E-BANKING IN INDIA: PAYMENT AND SETTELMENT SYSTEM

Volume : VIII, Issue : IV, April - 2018

Dr. Basanti Verma

The economic development of any Country depends on the extent to which its financial system efficiently and effectively

mobilizes and allocates resources. There are number of banks and institutions that perform this function. For sound and

effective banking system E–banking has become the necessity these days. The technology and security Standards are of Prime importance as the

entire base of Internet banking rests on it. Also the Competition has increased to such an extent that the one who is not compatible with the

changing environment is not able to survive for long. E–banking Comprises of Internet Banking, Smart Cards, Debit Cards, Credit Cards,

Automated Teller Machines and Charge Cards etc. Now–a–days, Private Sector banks ought the State–of–The–art technology into the banking

system with increasing Competition, Public sector banks also adopted the new technology and foreign banks are also entering into the Indian

Banking Market. They are serving a hard and severe Competition to nationalize and Private Sector banks. The Central vigilance Commission

issued a directive on the need to computerize 70 Percent of the banking business by public Sector banks before 2018. Basic Computerization by

Public sector banks was started in 1993. The foreign banks and Private sector banks have successfully transited from Physical cash to any time

and any where money. ‘Click Banking’ has replaced ‘Queue Banking’.