Introduction Old banking system New banking system Conclusion References
“A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital market. A bank connects customers with capital deficits to customers with capital surpluses.”
PHASE 1 Early phase from 1786 to 1969 of Indian banks. PHASE 2 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. PHASE 3 New phase of Indian Banking system with the advent of Indian Financial & Banking Sector Reforms after 1991.
ACCEPTING DEPOSITS ISSUAL OF DEMAND DRAFTS GRANTING LOANS & ADVANCES UNDERTAKING SAFE CUSTODY OF VALUABLES,IMPORTANT DOCUMENTS & SECURITIES BY PROVIDING SAFE DEPOSIT VAULTS OR LOCKERS
DOCUMENTATION IS MAINTAINED THROUGH LEDGERS ONLY. MINIMUM BALANCE FOR OPENING AN ACCOUNT WAS MORE DURING THIS PERIOD. CREDITS WERE GRANTED AT VERY HIGH RATE OF INTEREST. TOKEN SYSTEM FOR WITHDRAWAL OF CASH FROM THE ACCOUNT.
POSSIBILITY OF HUMAN ERRORS . TIME CONSTRAINT. CUSTOMER RELATIONSHIP WAS LIMITED. OVER DRAFT WAS NOT AVAILABLE. PROCESSING FEES WAS CHARGED FOR ALL THE TRANSACTIONS . PASSING OF CHEQUES WAS DELAYED. LIMITED USE OF TECHNOLOGY.
WHY TECHNOLOGY IN BANKS ? TO TRANSFORM FINANCIAL SERVICES INDUSTRY IN THE NET- WORKED WORLD: -INCREASED OPERATION EFFICIENCY,PROFITABILITY & PRODUCTIVITY - SUPERIOR CUSTOMER SERVICE - PROVIDE SERVICES / PRODUCTS ACROSS A RANGE OF CHANNELS - TO BE FUTURISTIC AND HAVE “TIME” VALUE IN ALL ITS DEALINGS WITH CUSTOMERS -IMPROVED MANAGEMENT/ACCOUNTABILITY -BETTER CROSS SELLING ABILITY -MINIMAL TRANSACTION COST -IMPROVED FINANCIAL ANALYSIS CAPABILITIES.
Human Resource Business empowerment process Re- Engineering Planning for DisastersPre-requisites for Technology
CORE BANKING SOLUTIONS(CBS)“Pooling data at central server”CUSTOMER RELATIONSHIP MANAGEMENT(CRM)