Summer Internship report on a project facilitated by Tejpal (Finance Intern from Savitribai phule pune university) under guidance of Mr. Rakesh Kumar Chadha, RBDM Head, Bank of Baroda,Regional office, Pune

1. A Project Report On
“Driving Use of Alternate Delivery Channels (ADC) without
Customer Disconnect”
Carried Out at:-
Submitted By:-
Tejpal
(Roll No. 16103)
MBA (Finance)
In Partial fulfilment for the Award of the Degree
MASTER OF BUSINESS ADMINISTRATION (MBA)
IN
FINANCE
Name of the Mentor:
Dr. Jayant Oke
DEPARTMENT OF MANAGEMENT SCIENCES
SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE
(2016-17)

2. SAVITRIBAI PHULE PUNE UNIVERSITY
CERTIFICATE
This is to certify that TEJPAL Student of MBA++
At Department of Management Sciences (PUMBA), Savitribai Phule Pune
University, has worked on an internship at Bank of Baroda, Pune on project
‘Driving Use of Alternate Delivery Channels without Customer Disconnect’
from June 1st
to July 30th
2017.
_______________ _________________________
(Mr. Jayant Oke) (Dr. Prafulla Pawar)
Professor Head of the Department
Internal Mentor Department of Management Sciences
Savitribai Phule Pune University

3. ACKNOWLEDGEMENT
I am really thankful towards all those people who helped me in this venture. It
would not have been possible without the kind support and help of many
individuals and organizations. I would like to extend my sincere thanks to all of
them.
I am highly indebted to Mr. Rakesh Kumar Chadha, Chief Manager (RDBM),
Regional office (Pune Region) Bank of Baroda for his guidance and constant
supervision as well as for providing necessary information regarding the project
& also for his support in completing the project. He was not only a mentor and
guided us with the project but he also provided help, motivation and learning’s
that could work out for us in the professional and competitive environment.
I would like to express my gratitude towards Additional External Mentor
Mr. Priyank Tiwari, Officer E.C.M, Regional office (Pune Region) Bank of
Baroda & also the other staff for their kind cooperation and encouragement which
helped me in completion of this project, specially my faculty guide Dr. Jayant
Oke who had always been helpful in need in the entire period. Discussions and
deliberations with them have enriched my knowledge to form my project in a
better way. I won’t be able to continue in compiling this text if they would not
have supported me.
I am and will be always thankful to our beloved H.O.D Dr. Prafulla Pawar for
his all-time support and for putting up with all the disruptions during Internship
caused by my involvement in this Corporation. My thanks and appreciations also
go to my colleagues in developing the project and people who have willingly
helped me out with their abilities.
I would not have succeeded in this process but for their help and support. I thank
you all from the bottom of my heart. I am really grateful to all of them in helping
me throughout my summer internship project which was completed successfully.
Place: Pune

4. Synopsis
Executive summary
In this study I explore the development of alternate delivery channels (ADC) in
Bank of Baroda’s Retail banking and forces that are shaping them up. A thorough
study of how these delivery channels work and the glitches & barriers present
currently in the implementation will be done. While going deeper and after
having some research especially on the needs of more urbane, demanding and
diverse customer base and I’ve identified how to drive the use of these delivery
channels without any type of disconnect from existing customers.
A review of how competitors are creating and adding value for the
customers will be done and then a strategic plan will be devised for creating
greater value for the customers and increasing the customer base for these
delivery channels, therefore, Finally a review of effectiveness will be conducted
thus evaluating the techniques applied. This report includes study of ADC in
retail banking used by Bank of Baroda. Going deeper it includes competitive
environment in Indian Banking Industry, Marketing Dynamics, Changing
consumer preferences. It also gives a roadmap on how this research will be taken
forward and the result be implemented, Alternative banking channels have a
direct effect on the profitability of commercial banks because various studies
indicate that these channels enhance the profitability of commercial banks. An
evaluation of published literature on the subject points to a strong connection
between alternative banking channels and the profitability of commercial banks.
Through reduced costs, convenience, high subscription rate, higher speed of
transactions and increased streams of revenue, alternative banking channels
enhance the profitability of commercial banks.

5. Index of Content
Cover Page..............................................................................................................1
Certificate................................................................................................................2
Acknowledgement...................................................................................................3
Synopsis & Executive summary.............................................................................4
Indian Banking Industry - An overview.................................................................6
Bank of Baroda – at a glance..................................................................................7
Objectives & Limitations........................................................................................8
Introduction.............................................................................................................9
Characteristics of Alternative Delivery Channels (ADC)....................................13
Unique initiative by Bank of Baroda (BoB).........................................................27
Recommendations for improvement.....................................................................30
Bibliography..........................................................................................................33

6. Tables & Figures
Committees Related to Use of IT in Indian Banking Industry..............................11
Figure (1.1) showing the Recent Shift of GoI towards cashless Economy..........13
Types of Alternative Delivery Channels (ADC)...................................................15
Figure (1.2) Computerization of Indian Commercial Banks...............................17
Figure (1.3) CBS diagram.....................................................................................18
Figure (1.4) ATM machine...................................................................................19
Figure (1.5) PoS terminal demonstration..............................................................20
Figure (1.6) Debit/Credit Cards............................................................................21
Figure (1.7) Comparative data related to Debit/Credit cards...............................22
Figure (1.8) Online & Mobile Payment methodologies.......................................23
Figure (1.9) Bank net Communication network...................................................24
Figure (2.0) Electronic clearing services..............................................................25
Figure (2.1) Example of MICR cheque................................................................26
Figure (2.2) BoB E-lobbies Actual image...........................................................28

