INTRODUCTION:

In the 1960s and 1970s, the term information technology (IT) was a little known phrase that was used by those who worked in places like banks and hospitals to describe the processes they used to store information. Information technology (IT) is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data often in the context of a business or other enterprise .The term is commonly used as a synonym for computers and computer networks, but it also encompasses other information distribution technologies such as television and telephones. Several industries are associated with information technology, such as computer hardware, software, electronics, semiconductors, internet, telecom equipment, ecommerce and computer services in the early days of computer development, there was no such thing as a college degree in IT. Software development and computer programming were best left to the computer scientists and mathematical engineers, due to their complicated nature. As time passed and technology advanced, such as with the advent of the personal computer in the 1980s and its everyday use in the home and the workplace, the world moved into the information age.

By the early 21st century, nearly every child in the Western world, and many in other parts of the world, knew how to use a personal computer. Businesses' information technology departments have gone from using storage tapes created by a single computer operator to interconnected networks of employee workstations that store information in a server farm, often somewhere away from the main business site. Communication has advanced, from physical postal mail, to telephone fax transmissions, to nearly instantaneous digital communication through electronic mail (email).

DEFINITION:
According to ND Century Code Information Technology means the use of hardware, software, services, and supporting infrastructure to manage and deliver information using voice, data, and video.

INTRODUCTION:
The term banking technology refers to the use of sophisticated information and communication technologies together with computer science to enable banks to offer better services to its customers in a secure, reliable, and affordable manner, and sustain competitive advantage over other banks. In the five decades since independence, banking in India has evolved through four distinct phases. During Fourth phase, also called as Reform Phase, Recommendations of the Narasimham Committee (1991) paved the way for the reform phase in the banking. Important initiatives with regard to the reform of the banking system were taken in this phase. Important among these have been introduction of new accounting and prudential norms relating to income recognition, provisioning and capital adequacy, deregulation of interest rates & easing of norms for entry in the field of banking. Entry of new banks resulted in a paradigm shift in the ways of banking in India. The growing competition, growing expectations led to increased awareness amongst banks on the role and importance of technology in banking. The arrival of foreign and private banks with their
3

superior state-of-the-art technology-based services pushed Indian Banks also to follow suit by going in for the latest technologies so as to meet the threat of competition and retain their customer base. Indian banking industry, today is in the midst of an IT revolution. A combination of regulatory and competitive reasons has led to increasing importance of total banking automation in the Indian Banking Industry. Information Technology has basically been used under two different avenues in Banking. One is Communication and Connectivity and other is Business Process Reengineering. Information technology enables sophisticated product development, better market infrastructure, implementation of reliable techniques for control of risks and helps the financial intermediaries to reach geographically distant and diversified markets. In view of this, technology has changed the contours of three major functions performed by banks, i.e., access to liquidity, transformation of assets and monitoring of risks. Further, Information technology and the communication networking systems have a crucial bearing on the efficiency of money, capital and foreign exchange markets. The Software Packages for Banking Applications in India had their beginnings in the middle of 80s, when the Banks started computerizing the branches in a limited manner. The early 90s saw the plummeting hardware prices and advent of cheap and inexpensive but high-powered PCs and servers and banks went in for what was called Total Branch Automation (TBA) Packages. The middle and late 90s witnessed the tornado of financial reforms, deregulation, globalization etc coupled with rapid revolution in communication technologies and evolution of novel concept of 'convergence' of computer and communication technologies, like Internet, mobile / cell phones etc.

Different constituents of banking technology

FINANCE AND RISK MANAGEMENT

MARKETING SCIENCE

INFORMATION TECHNOLOGY

BANKING TECHNOLOGY

COMMUNICATION TECHNOLOGY

COMPUTER SCIENCE

BANK COMPUTERIZATION INTRODUCTION:

The wind of liberalization sweeping through India has affected all sectors of the economy and the center of all these activities is the Indian banking industry. In such a fast changing environment, to meet emerging need, the operations in banks need immediate automation to provide services comparable to best international standards and to match technological changes taking place in other countries.

Indian banking undertook very little efforts for modernizations in respect of work technologies particularly in the areas of introductions of computers and communication network until the early 1980s. Prior to 1983, most of the banks, being practically unable to computerize, had taken a passive view of this issue resulting in automation taking a very low priority. However, the new agreement reversed this trend and banks started the process of computerizing operations at various levels. Only after the first report of Rangarajan committee were there brisk activities in order to bring quick technological changes in the field of computers and communication.

