Technological Innovations in Indian Banking Sector-A Trend Analysis
The role of Banking has changed drastically over the last two decades. It has been going under a never-before transformation adapting to new technologies and products of global standard and becoming a part of the International Financial System. It can be seen and realized that the major technological and product innovations have taken place in past two decades in India promoting various schemes, new technology and what not. The entry of foreign and private players in India after the Liberalization, Privatization and Globalization in 1991, has made this industry tremendously competitive in nature. Even now, banking is one of the fastest growing sectors in the economy of India. During last 20 years, Indian Banking System has witnessed some major financial innovations with an aim to take banking services from class banking to mass banking. The notable innovations taken place in the banking sector of India are introduction of CBS, CTS, ECS, RTGS, EFT, NEFT, ATM, Debit & Credit Cards, Internet Banking, mobile banking etc. Though cash is still the most dominant mode of payment in Indian Banks but the advancement in technologies has improved the ratio of cash & paper based payment system and cashless & electronic payments. The various noncash mode of payments are Debit Card, Credit Card, ECS (Debit & Credit), CTS, EFT/NEFT and RTGS. This study is about the technological innovations that are taken place in Indian banking sector and how it has led to the changing trend from cash to cashless payments for the easy, efficient and quicker customer service.
CBS, CTS, RTGS, EFT/NEFT, Technology Innovation.