7. Indian Banking Industry - An overview
Indian banking system is well regulated and sufficiently capitalised under the
guidelines of the reserve bank of India (RBI). Comparing the other economies in
the world Indian banking sector and economy are far superior. In global
slowdown Indian banking sector kept them well resisted as per the data shown by
the market and credit studies. Recently Indian banking system rolls out
innovative models like Small finance banks, payment banks and unified payment
Interface (UPI). As on April, 2017 there are 4 payment banks and 8 small
finance banks (SFBs).
The Indian banking system consists of 21 public sector
banks (Including SBI), 21 private sector banks, 43 foreign banks, 56 regional
rural banks, 1,574 urban cooperative banks and 93,913 rural cooperative banks,
in addition to cooperative credit institutions. Public-sector banks control more
than 70 per cent of the banking system assets, thereby leaving a comparatively
smaller share for its private peers. Banks are also encouraging their customers to
manage their finances using mobile phone. Government of India started the great
initiative under Pradhan Mantri Jan Dhan Yojna (PMJDY), under which 30.26
Crore accounts have been opened and 22.81 Crore RuPay debit cards have been
issued. These new accounts have Mustered deposits worth almost INR 66606.01
Crore (As on 31.08.2017). To facilitate an easy access to finance by Micro and
Small Enterprises (MSEs), the Government/RBI has launched Credit Guarantee
Fund Scheme to provide guarantee cover for collateral free credit facilities
extended to MSEs up to INR 1 Crore.
Moreover, Micro Units Development & Refinance
Agency (MUDRA) Ltd. was also established to refinance all Micro-finance
Institutions (MFIs), which are in the business of lending to micro / small business
entities engaged in manufacturing, trading and services activities up to Rs 10 lakh
(US$ 0.015 million). Continuation of reforms, expenditure on infrastructure
projects, clearance of stuck projects will robust the Indian economy and Indian
banking system. The Government of India has announced demonetisation of high
denomination bank notes of Rs 1000 and Rs 500, with effect from November 08,
2016, in order to eliminate black money and the growing menace of fake Indian
currency notes, thereby creating opportunities for improvement in economic
growth.RBI announced that out of INR 15.44 lakh cr. Total INR 15.28 lakh cr.
are back with scrapping of 500 & 1,000 notes, that equivalent to 99% of currency
in circulation.

8. Bank of Baroda – at a glance
A Saga Vision and Enterprise:
It has been a long and eventful journey of almost a century across 25 countries.
Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech
Baroda Corporate Centre in Mumbai is a saga of vision, enterprise, financial
prudence and corporate governance. It is a story scripted in corporate wisdom and
social pride. It is a story crafted in private capital, princely patronage and state
ownership. It is a story of ordinary bankers and their extraordinary contribution in
the ascent of Bank of Baroda to the formidable heights of corporate glory. It is a
story that needs to be shared with all those millions of people - customers,
stakeholders, employees & the public at large - who in ample measure, have
Contributed to the making of an institution (Baroda)
Mission:
To be a top ranking National Bank of International Standards committed to
augmenting stake holders' value through concern, care and competence (Baroda).
Bank of Baroda is the Indian state owned banking and financial service bank.
Bank of Baroda is the 2nd largest bank after state bank of India. Bank of Baroda
has headquartered in Vadodara and corporate office is in Mumbai. Bank of
Baroda is the 108 year old bank founded by Maharaja Sayajirao Gayakwad.
Along with the 13 other major banks on 19 July 1969 Bank of Baroda was
nationalised by the government of India. Based, it is ranked 801 on Forbes Global
2000 list. Bank of Baroda has total assets in excess of ₹ 3.58 trillion, a network of
5326 branches in India and abroad, and over 8000 ATMs.
BOB Capital Markets (BOBCAPS) is registered investment banking company
based in Mumbai, Maharashtra. It is a wholly owned subsidiary of Bank of
Baroda. Its financial services portfolio includes initial public offerings, private
placement of debts, corporate restructuring, business valuation, mergers and
acquisition, project appraisal, loan syndication, institutional equity research, and
brokerage.

9. Objectives & Limitations
Objectives: The major Objective why this project on Alternative Delivery
Channels (ADC) is carried out, are described below
 Find out the loopholes of existing Brick & Mortar Banking system
 Analysis of current available mediums of Banking & comparative study of
all channels with ADC
 Understand the importance of ADC and find the feasibility of Banking
beyond the branches concept
 To ascertain the Convenience & effects of revenue from alternative
banking channels on profitability of commercial bank
 To study the expectations of bank and their perspectives/ requirements
from the Rapidly growing ADC Service model
 To sort-out the problems and providing suggestion for ADC & Evaluating
the various parameters that influence the profitability of Banks
Limitations: Followings are the limitations of Alternative Delivery Channels
(ADC) are carried out, are described below
 The project has been carried out on the primary and secondary data which
have inherent limitation.
 The study is carried out on Pune, Maharashtra by considering equal
policies of bank and government thought India.
 While responding to the questionnaires the respondents have some
limitations or Hesitations and also Sometimes respondent don’t get enough
time to interact and respond to all the questions.
 The data sharing with bank have legal obligations so data obtained from
the bank is on general basis which may require series of authentications.

10. Introduction
Alternative Delivery channels
Alternative banking, as the name suggest, is the newer method of carrying on
banking operations, is the newer method of carrying on banking operations. It
includes all non-traditional means of banking such as ATM, internet banking,
bank automation, core banking, credit cards, debit cards, mobile banking, EFT
etc. According to IBM Global Services alternative banking is set of alternative
delivery channels1. Alternative distribution channels are not only important to
reducing costs and improving competitiveness, but also ability to retain the
existing customer case as well as to attract new customers. Mentioned that there
are six different alternative delivery chandelles of banking i.e. PC banking,
internet banking, managed network2, TV banking, Telephone banking and
Mobile phone banking. Association of Banks in Palestine (2009) defined as ―it
is conducting financial transactions electronically, without physically interacting
with the bank (i.e. using visa card, visa electron, internet banking, other).
However TV banking facilities are not available in India till date. Alternative
banking is alternative options for process banking transactions other than
traditional means. It is also known as e-banking, electronic banking, online
banking, virtual banking, direct banking and high tech-banking. According to
Howcroft alternative distribution channels provides convenient alternatives to
branch banking.
Recent service provision to customers, such as banking or retailing,
is now supported by a myriad of interactive technologies, such as the internet,
mobile applications, or interactive kiosks, leading to the emergence of
multichannel or multi-interface service systems. Technological innovations in
banking provide many efficient alternative delivery channels to customers. The
advance of communication and computer technology have made it possible that
one can do most banking transactions from a any location even without stepping
into a physical financial structure through alternative banking channels.
In the traditional banking system customers need to visit branch to
make transaction and getting information about banking services, account
information etc. But in the alternative banking there is no need to visit physical
branch most of banking transactions are possible through alternative channels. It
is also known as quasi-banking, alternative remittance systems, and parallel
banking. According to Devlin, Direct banking is the generic term that has been
adopted to encompass telephone and Internet banking, as well as interactive
television and most recently m-banking (banking using a mobile platform such as
a hand phone or personal digital assistant).

