Technological Developments in Indian Banking System

Dr. Sarang R. Javkhedkar; Dr. Anjali D. Shrungarkar

Volume : VIII, Issue : II, February - 2019

Technological Developments in Indian Banking System

Dr. Sarang R. Javkhedkar, Dr. Anjali D. Shrungarkar

Abstract :

A bank is generally understood as an institution which provides fundamental banking services such as accepting deposits and providing loans. The banking sector plays a vital role in the development of one country’s economy. The growth of banking sector depends upon the services provided by them to the customers in various aspects. The banking system in India should not only be hassle free but it should be able to meet the new challenges posed by the technology and any other external and internal factors. Banking services in India is found significant after the new economic reforms by using advancement in technology. A well–regulated banking system is a key comfort for local and foreign stake–holders in any country. Prudent banking regulation is recognized as one of the reasons why India was less affected by the global financial crisis. Banks can be oadly categorized as Commercial Banks or Co–operative Banks. Banks which meet specific criteria are included in the second schedule of the RBI Act, 1934. These are called scheduled banks. They may be commercial banks or cooperative banks. Scheduled banks are considered to be safer, and are entitled to special facilities like re–finance from RBI. Inclusion in the schedule also comes with its responsibilities of reporting to RBI and maintaining a percentage of its demand and time liabilities as Cash Reserve Ratio (CRR) with RBI.