BANKING SYSTEM IN INDIA Presented by LOHITH. D & NAGARJUN MBA 1 st Semester ILAM Bangalore Campus
Contents Introduction Old banking system New banking system Conclusion References
INTRODUCTION “A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital market. A bank connects customers with capital deficits to customers with capital surpluses. ”
OLD BANKING SYSTEM Ø PHASE 1 Early phase from 1786 to 1969 of Indian banks. Ø PHASE 2 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. Ø PHASE 3 New phase of Indian Banking system with the advent of Indian Financial & Banking Sector Reforms after 1991.
FUNCTIONING OF OLD BANKS Ø ACCEPTING DEPOSITS Ø ISSUAL OF DEMAND DRAFTS Ø GRANTING LOANS & ADVANCES Ø UNDERTAKING SAFE CUSTODY OF VALUABLES, IMPORTANT DOCUMENTS & SECURITIES BY PROVIDING SAFE DEPOSIT VAULTS OR LOCKERS
Ø DOCUMENTATION IS MAINTAINED THROUGH LEDGERS ONLY. Ø MINIMUM BALANCE FOR OPENING AN ACCOUNT WAS MORE DURING THIS PERIOD. Ø CREDITS WERE GRANTED AT VERY HIGH RATE OF INTEREST. Ø TOKEN SYSTEM FOR WITHDRAWAL OF CASH FROM THE ACCOUNT.
DISADVANTAGES Ø POSSIBILITY OF HUMAN ERRORS. Ø TIME CONSTRAINT. Ø CUSTOMER RELATIONSHIP WAS LIMITED. Ø OVER DRAFT WAS NOT AVAILABLE. Ø PROCESSING FEES WAS CHARGED FOR ALL THE TRANSACTIONS. Ø PASSING OF CHEQUES WAS DELAYED. Ø LIMITED USE OF TECHNOLOGY.
New Banking System WHY TECHNOLOGY IN BANKS ? Ø TO TRANSFORM FINANCIAL SERVICES INDUSTRY IN THE NET- WORKED WORLD: -INCREASED OPERATION EFFICIENCY, PROFITABILITY & PRODUCTIVITY - SUPERIOR CUSTOMER SERVICE - PROVIDE SERVICES / PRODUCTS ACROSS A RANGE OF CHANNELS - TO BE FUTURISTIC AND HAVE “TIME” VALUE IN ALL ITS DEALINGS WITH CUSTOMERS -IMPROVED MANAGEMENT/ACCOUNTABILITY -BETTER CROSS SELLING ABILITY -MINIMAL TRANSACTION COST -IMPROVED FINANCIAL ANALYSIS CAPABILITIES.
Business process Re. Engineering Human Resource empowerment Planning for Disasters Pre-requisites for Technology
Focus aspects of New Banking Systems ØCORE BANKING SOLUTIONS(CBS) “Pooling data at central server” ØCUSTOMER RELATIONSHIP MANAGEMENT(CRM)
Focus aspects of New Banking Systems ØELECTRONIC FUND TRANSFER(EFT) ØELECTRONIC CLEARING SYSTEM(ECS) ØANY BRANCH BANKING ØRISK MANAGEMENT ØATM’S ØCARD MANAGEMENT ØMOBILE BANKING
BEWARE OF : ØHACKING ØPHISHING ØPHARMING ØSKIMING ØTROJAN
CONCLUSION “The reforms to the old Banking system with the advent of technology has bought in a dramatic change in its functioning and has increased customer relationship. ”
![REFERENCES ØTechnology in Indian Banking[Commercial Banking]. ØTraditional Banking System in India. ØTrend & progress](https://present5.com/presentation/19166395_246240534/image-15.jpg "REFERENCES ØTechnology in Indian Banking[Commercial Banking]. ØTraditional Banking System in India. ØTrend & progress")
REFERENCES ØTechnology in Indian Banking[Commercial Banking]. ØTraditional Banking System in India. ØTrend & progress of Banking in India, RBI 2006 ØGoogle search. Øwww. antiphishing. com
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