11. There is substantial evidence to suggest that e-banking is being embraced by
financial institutions in developed and emerging markets. There are two different
strategies has been adopted by banks for e-banking: First, an existing bank with
physical offices can establish a web site and offer alternative banking to its
customer as an additional delivery channel. A second alternative is to establish an
Internet-only bank or additional e-channels or virtual bank, almost without
physical offices. Recently in Indian followings alternative banking channels are
available IT-based service channel may significantly lower costs of serving
customers. The analysts forecast that 40% of adult UK consumers will be lured in
by the conveniences of online banking bringing the number to 22 million users by
2012. Internet banking allows customers to perform many banking functions
anytime and anywhere, while ATMs provide some services not possible by
internet banking, such as withdrawing money around the clock. The advent of
Internet, electronic commerce, communication technology and users ‘response to
this technology has opened opportunity for many businesses including the
financial institution.
History of alternative banking in India:
Information Technology (IT) has helped in increasing the speed and efficiency of
banking operations by facilitating the emergence of innovative products and new
delivery channels. The role of the Reserve Bank as the driver of technology
initiatives in the banking sector assumes greater importance given the challenges
posed by rapid advancements in technology. The Resave Bank of Indian has
played important role in implementation of information. In order to this intension
the RBI constituted several committees from time to time with different
objectives, headed by experts in different fields or academicians, some of them
during eighties and nineties. The Reserve Bank of India has appointed various
committees to implement ICT in Indian banking. History of the bank automation
traced with use of computer technology in India. The government of India has
established the Electronics Corporation of India (ECI) Ltd. in 1967 with the
objective of research & development in the fields of Electronic Communication,
Control, instrumentation, automation and Information Technology.
Entry of technology in the Indian banking industry can be
traced back to the Raganarajan Committee report, way back in the second half of
the 1970s. In 1979, the RBI has appointed the Talwar Committee on Consumer
Services in Banks’ and it recommended that, computerisation of some functions is
required to avoid delays in customer service in Indian banks. While automation
process has not tack off stage till 1993, because bank employees unions are not
agree with bank automation process they have fever about job losses. However,
in 1993, the Employees' Unions of Banks signed an agreement with Bank
Managements under the auspices of Indian Banks' Association (IBA) after job
assurance given by management.

12. Committees Related to Use of IT in Indian Banking Industry
Year Name of the Committee Chairman
1979
Committee on Consumer Services in Banks‘
R.K. Talwar
1982 Working Group to consider feasibility of introducing
MICR/OCR Technology for Cheque Processing Dr.Y.B.Damle
1984 Committee on Mechanisation in the Banking Industry Dr. C. Rangarajan
1987 Committees on Communication Network for Banks and
SWIFT implementation Shri T. N. A. Iyer
1988 Committee on Computerisation in Bank Dr. C. Rangarajan
1990 Committee on Customer Service in the Banks. M. N. Goiporia
1993 Ghosh Committee on Frauds and malpractices in Banks Shri A. Ghosh
1994 Committee on Technology Issues relating to Payments
System, Cheque Clearing and Securities Settlement in the
Banking Industry
Shri W.S.Saraf
1995 Committee for proposing Legislation on Electronic Funds
Transfer and other Electronic Payments
Smt.K.S.Shere
1991-
t1998
Narshimhan Committee (I and II) The Committee on
Banking Sector Reforms
Shree. R. Narshimhan
1996 Committee on Technology Up gradation In The Banking
Sector
A. Vasudevan
1998 S. H. Khan Working Group S. H. Khan
2000 Committee for Suggesting a Framework for Electronic
Benefit Transfer
R.B. Barman
2001 Working Group on Internet Banking S. R. Mittal
2001 Advisory Group on Payment and Settlement System M.G. Bhide
2001 Expert Committee on Legal Aspects of Bank Frauds N. L. Mitra
2002 Working Group on Electronic Money Mr.Zarir J. Cama
2002 Committee on Payment Systems Dr R H Patil
2003 Working Group on Cheque Truncation and E-cheques Dr R B Barman,
2004 Expert Group on Internet Deployment of Central
Database Management System
A. Vaidyanathan,
2005 Working Group On Regulatory Mechanism For Cards R. Gandhi
2007 The Working Group On Preparing Guidelines For Access
to Payment Systems
R.Gandhi
2008 The Working Group On Technology Upgradation Of
Regional Rural Banks Shri G. Srinivasan
2008 Working Group on IT support for Urban Cooperative
Banks
R.Gandhi
2009 The Working Group To Review The Business
Correspondent Model P.Vijaya Bhaskar

13. Digital program helped your bank to improve operational efficiency and it is a
major outcome that we expect. At one side it’s reducing the cost and the other
side its increasing the revenue. When Digital offers help to customers to conduct
their banking transactions simpler faster and friendlier, there is need for meeting
the customer needs on qualitative personalised financial service. Keeping this in
mind, bank is committed to continue to gives services to our esteemed customers
with the warmth of human touch. Our digital programs are naturally hovering
around the theme – India’s International Bank having all leading edge technology
aligned with world class Banking Trend. While moving fast on the digital
programs, your bank is giving adequate attention on security aspects and our
digital platforms are fully complied with all technical and regulatory security
measures. This enables our customers to use our digital channels confidently.
Thus our digital offers are a blend of authority to the client and control with the
Bank.
(1.1-Logo showing the Recent Shift of GoI towards cashless Economy)
“Banking through channels” is the new mantra for present day banks, which in
earlier times relied solely on the branch network to fulfil transactions, sell
products and acquire customers. In those days, expanding the business meant
adding more branches at high real estate and licensing costs. That problem has
been largely addressed by the invention of new low cost channels. What’s more,
channels like the ATM, Kiosk and Internet Banking have enabled banks to reach
a wide consumer base across geographies with little effort. The Internet and
mobile channels have also provided customers of wealth management products a
convenient mechanism to update their portfolios and receive information – for
example the price of a security or portfolio alert, Deposit or Withdrawal instant
text etc.

14. Characteristics of Alternative Delivery Channels
(ADC)
Reliability Network & Equipments – Alternative banking services are
highly depends on technology and high-tech communication system. For
the pursuing the e-banking services banks are using Information and
communication technology (Internet, mobile phone, telephone, other
electronic devises) But e-banking services are totally technology based
services.
24×7 Availability - Alternative banking portal are provides 24 hours
banking services. Customers can enjoy round the clock banking service
through the self-service banking modes. They have freedom from tense
about official time of bank.
Hierarchical Banking Model - Modern technology based banking
provides many alternatives to transact banking business through the
different channels e.g. ATM, core banking, Mobile banking, Internet
banking, Phone banking, POS terminals, Credit and Debit cards etc.
Inadequate P2P Communication - in the e-banking transaction there is
lacking face to face contact of customer and services provider. Customers
can use the banking services via virtual means of e-banking i.e. internet
banking, mobile banking, ATM, credit card etc. While Lack of face-to-face
contact is biggest obstacle to modern banking because right customer has
been identified by ID and password than face to face identification.
Factor of Insecurity - Despite of certain benefits of alternative banking
channels there are some certain risks e.g. Performance risk, Strategic risk,
financial risk, Compliance and legal risk, Reputational Risk, Operational
Risk there has been fear of inadequate security is one of the electronic
banking channels. There may be. So, it is clear that alterative banking
channels is lacking actually the assurance provided in traditional banking. -
The Electronic Data storage and interchange system also consist Data Risk.
Unauthorized access to the bank client‘s private information causes first of
all operational risk, but indirectly also legal as well as reputational risk.
Customer education on security risks and precautions can play an
important role for consumer protection and for limiting reputational risk.

