the flow of information, whiGh inGlude System „dministrators, IT Managers,
Database „dministrators and Chief Information OffiGers (CIOs).

‡Networking: „ Gomputer network is a GolleGtion of Gomputers and peripherals GonneGted to


eaGh other through different modes. These modes Gan be wired or wireless. The network
allows Gomputers to GommuniGate with eaGh other (share information and resourGes like
printers, sGanners, etG.).

‡Network SeGurity and Cryptography: Network seGurity is one of the most important
aspeGts of information teGhnology. It Gonsists of all the provisions made in an underlying
Gomputer network, in order to prevent unauthorized usage of information. It also inGludes
implementing the poliGies adopted by the government and the appliGable Gyber laws. It is also
helpful in providing proteGtion from Gomputer haGking at the Gyber boundaries of an
organization.

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3. IT in banking seGtor:-
Banking environment has beGome highly Gompetitive today. To be able to survive and grow
in the Ghanging market environment banks are going for the latest teGhnologies, whiGh is
being perGeived as an µenabling resourGe¶ that Gan help in developing learner and more
flexible struGture that Gan respond quiGkly an effeGtive GommuniGation with people and
institutions assoGiated with the banking business.

The Software PaGkages for Banking „ppliGations in India had their beginnings in the middle
of 80s, when the Banks started Gomputerising the branGhes in a limited manner. The early 90s
saw the plummeting hardware priGes and advent of Gheap and inexpensive but high powered
PC¶s and ServiGes and banks went in for what was Galled Total BranGh „utomation (TB„)
paGkages. The middle and late 90s witnessed the tornado of finanGial reforms, deregulation
globalisation etG. Goupled with rapid revolution in GommuniGation teGhnologies and evolution
of novel GonGept of GonvergenGe of GommuniGation teGhnologies, like internet, mobile/Gell
phones etG. TeGhnology has Gontinuously played on important role in the working of banking
institutions and the serviGes provided by them. Safekeeping of publiG money, transfer of
money, issuing drafts, exploring investment opportunities and lending drafts, exploring
investment being provided.

Information TeGhnology enables sophistiGated produGt development, better market


infrastruGture, implementation of reliable teGhniques for Gontrol of risks and helps the
finanGial intermediaries to reaGh geographiGally distant and diversified markets. Internet has
signifiGantly influenGed delivery Ghannels of the banks. Internet has emerged as an important
medium for delivery of banking produGts and serviGes.

The Gustomers Gan view the aGGounts; get aGGount statements, transfer funds and purGhase
drafts by just punGhing on few keys. The smart Gard¶s i.e., Gards with miGro proGessor Ghip
have added new dimension to the sGenario. „n introduGtion of µCyber Cash¶ the exGhange of
Gash takes plaGe entirely through µCyber-books¶. ColleGtion of EleGtriGity bills and telephone
bills has beGome easy. The upgradeability and flexibility of internet teGhnology after
unpreGedented opportunities for the banks to reaGh out to its Gustomers. No doubt banking
serviGes have undergone drastiG Ghanges and so also the expeGtation of Gustomers from the
banks has inGreased greater.

IT is inGreasingly moving from a baGk offiGe funGtion to a prime assistant in inGreasing the
value of a bank over time. IT does so by maximizing banks of pro-aGtive measures suGh as
strengthening and standardising banks infrastruGture in respeGt of seGurity, GommuniGation
and networking, aGhieving inter branGh GonneGtivity, moving towards Real Time gross
settlement (RTGS) environment the foreGasting of liquidity by building real time databases,
use of MagnetiG Ink CharaGter ReGognition and Imaging teGhnology for Gheque Glearing to
name a few. Indian banks are going for the retail banking in a big way

The key driver to Gharge has largely been the inGreasing sophistiGation in teGhnology and the
growing popularity of the Internet. The shift from traditional banking to e-banking is
Ghanging Gustomer¶s expeGtations.

3.1 „dvantages of Information TeGhnology:


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The advantages of information teGhnology are many. True globalization has Gome about only via this
automated system. The Greation of one interdependent system helps us to share information and end
linguistiG barriers aGross the Gontinents. The Gollapse of geographiG boundaries has made the world a
'global village'. The teGhnology has not only made GommuniGation Gheaper, but also possible muGh
quiGker and 24x7. The wonders of text messages, email and auto-response, baGked by Gomputer
seGurity appliGations, have opened up sGope for direGt GommuniGation.
Computerized, internet business proGesses have made many businesses turn to the Internet for
inGreased produGtivity, greater profitability, Glutter free working Gonditions and global Glientèle. It is
mainly due to the IT industry that people from diverse Gultures are able to personally GommuniGate
and exGhange valuable ideas. This has greatly reduGed prejudiGe and inGreased sensitivity. Businesses
are able to operate 24x7, even from remote loGations.

