Abstract

In the 1990s, the banking sector in India saw greater emphasis being placed on technology and innovation. Banks began to use technology to provide better quality of services at greater speed. Internet banking and mobile banking made it convenient for customers to do their banking from geographically diverse places. Banks also sharpened their focus on rural markets and introduced a variety of services geared to the special needs of their rural customers. Banking activities also transcended their traditional scope and new concepts like personal banking, retailing and banc assurance were introduced. The sector was also moving rapidly towards universal banking and electronic transactions, which were expected to change the way banking would be perceived in the future.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine the development of the banking system in India and understand the changes occurring in it.
• Understand the need for innovations in banking to create greater value for customers and enhanced efficiency for the banks.
• Appreciate the role of technology in increasing the convenience of customers and improving banking operations.
• Study the banking needs of rural India and the initiatives taken up by banks to cater to these needs.
• Analyze the changes occurring in the Indian banking sector and how these changes are likely to influence the way banking will be done in the future.

Keywords

Real Time Gross Settlement (RTGS),Total Branch Automation (TBA),Internet Banking,Automatic Teller Machines (ATMs), Banking Kiosks,Mobile Banking,Kisan Credit Card (KCC),Microfinance,Self Help Groups,Personal Banking,Retail Banking,