15. Common Identity: E-banking services can‘t be separate from e-service
channels and even there is also inseparability in production and
consumption of the e-banking services. These services are being produced
at the same time that the customer is receiving it.
Uniformity in Nature: Formal services have a heterogeneity concerns the
potential for high variability in the performance of services is special
characteristics of the services it make difficult to establish standard.
However alternative banking services are homogenous of one specific bank
due to same types of channel and service specifications, while their actual
performance may be differ by place and speed of internet connectivity.
Cost effectiveness - Technology based banking services provide cost
effectiveness to customers and bank both. Banks can deliver banking
services through alternative channels at transaction costs far lower than
traditional ways. It has been proved that online banking channels are
cheaper delivery channel than traditional banking.
Wide Customer Base: Alternative banking allows expanded customer
contact through increased geographical reach and lower cost of delivery
channels. Argued that it provides borderless banking services throughout
the world where the internet connectivity is available.
Branchless banking – Alternative banking channels have reduced branch
networks and downsized the number of service staff. E-banking offer
freedom from place constraint, and reduced stress of queuing in banking
hall. Which has paved the way to self-service channels as quite many
customers felt that branch banking took too much time and effort. Virtual
banking offering any ware banking facilities
These are the major Dynamic leadings of Alternative Delivery channels (ADC)
that also works as a magnet to fetch the Financial Institutions (FI’s) to use them
on a relatively large extent to spread their Convenience, Flexibility, Easy to use
and user friendliness, Reliability, Fulfilment, Real time access, Cost
effectiveness, Alternative Options, Security & Privacy, Speed & Continuity,
Anytime and anywhere banking facilities.

16. Types of Alternative Delivery Channels (ADC)
According to a recent survey, the Electronic banking minimizes the cost of
transactions, saves time, minimizes inconvenience, provides up-to-date
information, increases operational efficiency, reduces HR requirements,
facilitates quick responses, improves service quality and minimizes the risk of
carrying cash. As per Report technology has reduced the cost of operation and
ways of the banking truncations with a desired satisfaction level.
Alternative Banking Channels
Serial
No.
Tradition
al Service
Alternative
Means
Medium Services available
1 Brick-Mortar services Automated
Branches
PC and
LAN
Instant deposit and withdraw
money, getting statement, DD,
calculation of interest etc.
2 Branch Banking Core Banking PC and
Internet
Instant deposit and withdraw
money, getting statement, cheque
clearance and depositing, stop
payment etc.
3 Manual Note Counting Note counting
Machines
Electronic
device
Instant notes and bundle of note
counting
4 Formal Cheque MICR cheque MICR
technology
Instant clearing of cheques
5 DD/MT/TT EFT Internet and
Core
Banking
Solution
(CBS)
Instant Fund Transfer from to any
branch under CBS
6 On counter Cash
Withdraw
ATM, Debit Card ATM Withdraw money, Balance Inquiry,
Account statement, Mobile
recharge, Make donation, Card to
card transfer, Utility bill payments
7 On counter Cash
Withdraw
ATM or Debit
Card
Point of
Sale
Terminals
(POS)
Mobile recharge, Purchasing,
Utility bill payments and Withdraw
money etc.
8 Letter of Credit E-Money Credit Card Purchasing and Payments of utility
bill payments
9 Branch Banking Internet Banking
(PC Banking)
PC and
Internet
Balance inquiry, account statement,
stop payment order, EFT,
purchasing, utility bill payment etc.
10 Branch Banking Mobile Banking Mobile
phone,
SMS,
WAP, 3G
Balance inquiry, account statement,
stop payment order, EFT,
purchasing, utility bill payment etc

17. Computerization of Indian Banking Sector –
In the early 1980s, a high level committee was formed under the chairmanship of
Dr. Rangarajan, the then Governor of Reserve Bank of India to suggest measures
for phased introduction of computers and mechanization of banking activities in
India. The reforms in the 1990s, which led to expansion, consolidation and
liberalization of the banking and financial sector in India, brought in many
changes and challenges. A number of private and foreign players entered the
Indian market with superior technologies that helped them service their customers
efficiently through multiple channels such as ATMs and online banking.
Indian banks on the other hand have been using IT more out of compulsion and
primarily for transaction processing. They now need to adopt IT to reposition
banks into the integrated financial services market. The need for providing
improved customer service, reducing transaction costs and increasing
productivity, shall be the main drivers for banking sector to adopt IT. These con-
siderations are particularly important for public sector banks in India, who are
facing immense competition from private and foreign banks
(1.2 - Computerization of Indian Commercial Banks)
Source: - www.rbi.org.in
With growing competition faced by foreign banks and financial institutions, the
public sector banks in co-operation with the Indian IT industry would need to
equip themselves for the next phase of introducing the benefits of IT to their
customers by providing a centralized banking solution. . It would also ensure
efficient management of Non Performing Assets (NPAs), minimize transaction
costs, enhance ability to conduct in-depth financial analysis and gather business
intelligence. Enhanced use of IT would also encourage the use of Internet to
provide access for online bill payments, funds transfers and e- statements in
addition to encouraging wireless mobile banking and e-commerce.

