This document discusses banking technology in India, including: 1) It outlines the evolution of banking technology from basic ledger posting machines in the 1980s-90s, to core banking solutions in the 2000s, to modern technologies like mobile/internet banking, analytics and cloud computing now. 2) It provides current statistics on digital transactions growth in India, with over a billion digital transactions processed monthly through systems like UPI and IMPS. 3) It examines trends shaping Indian banking technology, such as the increased role of regulators in promoting fintech innovation, the rise of digital-only banks, and new technologies around data, analytics and blockchain.

1. Banking Technology in India
Lalit Mohan S

2. Outline of the presentation
• Context of Banking in India
• Evolution of Banking Technology in India
• Current Statistics on Digital Transactions
• Trends in Indian Banking Technology
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3. Indian Banking Structure
Reserve Bank of India
Commercial
Public Sector
Private Sector
Small Finance
Payment
Foreign
Regional Rural
Cooperative
State Cooperative
District Central
Urban Cooperative
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Lending Institutions
 Primary Agricultural Cooperative Societies
 State Finance Companies
 Non Banking Finance Institutions
 Housing Finance Companies
Other Institutions
 NABARD
 SIDBI
 CCIL
 Academic and Research
 CAB
 IDRBT
 NIBM
 CAFRAL
 IGIDR

4. Technology Evolution in Indian Banking
1980-90
1991-00
2001-10
2011-Current
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 Advanced Ledger Posting Machine
 Total Branch Automation
 Core Banking Solutions
 Other Applications for Servicing
 Internet and Mobile Banking
 Data Warehouse and CRM
 Social Media, Mobile, Analytics
and Cloud Computing

5. Banking Application Architecture
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6. Payment Systems in India
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7. Indian Payment Systems – NEFT and RTGS
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 ½ hour Settlement for NEFT
 3 seconds for RTGS
 ISO 20022 Messaging
 Level playing field with
SWIFT as Global Competitor

8. Indian Payment System - UPI
8Made in India – Rupay and Switch

9. Digital Transactions Growth
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10. Transaction Growth since Nov’16 (in millions)
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SFMS – NEFT & RTGS, Internet, Wallet & Mobile
NPCI – IMPS, CTS, UPI, USSD

11. India’s largest Bank Comparison with largest Chinese
Bank and a US Bank with Similar Employee Strength
Category Wells Fargo Chinese Bank (ICBC) State Bank of India
Number of Customers 70 Million 530+ Million 420 Million
Number of Employees/Staff 273,000 + 461,749 278,000
Number of Branches 8500 16,429+ 24,000+
ATMs Count include Micro-ATM
and POS machines
13,000 ATMs 100,083+ ATMs 59,000+ ATMs
200,000+ POS and
Micro-ATMs
Number of Transactions (NEFT and
RTGS)
?? ?? 11,598,611
Number of IT Staff 25,000 + ?? ~ 2000-3000
Number of Facebook friends 1+ Million 600+ 13+ Million
Global Ranking 7 1 232
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12. Digital Banking and SMAC
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JAM
Jan
Dhan
Yojana
AadhaarMobile
Indian Banking Community Cloud
Analytics 
Social Media

13. FinTech Companies in India
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Security
• 2FA, Encryption, Biometric
Analytics
• Fraud Detection and Pattern Analysis
• Chatbots and Advisories
• Credit Scoring
• Reconciliation and NPA Prediction
• Originations
• Payday and P2P Loans
• Micro Analytics
Systems
• Microservices / API Banking
• IoT and wearables
• Omni
Personal Financial Management
Robotic Process Automation
Gamification, VR and AR
Usability
Blockchain

14. Regulator Role in Technology Promotion
• Dr Rangarajan Report
• RBI Vision document
• RBI Comments on Cloud Adoption
• Sandboxing, Application Contest,
Hackathons for FinTech
• Establishment of IDRBT –
• NPCI, CCIL, IFTAS
• Framework on Security, Digital Banking,
CRM, Cloud Computing, Social Media,
Green Banking, Vendor Management, etc
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Safegaurding
• IT Act
• NCIIPC
• CERT-In and FinCERT
• NATGRID
• FIU-IND
• ReBIT
• Cyber Security Policy
• IB-CART
• ISO 27001
• VAPT requirements

15. Technology Landscape of Banking Sector
• Services - TCS, Infosys, Wipro, Oracle, IBM, HP, etc
• Technologies
• Java and Unix (HP/IBM/Oracle) for Critical Applications
• Microsoft Technologies for Internal Applications
• Database – Oracle
• Slow in adoption of Open source
• Aggressively exploring Cloud technologies
• IT Management – COBIT, ITIL
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16. Questions ?
Thank You !
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17. References
• IDRBT Banking Technology Review – 2017 and 2016
• IDRBT Best Practices – Cloud FAQ, Digital Banking, Blockchain
• RBI and NPCI Stats
• PWC FinTech 2017 report
• Acknowledging multiple other sources that provided
pictures/diagrams
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