Harisha N, Dr. Jayasheela


The banking industry in India has achieved a new height with the changing times. Committee headed by C. Rangarajan (1983) has given landmark reports strongly recommending the IT applications in the banking business in India. In 1994 Reserve Bank of India (RBI) constituted a committee for technical up gradation of the banks. It resulted to offers the wide range of customer services by replacing paper-based and labour intensive methods with automated processes thus leading to higher productivity and profitability. This paper made an attempt to study the evolution, application and progress and challenges of information technology in Indian banking system. This paper is based on available literature and secondary data. It is found that during last three years the application of IT in banking business progressed tremendously. Usage of automated teller machine (ATM) has increased from 1818398 to 208354 and total transaction of credit card and debit card also increased from 3326 to 7421 billion for the same period. The growth of NEFT transactions in India during the last three years doubled. Real Time Gross Settlement (RTGS), Electronic Clearing Service, Point of Sale Terminal, Internet banking, and tale banking application increased for last four years. The paper also found that application of information technology increased advantages as well as challenges to the modern banking business.


Information Technology, Automated Teller Machine (ATM), National Electronic Found Transfer (NEFT), Real Time Gross Settlement (RTGS), Electronic Clearing Service, Point of Sale Terminal.

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