18. Role of Core Banking Solutions (CBS) –
The concept of CBS has helped banks become one-stop shops for all the financial
needs of retail and corporate customers by offering multiple services under one
roof. Thanks to CBS implementation, customers can now access their accounts
from any branch of their bank, irrespective of which branch the account was
opened at. These applications offer a single view of the customer and facilitate
automation across delivery channels. Core banking consists of a networking
process by which the servers of different branches of a bank are joined to a
common server and henceforth an account holder may access, deposit, and
withdraw money from his/her account from any of the branches of the bank. In
21st United States, core banking has become common place
CBS increases employee efficiency and reduces human error and fraud, it also
facilitates the correction of errors, and CBS adoption has given bank employees
the opportunity to strengthen their
relationships with customers.
According to a survey by Earnest
& Young, The number of public
sector bank branches in India with
CBS implementation increased
from 79.4% in March 2009 to
90% in March 2010.
(1.3 CBS diagram)
Few most renowned worldwide names of CBS providers are SAP, ApexBanking,
Neptune, Infosys Finacle, Temenos, Ericsson, Flexcube, Fiserv etc
Automated Teller Machines (ATM) –
The history of ATM can be traced back to the 1960s, when the first ATM
machine was invented by John Shepherd-Barron he was managing director of De
La Rue Instruments. That machine used by Barclays Bank in 27 June 1967. The
first working ATM was installed in a New York based Chemical Bank. The
machine was called a "Credit Card Automatic Currency Dispenser". Some
evidences claim that Westminister Bank installed first automated teller machine
at Victoria, London Branch in 1967.But the ATM industry has altered the Indian
banking landscape in almost last three decades earlier, with banks trying to
restructure themselves and reorient the entire banking sector. The first bank to
introduce the ATM concept in India was the Hong Kong and Shanghai Banking
Corporation (HSBC) in the year 1987. As a Indian bank, Bank of India was first
bank to introduced ATM in Bombay in 1988 followed by Vijaya Bank at Delhi in
1989 and then after almost of commercial banks have started their ATM facilities

19. According to Reserve Bank Of India (RBI) The number of total ATMs in India
As on 31st
May, 2017 now stands at 2,08,476 and the number is growing at a rate
of around 1000 ATMs
a month National
Payments Corporation
of India which
provides the central
infrastructure and
routing service
through National
Financial Switch
(NFS) can easily
handle 300 million
transactions a month.
(1.4 ATM machine)
According to a recent report by Retail Banking Research, the Asia Pacific region
is experiencing the maximum growth in the ATM industry, resulting in an
increased installation base of ATMs. The Western Hemisphere, particularly
Europe and North America, is also witnessing a change. The advancement of
ATM technology is quite rapid as it’s adjusting itself to the evolving consumer
needs. The developed nations are witnessing advancement in the industry, as
most ATM machines are being replaced by updated versions, and this is a sign of
financial advancement.
This is seen as a vital improvement as the whole
consumer experience is elevated, with a change in the design, aesthetics, and the
machine overall being more user-friendly. The future of the ATM industry is
governed by the emerging trend of white-label ATMs, especially in semi-urban
and rural areas with RBI playing an immense role in micro-financing and banking
outreach programmes, financial institutions have started focusing on financial
inclusion, and are motivating banks to be more adept to branchless channels. This
development is bound to influence banks to create new ways to attract more
customers and also to retain the existing customer base.
Point of Sale (POS) Terminal –
A Point of Sale (POS) terminal is an integrated PC-based device, with a monitor
(CRT), POS keyboard, POS printer, Customer Display, Magnetic Swipe Reader
and an electronic cash drawer all rolled into one16. More generally, the POS
terminal refers to the hardware and software used for checkouts kept at the
merchant's store. POS terminals are predominantly used for sale and purchase
transactions. According to the Information provided by Reserve Bank of India
(RBI) In India there are 26,92,986 as on 31st
May 2017 and major reason behind
this sudden increase in the use of PoS is the recent Demonetisation.

20. (1.5 PoS terminal demonstration )
While the number of point of sale (PoS) devices installed in the country is likely
to increase five-fold to 76 lakh in the next five years, according to a report.POS
terminals established in merchant establishments at the end of August 2009 was
only 217. Currently, most people use their debit cards to withdraw money from
ATMs. At present, the PoS penetration in the country is just about 16 lakh and
will grow at a compounded annual growth rate (CAGR) of 30%, according to the
study. The study found with over 74 crore debit and credit cards in India, there
were a huge potential for growth of PoS machines. The value of transactions can
reach ₹7.5 lakh crore by 2022 from ₹63,500 crore in 2016, it said.
However, Assocham noted that issues pertaining to factors like privacy,
security, trust and lack of complete integration of telecom infrastructure need to
be sorted out effectively as this was a major roadblock for the industry. It also
said though as of 2016, private banks accounted for 58% share in the total
number of PoS machines installed across India, this trend was likely to reverse in
the coming years as enterprises were shifting to public sector banks (PSBs).
Credit Cards –
Use of credit card is many countries of the world are quite old. But it has become
popular in Indian past one decade only. The origins of the bank credit card have
been traced to Johnc Biggins a customer credit specialist at the Flatbush National
Bank of Brooklyn, New York. In 1946, Biggins launched as credit plan called
―Charge it. The programme featured a form of script that was accepted by local
merchants for small purchases. After the sale was completed the merchant
deposited the scrip in the bank account and the bank billed the customer for the
total scrip issued.

21. A credit card system is a type of retail transaction settlement and credit system,
named after the small plastic card issued to users of the system. In the case of
credit cards, the issuer lends money to the consumer. Credit cards are the most
frequently used electronic payment instrument in the United States. These cards
combine a payment instrument with a credit arrangement. There were 20.5 billion
credit card transactions processed during 2000, valued at USD 1.5 trillion. Bank
credit cards are generally issued by a bank under a license from a national
organisation, such as Visa and MasterCard19, and typically involve a revolving
credit agreement. There are Four major service providers who are providing
technical services to banks to provide credit and debit card facilities worldwide
i.e. Visa, MasterCard. American Express, and Discover etc.
(1.6 Debit/Credit Cards)
As of 31 July, the outstanding number of credit cards was around 25.94 million,
according to data from the Reserve Bank of India (RBI). The number rose 18%
year-on-year while In July, outstanding credit card loans hit Rs42,900 crore, a
30% year-on-year increase. As of 31 August, credit card loans increased to
Rs43,100 crore, up 27% year-on-year. BoB has issued 1,33,654 Credit Cards out
of total 3,08,56,236 Credit cards as on 31st
May 2017 while SBI, HDFC, ICICI,
AXIS and CITY Bank has the following 48,07,860, 88,40,919, 43,10,531,
34,69,177 and 25,54,120 (Official data released on May, 2017 by RBI).
Debit Cards –
A debit card is a plastic bank card used at an ATM or a point-of-sale (POS)
terminal that enables a consumer to have funds directly debited from customers’
bank account. Some financial service providers (such as check cashers and
currency exchanges) may market a so-called debit card that is not tied to a deposit
account but instead functions as a stored-value card