Information teGhnology has rippled on in the form of a CommuniGation Revolution. SpeGialists in this
field like programmers, analyzers and developers are able to further the appliGations and improve
business proGesses simultaneously. The management infrastruGture thus generated defies all
boundaries. „mong the many advantages of the industry are teGhniGal support post-implementation,
network and individual desktop management, dediGated business appliGations and strategiG planning
for enhanGed profitability and effeGtive projeGt management.

IT provides a number of low-Gost business options to tap higher produGtivity with dediGated small
business CRM and a speGial Gategory for the larger operations. Regular upgrades have enabled many
businessmen to inGrease produGtivity and identify a market niGhe that would never have been possible
without the GonneGtivity. With every subsequent inGrease in the ROI or Return On Investment,
businesses are able to remain buoyant even amidst the eGonomiG reGession. Not only do people
GonneGt faster with the help of information teGhnology, but they are also able to identify like-minded
individuals and extend help, while strengthening ties.

This segment revolves around automated proGesses that require little or no human intervention at all.
This in turn has minimized job stress levels at the work plaGe and eliminated repetition of tasks, loss
due to human error, risks involved due to negligenGe of timely upgrades and extensive paper-intensive
business appliGations that result in the aGGumulation of unneGessary bulk. The sophistiGation of the
modern work stations and general working Gonditions is possible only due to the development of
Information TeGhnology.

1.‘ Speed and „GGuraGy in information ProGessing


2.‘ Safety
3.‘ Database
4.‘ Globalization
5.‘ ConGurrenGy Gontrol
6.‘ No Database repliGation
7.‘ No Data dupliGation
8.‘ Centralized Gontrol :

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The most visible impaGt of teGhnology is refleGted in the way the banks respond strategiGally
for making its effeGtive use for effiGient serviGe delivery. This impaGt on serviGe quality Gan
be summed up as below:

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Œ‘ With automation, serviGe no longer remains a marketing edge with the large banks
only. Small and relatively new banks with limited network of branGhes beGome better
plaGed to Gompete with the established banks, by integrating IT in their operations.
Œ‘ The teGhnology has Gommoditising some of the finanGial serviGes. Therefore the
banks Gannot take a lifetime relationship with the Gustomers as granted and they have
to work Gontinuously to foster this relationship and retain Gustomer loyalty.
Œ‘ The teGhnology on one hand serves as a powerful tool for Gustomer serviGing, on the
other hand, it itself results in depersonalising of the banking serviGes. This has an
adverse effeGt on relationship banking. „ deGade of Gomputerization Gan probably
never substitute a simple or a warm handshake.
Œ‘ In order to reduGe serviGe delivery Gost, banks need to automate routine Gustomer
inquiries through self-serviGe Ghannels. To do this they need to invest in Gall Genters,
kiosks, „TM¶s and Internet Banking today require IT infrastruGture integrated with
their business strategy to be Gustomer GentriG.

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The banking system is slowly shifting from the Traditional Banking towards relationship
banking. Traditionally the relationship between the bank and its Gustomers has been on a one-
to-one level via the branGh network. This was put into operation with Glearing and deGision
making responsibilities GonGentrated at the individual branGh level. The head offiGe had
responsibility for the overall Glearing network, the size of the branGh network and the training
of staff in the branGh network. The bank monitored the organisation¶s performanGe and set
the deGision making parameters, but the information available to both branGh staff and their
Gustomers was limited to one geographiGal loGation.

#‘  ‘

The modern bank Gannot rely on its branGh network alone. Customers are now demanding
new, more Gonvenient, delivery systems, and serviGes suGh as Internet banking have a dual
role to the Gustomer. They provide traditional banking serviGes, but additionally offer muGh
greater aGGess to information on their aGGount status and on the bank¶s many other serviGes.

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To do this banks have to Greate aGGount information layers, whiGh Gan be aGGessed both by
the bank staff as well as by th Gustomers themselves.

The use of interaGtive eleGtroniG links via the Internet Gould go a ling way in providing the
Gustomers with greater level of information about both their own finanGial situation and about
the serviGes offered by the bank.

