The banking sector is in a transitional mode moving towards a vibrant global market and sophisticated information technology. Due to this changing scenario, banks are paying more attention to expanding their activities from just lending and borrowing to other ends like, insurance merchant banking, leasing, electronic banking etc. Even though these changes were expected after the nationalization of banks in 1969, it was noticed that the progress was slow necessitating a total revamping of the banking sector. Various reform measures were taken to strengthen the foundation of the system by improving asset quality, enhancing capital and improving profitability along with structural changes in the system. During this transition, banks have seen fierce competition, risk, and revolutionary changes forcing them to take immediate steps to retain market share, redress the grievances of customers as fast as possible by maintaining good ambiance, rendering courteous services to customers with the help of latest technological innovations and products.
[...] These services rendered over electronic media include: Phone banking ATM Automatic Teller Machines Credit Cards Electronic Fund Transfer Shared Payment Network System SPNS Electronic Clearing Service - ECS Point of Sale POS D-Mat Accounts Electronic Data Interchange Cheque Corporate Banking Terminal Information Technology: The term “information technology” describes the phenomenon created by the convergence of technologies associated with computing, communication and office systems. In the past, most accounting procedures in banks were paper oriented. With the advent of new techniques like computers, electronic equipments and communication network, the modern accounting system have undergone a sea- change both in their preparation and presentation. [...]
[...] EFT assumes greater significance in the banking system as the RBI also encourages the commercial banks to adopt this technique. Inter and intra bank transfers of funds are now made through this EFT mechanism. Transactions of high value i.e., at least more than one lakh is now made through this cost effective and quick system of settlement. Normally, payments are made through cash, cheque, drafts and credit cards. The latest in this process are the debit card system, charge, digital cash, and electronic purse and so on. [...]
[...] GPS means the system, which enabled the precise navigation and targeting of many of the weapons used during the gulf war. E-Mail: The system of sending messages from one computer to another is known as mail. E-mail originally was introduced in the year 1983 in U.S.A. to send the messages through E-mail, a mini personal computer, one telephone line, a modern and software support is required. Modern is of various types like kotex, robotex, multi-moderna etc. the change for sending a message with 250 characters (bits) through E-mail is 0.0411847 USD for express it is 0.0825213 USD for foreign countries it is 0.0825213 USD per page. [...]
[...] EDI will very soon do away with branch banking and the customers will be identified as ban customer and not branch customer E-cheque: Digital cheques used by the payer to the payee through Internet are called e-cheque. Electronic versions of cheque are issued, received and processed. Most of the banks use e-cheque. A secure means of operation is provided for collecting, payments, and transferring cash flows through this method. The payer issues a digital cheque to the payee and the entire transactions are done through Internet Computerized Accounting: Development in computer has brought about a change in the accounting practices in banks. [...]
[...] Benefits of E-Banking Services It reduces cost of both in services and administration Overcoming the geographical barriers Cost minimized for customers It helps to maintain customer loyalty Web site enable banks to develop advertisement Information technology enable banks to deliver products and services Multimedia capabilities offer homogenous branding Online banking encourages promotion of various schemes of the bank Individualized and customized services with the help of integrated customer data Minimizing fraud and misappropriation by inter-branch reconciliation Convenience to customers like card free banking, cash free banking provides a domain of access to banking services. [...]
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