22. There are two types of debit cards: Online and off-line debit card
Online debit card require the card to be present with the cardholder entering a
PIN to complete the sale while Offline debit card transactions may or may not be
authorized against the cardholder. However, now most of banks are providing
online debit cards. Use of card based payment system was introduced during
1960s in India. While as a branch of Diners Club Card in August 1980 credit card
facility was provided by Central Bank of India as Master Card. Then Andhra
Bank has issued a credit card in 1981 with linkage VISA and Japan Credit Bureau
International (JCBI). In India card fashion increasing day by day due to its
convenience and utility. Many banks have providing customised credit and debit
cards to increase their business in India. Most of banks are using VISA,
MasterCard technology to provide cars services
(1.7 Comparative data related to Debit/Credit cards)
However the card base as well as the usage has picked up during the last five
years drastically. In the year 2003 to 2010 credit card based transaction are
increased from 17,662.72 crore to 62,881.83 crore and debit card based
transactions are increased from 4,873.67 crore to 18,547.14 crore. Because of
increased use and transaction trough credit cards in India. The RBI has issued
new guidelines to issue credit cards in India as per notification date 1st July 2009
to insure credit card fraud and customer protection.
Payment Gateways in India –
Payment systems are the means by which funds are transferred between a payer
and a beneficiary. It has importance for the functioning and integration of
financial markets. It influences the speed, financial risk, reliability and cost of
domestic and international transactions. The evolution of modern payment
systems was characterized by computerization of clearing operations. Securities
Exchange Board of India (SEBI) has included NEFT and RTGS payment system
to the existing list of methods that a company can use for payment of dividend or
other cash benefits to their shareholders and investors

23. The other significant milestones in the development of the payment systems were
magnetic image character recognition (MICR) based mechanised cheque
processing technology in Mumbai (1986), Chennai, New Delhi (in 1987) and
Calcutta (1989). To reduce the pressures on the cheque clearing and settlement
process, and to improve customer service (especially for high volume, low value
clearing,) the central bank introduced an electronic clearing service (ECS) credit
scheme and the ECS debit scheme to facilitate payment of charges to utility
services. The modernization of the payment system in line with the global
standards was implemented as a part of the reforms of the financial system. It
includes followings transactions –
 The Inter-bank Clearing System
 The Securities Clearing and Settlement System
 The MICR Clearing System
 The Government Securities and Foreign Exchange Clearing Systems
 The Real Time Gross Settlement System (RTGS)
 The National Electronic Funds Transfer (NEFT)
 The Immediate Payment Service (IMPS)
 The Retail Card Based Clearing System
(1.8 Online & Mobile Payment methodologies)
An efficient and stable payment system is the backbone of any economy.
Recognizing the importance of payment systems in the financial system, the
Reserve Bank of India has taken a number of steps to strengthen the institutional
framework for the payment and settlement systems in the country. The
emergence of e-commerce has created new financial requirements that in many
cases cannot be effectively fulfilled by the traditional payment systems. The
efforts of the Reserve Bank have been to ensure full compliance to the core
principles of BIS. The improvement in payment systems in India has facilitated
the integration of financial markets. For recognizing these needs the RBI has
implemented bank computerisation project in India and providing ICT based
networking facilities to the banks and financial institutions in India.

24. BANKNET –
It’s an internet based communication network backbone. It provides speed of
financial transaction. At present, seven centres viz. Mumbai, Delhi, Calcutta,
Madras, Nagpur, Bangalore and Hyderabad. It is set up in 1991 by the RBI, this
backbone is meant to facilitate transfer of inter-bank (and inter-branch) messages
within India by Public Sector banks who are members of this network.
(1.9 Bank net Communication network)
This project has been implemented in two stages e.g. BANKNET-I and
BANKNET-II, now more centres like Pune, Ahmadabad, Kanpur, Lucknow,
Chandigarh, Kochi, Jaipur, Bhopal, Patna, Bhubaneshwar, Thiruvananthapuram,
Guwahati, Panajim, Jammu etc are being brought on the network
SWIFT –
Society for Worldwide Inter-Bank Financial Telecommunication (SWIFT),
Brussels is a co-operative society for interbank financial networking, is
established in May 1973 with 239 participating banks from 15 countries. Actually
it started functioning in 1977, and Albert, Prince of Belgium and now King, sends
the first message. The initial group of members has grown to 518 commercial
banks in 22 countries. SWIFT‘s regional office is located in Mumbai (India).
India is 74th country joined SWIFT network in 2nd December 1991. The Reserve
Bank of India, 27 public sector banks and 8
foreign banks are initially taken
membership of SWIFT now 92 banks are
member of SWIFT. SWIFT has transferred
Indian user to SWIFT net (IP based
solution for messaging) since July 2004, it
is a new service of the SWIFT. Now more
than 9,000 banking organisations, securities
institutions and corporate customers in 209
countries trust us every day to exchange
millions of standardised financial messages. Swift facilitate the members to
transfer messages relating to financial transaction, debit-credit exchange, and
foreign exchange. SWIFT enables its customers to automate and standardise
financial transactions, thereby lowering costs, reducing operational risk and
eliminating inefficiencies from their operations.

25. Electronic Clearing Service –
To solve critical problem of hug clearing transaction in April 1968 the clearing
banks set up the Inter-Bank Computer Bureau, latter to become a separate
company known as ―Bankers Automated Clearing Service-BACS‖. Now, there
is MICR, ECS debit and Credit clearing services and National Electronic
Clearing services are now available to bankers and customers both as clearing
mechanisms. ECS Scheme operated by the RBI since 1996-97, a new variant of
ECS styled National Electronic Clearing Service (NECS) was introduced in
September 2008.
(2.0 Electronic Clearing Services)
ECS (Credit) facilitates the bulk payments whereby the account of the institution
remitting the payment is debited and the payments remitted to beneficiaries'
accounts. In India it is mostly known as pay unit system provided by banks to
employers. This facility is now available at 86 major centres in the country. ECS
(Debit) is automated method of payment which provides an option to pay
monthly/quarterly/half-yearly/yearly interest/dividend/salary/pension utility bills
like telephone, electricity, loan instalments, insurance premium etc directly
through customers’ bank account. The RBI report shows that there is significant
growth in the ECS transaction in India since its inception. ECS (Debit) is
automated method of payment which provides an option to pay
monthly/quarterly/half-yearly/yearly interest/dividend/salary/pension utility bills
like telephone, electricity, loan instalments, insurance premium etc directly
through customers’ bank account.
MICR cheque clearing service –
MICR (Magnetic Ink Character Recognition) is the technology to reading and
identification of paper documents by electronic machines. MICR is a character
recognition technology used primarily by the banking industry to facilitate the
processing of cheques. MICR technology was first demonstrated to the American
Bankers Association in July 1956, and by 1963 it was almost universally
employed in the U.S. The MICR scanning machine can scan the MICR cheque
and read their data and convert in digital form and send that information to
service computer of the bank to further clearing operation. It make easy clearing
and sorting of thousands of cheques. Hyderabad, Bangalore, Ahmadabad,
Kanpur, Jaipur, Nagpur, Baroda, Pune, Guwahati, Trivandrum etc. Now most of
banks are issuing the MICR cheques to their customers