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-.‘‘ ‘‘ /1‘‘#1‘‘

Data being stored in the Gomputers, is now being displayed when required on through internet
banking mobile banking, „TM¶s etG. all this has given rise to the issues of privaGy and
Gonfidentially of data are:

Œ‘ The data proGessing Gapabilities of the Gomputer, partiGularly the rapid throughput,
integration, and retrieval Gapabilities, give rise to doubts in the minds of individuals as
to whether the privaGy of the individuals is being eroded.
Œ‘ So long as the individual data items are available only to those direGtly GonGerned,
everything seems to be in proper plaGe, but the inGidenGe of data being Gross
referenGed to Greate detailed individual dossiers gives rise to privaGy problems.
Œ‘ Customers feel threatened about the inadequaGy of privaGy being maintained by the
banks with regard to their transaGtions and link at Gomputerised systems with
suspiGion.

„side from any Gonstitutional aspeGt, many nations deem privaGy to be a subjeGt of human
right and Gonsider it to be the responsibility of those who GonGerned with Gomputer data
proGessing for ensuring that the Gomputer use does not revolve to the stage where different
data about people Gan be GolleGted, integrated and retrieved quiGkly. „nother important
responsibility is to ensure the data is used only for the purpose intended.


%3‘4‘‘4 ‘$‘‘

‘
‘
‘
‘
‘


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Banking environment has beGome highly Gompetitive today. To be able to survive and grow
in the Ghanging market environment banks are going for the latest teGhnologies, whiGh is
being perGeived as an µenabling resourGe¶ that Gan help in developing learner and more
flexible struGture that Gan respond quiGkly a effeGtive GommuniGation with people and
institutions assoGiated with the banking business.

The Software PaGkages for Banking „ppliGations in India had their beginnings in the middle
of 80s, when the Banks started Gomputerising the branGhes in a limited manner. The early 90s
saw the plummeting hardware priGes and advent of Gheap and inexpensive but high powered
PC¶s and ServiGes and banks went in for what was Galled Total BranGh „utomation (TB„)
paGkages. The middle and late 90s witnessed the tornado of finanGial reforms, deregulation
globalisation etG. Goupled with rapid revolution in GommuniGation teGhnologies and evolution
of novel GonGept of GonvergenGe of GommuniGation teGhnologies, like internet, mobile/Gell
phones etG. TeGhnology has Gontinuously played on important role in the working of banking
institutions and the serviGes provided by them. Safekeeping of publiG money, transfer of
money, issuing drafts, exploring investment opportunities and lending drafts, exploring
investment being provided.

Information TeGhnology enables sophistiGated produGt development, better market


infrastruGture, implementation of reliable teGhniques for Gontrol of risks and helps the
finanGial intermediaries to reaGh geographiGally distant and diversified markets. Internet has
signifiGantly influenGed delivery Ghannels of the banks. Internet has emerged as an important
medium for delivery of banking produGts and serviGes.

The Gustomers Gan view the aGGounts; get aGGount statements, transfer funds and purGhase
drafts by just punGhing on few keys. The smart Gard¶s i.e., Gards with miGro proGessor Ghip
have added new dimension to the sGenario. „n introduGtion of µCyber Cash¶ the exGhange of
Gash takes plaGe entirely through µCyber-books¶. ColleGtion of EleGtriGity bills and telephone
bills has beGome easy. The upgradeability and flexibility of internet teGhnology after
unpreGedented opportunities for the banks to reaGh out to its Gustomers. No doubt banking
serviGes have undergone drastiG Ghanges and so also the expeGtation of Gustomers from the
banks has inGreased greater.

IT is inGreasingly moving from a baGk offiGe funGtion to a prime assistant in inGreasing the
value of a bank over time. IT does so by maximizing banks of pro-aGtive measures suGh as
strengthening and standardising banks infrastruGture in respeGt of seGurity, GommuniGation
and networking, aGhieving inter branGh GonneGtivity, moving towards Real Time gross
settlement (RTGS) environment the foreGasting of liquidity by building real time databases,
use of MagnetiG Ink CharaGter ReGognition and Imaging teGhnology for Gheque Glearing to
name a few. Indian banks are going for the retail banking in a big way

The key driver to Gharge has largely been the inGreasing sophistiGation in teGhnology and the
growing popularity of the Internet. The shift from traditional banking to e-banking is
Ghanging Gustomer¶s expeGtations.