26. (2.1 Example of MICR cheque)
First set of number is cheque number, second set of numbers related to city, bank
and branch name it helps a bank to recognize the bank and branch that issued the
cheque, city of the bank where bank office located. The third set of six digit
numbers represents customers account number. In the case of Government
Cheques issued by RBI alone, the account number is of seven digits and set of
number consisting two digit is transaction code, in case of government cheque it
have three digits. Transaction code shows type and mode of transaction given.
Internet banking –
Till 1993 internet was dose not used commercial purpose but after 1993 internet
has used as tool of commerce and trade. Internet banking began in 1993 the office
of the Thrift Supervision Chartered Security First Network Bank (SFNB) in
Atlanta (Georgia) and it opened for business in October 1995. In 1998 it was
acquired by the Royal Bank Financial Group, Canada. Internet banking not
limited to the USA many banks in the developed and developing countries are
using this technology. In India, ICICI Bank Ltd. was started internet banking
service in 1997 as brand name ―Infinity. BoB has Internet Banking platform
named Baroda Connect, which has been enriched with multiple features to
provide ease of use and better control for our customers. However, of late many
public sector banks and scheduled commercial banks have taken a led in this area.
Internet or web based banking is network of banks and financial institutes as well
other sealers.
It provides electronic payments and settlement services to customers. It
implies the most pragmatic use of information technology as medium of universal
communication. It has brought unprecedented changes in banking industry. There
are high increase indicates in internet users in India. According to market
research organization like Internet and Mobile Association of India (IAMAI),
Live Mint and Internet World.com “Urban India with an estimated population of
444 million already has 269 million (60%) using the Internet. Rural India, with an
estimated population of 906 million as per 2011 census, has only 163 million
(17%) Internet users. Thus, there are potential approximately 750 million users
still in rural India who are yet to become Internet users; if only they can be
reached out properly.”

27. Mobile banking –
Mobile banking is simply application of mobile (Cell) phone dives as mean of
banking via Wireless Application Protocol (WAP) technology and short message
service (SMS) facilities. Mobile financial services are a term applied to a range of
financial activities conducted using mobile devices, such as cellular phones or
personal digital assistants. According to a Anonyms the concept of mobile
payment originates in Finland. Sonera, a telecommunication company in Finland,
released a mobile payment system named Sonera Mobile Pay (SMP) in 1999. In
Germany a cellular payment service named Pay Box started in 2000 to online
shopping. Mobile banking users are projected to reach almost 35 million by 2010.
In order to demand of mobile divides to use in m-banking almost of cellular
device developer companies alike Ericsson, Motorola, Nokia, LG, Siemens,
Samsung, Sony etc. are developing their mobile handset according to m-banking
requirements. Most recent handsets are enabled with CDMA, GSM, WAP, 3G,
SMS, MMS, JAWA, GPRS, Bluetooth, Infrared, and windows also.
Mobile banking has not widely accepted in India but there is significant growth
found in recent years after spread of mobile network. Since 1995, there is found
tremendous growth in mobile users in India. There are 1.18 billions of peoples
are using cellular services in India‘s various states and union territories (Live
mint). The average annual growth rate of subscriber base is 40.17 per cent in
2011. As per changing
scenario, Indian banks
offering mobile
banking services to
their retail and
corporate customer.
Now mobile banking
is the hottest area of
development in the Indian banking sector and is expected to replace the credit
and debit card system in future. In past two years, mobile banking users have
increased three times if we compare the use of either debit card or credit card. Till
June 30, 2009, 32 banks had been granted permission to operate Mobile Banking
in India, of which 7 belonged to the State Bank Group, 12 to nationalised banks
and 13 to private / foreign banks23. The RBI has adopted Bank Led Model in
which mobile phone banking is promoted through business correspondents of
banks. While BoB has completely revamped Mobile Banking application “M-
connect plus” with a 360 Degree view of Customer Accounts, has been launched
this year which provides a robust, secure, and scalable and feature rich innovative
experience to our customers. Mobile Wallet - In our pursuit to enhance customer
convenience, our Bank has launched “Baroda M-CLIP”, our Bank’s Mobile
Wallet in July 2016. This is a simple, secure and easy to use mobile application
for Online Purchases. Features are Person to Person (P2P) fund transfer,
Mobile/DTH/Data Recharge, Gift cards of various brands, bill payments and
other such needs.

28. Unique initiative by Bank of Baroda (BoB)
Apart from the above mentioned means of Alternative delivery channels BoB has
following state-of-the-art apps and mechanism of its own described below
E-Lobbies –
which are being
christened as ‘Me
Lobby’ having upgraded
facilities, which
includes Baroda Non-
Stop Lobby comprising
five self-service
machines viz. Cash
Recycler, ATM, Multi-
Function Kiosk,
Passbook Printer and
Digital Signage System
for providing 24x7
banking services. Bank
has also introduced “Baroda Express – 24X7” lobby, which is a lean version of
the Baroda Non-Stop Lobby for smaller centre by refurbishing the existing ATMs
and providing additional services such as Cash Recycler and Passbook Printer.
Bharat Bill Payment System (BBPS) - This is an initiative of national
importance which offers real time bill payment service to customers/ non
customers across geographic and demographic
lines. BBPS is a tiered platform wherein our
Bank participates as Customer Bharat Bill
Payment Operating Units (Customer BBPOU)
through various channels. BBPS is a simple,
secure and easy to use bill payment platform
which offers interoperable and accessible bill
payment services to customers with instant
confirmation of receipt of payment.
(2.2 BoB E-Lobbies Actual)

29. Digital portable branches –
The Bank has evolved an innovative concept of pre-fabricated banking outlet
equipped with Self Service machines to meet routine customer requirements and
space for 2-3 officials/ BCs for a face to face interaction/ handholding.
These outlets are highly secure, conducive to varying weather conditions and are
conceptualised to offer 24x7 convenient banking facilities. Self Service machines
are designed to offer Instant Account opening, Debit Card dispensation, Cash
withdrawal, Passbook updating, Funds transfer, Utility Bill payment, Account
based enquiry services etc.
Bank opened the First Digital Portable Branch in September 2016 at
Bhagesara Village in Pratapgarh District, located In the Sultanpur Region in the
state of Uttar Pradesh. This Digital Branch has the state-of-the art digital
technology Available for usage of the residents in the hinterland – an Automatic
Account Opening Machine, a Pass Book Printer and an ATM. This innovative
initiative of our Bank has been lauded by the local people and is being expanded
further in this financial year. This was achieved on the back of well co-ordinated
team work given the leadership of our Zone, Region and Branch office in Eastern
UP, supported by the Corporate Office departments including Digital Banking,
Facilities Management and Technology.

30. Internet Payment Gateway –
The Bank is in the process of
owning the entire Internet
Payment Gateway
infrastructure, to provide an
electronic payment platform
Baroda E Gateway to its
merchants for e-commerce business by enabling payment collection using credit
card/ debit card and net banking.
Global Contact Centre –
Bank has also operational
state-of-the-art Contact Centres
at GIFT City, Gandhinagar as
well as at Bangalore. The
Contact Centre provides most
of the banking services through
the telephone channel through
a Toll Free Number from
anywhere in the country and
globe. A dedicated hotline has
been provided for Pradhan
Mantri Jan Dhan Yojana
(PMJDY) and other Financial
Inclusion customers

31. Recommendations for Improvement
Bank of Baroda is among India’s top PSU Banks as per following picture
Alternative Delivery channels (ADC) involves the various mediums such as
ATM, Internet Banking, Mobile Banking, E-wallet, Kiosk etc. To achieve the
growth in this sector there should be the collaborative efforts of all the mediums
which directly or indirectly the part of these industries. We have seen the
challenges and growth driver of ADC sector now here are the suggestions for
increasing the output of the sector for all of those who are the part of these
industries. The following suggestions are drawn from the interactions& Analysis
with the Customers, bankers and experts etc. These suggestions will help to
increase the effectiveness and productivity of the different criteria.
 Use Bio-metric (iris/Thumb impression) based app for hassle free &
Secure transaction as of now the all the four available app like Baroda M-
clip, Baroda m-connect plus, Baroda MPay & Baroda Rewardz app are
currently running only on Id and password basis while it’s time to enhance
the security level.
 Bitter reality of BoB I’ve felt there during Internship is that except IT and
Financial Inclusion department the staff from rest of the departments itself
is likely unable to use BOB apps on their own self so before taking the
initiative of Digital literacy to Pan India level please start a campaign or
internal level competitions to ensure the digital knowledge of BoB
employees first.
 Mobile banking/Internet banking/UPI etc apps must be less space
consuming and capable of working even on 2G network so we can have
wide customer base including rural area also where there is no high speed
connectivity available.
 Various Digital literacy drives & campaign must be carried out especially
in rural and Semi-urban areas to educate the people about the recent trends
and innovations in financial and banking sector.
 Instead of opening small branches at remote location, open the E-Lobbies
equipped with ATM, CDM, Passbook printing machines and self servicing
kiosk etc with at least one operator to guide the users hence it would be
cost effective and more return oriented.

32.  If the bank decide to open Off-site
ATM then Pre-occupied shop or
places must be preferred rather than
opting for full area wholly as if pre-
occupied area would be chosen it
neither require safety guard nor any
Air conditions need to be install and
very less amount hast to be paid to the
owner for taking care of our
investments, while on other hand if
bank will acquire the whole area it
would definitely be more costly.
 As keep pace with the latest technological changes & for high end
customer’s accessibility and optimum convenience all the apps must be
available on Smart watches also because Smart watches is latest yet rapidly
growing alternate of smart phones.
 To fetch more & more customers towards our Banking apps BoB need to
start giving Rewardz points or discounting schemes to those who install the
apps for very first time.
 Each app has also some referral benefits so that our existing customers
would also be work as a advertising medium for us and they can make the
other individual a part of our banking facilities while in return they
(existing customers) can also earn good return in form of referral benefits.
 As per a recent banking research report more than 70% of bank customers
are not interested in purchase of Investment & Banking services firstly
offered to them over Electronic mediums rather they would like to meet an
expert or analyst individually before availing any service or product for
first time
 One major drawback why Bank of Baroda is lagging behind from some
other banks (specifically in terms of ADC popularity) is that while almost
every Public and private bank have chosen at least one well known
personality from sports, Acting, Singing, Dancing, Comedy, culture or any
fictional character and utilising their full potential to reach to the wide
customer base.

33.  When IRIS authentication (Biometric authentication linked with Aadhar
server) will be on, the 900 million mobile users will be able to have online
KYC, online authentication, online payment and online receipt on the basis
of Unified Payment Interface (UPI). Smart phone will replace all type of
debit and credit cards and Paytm like system will be fully operational
(according to Mr. Nandan Nilkeni generator of the concept of Aadhar )
Physical cash to digital cash and digital cash to physical cash convertibility
will be a game changer. Digital wallet and digital locker will revolutionize
the security system. Enabling pear to pear payment system will do away
many intermediaries and will be reimagining the infrastructure we have at
present, hence BoB need to prepare for it in advance and take the necessary
steps in advance.
 For Cost cutting and better
innovative approach BoB should
shift from existing POS terminal to
Mobile POS which is the machine
having Bluetooth connectivity and
connected to any phone or Tab via
3.5 mm regular jack and convert it
into POS
If the BoB will consider these suggested steps & do the corrections into them if
required and apply them, definitely it would lead the institution towards slightly
advantageous edge among the other competitors. Hence the Bank would also gain
cost cutting as well as cover the untapped market segment i.e. to provide the
banking at doorsteps via ADC to High net worth individual who generally don’t
have enough time to visit the branches and the Un-educated rural customers who
are willing to avail the banking facilities but due to hesitation, complicated
banking terminology and digital illiteracy they feels embarrassed to visit the
banks so via effective use of ADC the BoB can also cover them and play it’s role
toward the digital literacy mission.

34. Bibliography-
https://www.rbi.org.in/commonman/English/Scripts/BanksInIndia.aspx
Commerce, M. o. (2016). Annual Report. New Delhi: Ministry of Commerce and Industry.
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www.pmjdy.gov.in
The Reserve Bank of India(http://www.rbi.org.in/scripts/PublicationsView.aspx?id=162)
http://www.thehindu.com/business/Industry/point-of-sale-devices-set-for-huge-growth-study
http://www.livemint.com/Industry/9cIOgFapGm3PlbPw1EB5DL/Number-of-credit-cards-in-India-
seen-growing-to-record-30-mi.html
https://www.rbi.org.in/scripts/ATMView.aspx?atmid=75
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