BANK COMPUTERIZATION:
The concept of bank computerization practically started after 1980-81 and more precisely gained pace in the year 1983 -84 after setting up a committee in the year 1983 under the chairmanship of the then deputy governor of RBI Dr.C. Rangarajan. This committee was set up to study the possibilities and stages involved in bank computerization and to prepare guidelines for the same. The report submitted by the committee in the year 1984 was known as first Rangarajan committee report on bank mechanization. Another committee was constituted in 1988 under the chairmanship of Dr.C. Rangarajan to draw up a perspective plan on computerization of banks for a five year period 1990-94.

NEED FOR COMPUTERIZATION:

The four major objective of computerization in banking are to improve

Computers have a vital role to play wherever there is a huge volume of transactions and the work needs completion within a specified period. Consumers today are more demanding. There is a price on their time and therefore, when they visit a branch for a deposit or a cheque encashment, they are looking for a quick settlement of their transactions. Thus, the advantages flowing from computerization are many and most people working in the banking industry recognize it.

STAND-ALONE COMPUTER SYSTEM: The stand-alone computer system is normally the initial stage of computerization at a bank. The single user computer system is a small system, which as its name implies, is used by only one person at a time. Stand-alone systems are best suited for the decision-making process, which involves processing and analysis of data.

MULTI-USER SYSTEMS: The multi-user systems, as their names signify, are computers on which several people can work at the same time. Mini computers, Main Frame Computer, Micro-computers and the more powerful Super Computers all fall under this category.

DIFFERENT TECHNOLOGY

CONSTITUENTS

OF

BANKING

Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an enabling resource that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication with people and institutions associated with the banking business. The Software Packages for Banking Applications in India had their beginnings in the middle of 80s, when the Banks started computerizing the branches in a limited manner. The early 90s saw the plummeting hardware prices and advent of cheap and inexpensive but high powered PCs and Services and banks went in for what was called Total Branch Automation (TBA) packages. The middle and late 90s witnessed the tornado of financial reforms, deregulation globalization etc. coupled with rapid revolution in communication technologies and evolution of novel concept of convergence of communication technologies, like internet, mobile/cell phones etc. Technology has continuously played on important role in the working of banking institutions and the services provided by them. Safekeeping of public money, transfer of money, issuing drafts, exploring investment opportunities and lending drafts, exploring investment being provided. Information Technology enables sophisticated product development, better market infrastructure, implementation of reliable techniques for control of risks and helps the financial intermediaries to reach geographically distant and diversified markets. Internet has significantly influenced delivery channels of the banks.
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Internet has emerged as an important medium for delivery of banking products and services. The customers can view the accounts; get account statements, transfer funds and purchase drafts by just punching on few keys. The smart cards i.e., cards with micro processor chip have added new dimension to the scenario. An introduction of Cyber Cash the exchange of cash takes place entirely through Cyber-books. Collection of Electricity bills and telephone bills has become easy. The upgradeability and flexibility of internet technology after unprecedented opportunities for the banks to reach out to its customers. No doubt banking services have undergone drastic changes and so also the expectation of customers from the banks has increased greater. IT is increasingly moving from a back office function to a prime assistant in increasing the value of a bank over time. IT does so by maximizing banks of pro-active measures such as strengthening and standardizing banks infrastructure in respect of security, communication and networking, achieving inter branch connectivity, moving towards Real Time gross settlement (RTGS) environment the forecasting of liquidity by building real time databases, use of Magnetic Ink Character Recognition and Imaging technology for cheque clearing to name a few. Indian banks are going for the retail banking in a big way.

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BENEFITS OF TECHNOLOGY
Competition Studies show that competitive pressure is the chief driving force behind increasing use of Internet banking technology, ranking ahead of cost reduction and revenue enhancement, in second and third place respectively. Banks see Internet banking as a way to keep existing customers and attract new ones to the bank. Cost Efficiencies National banks can deliver banking services on the Internet at transaction costs far lower than traditional brick-and-mortar branches. The actual costs to execute a transaction will vary depending on the delivery channel used. For example, according to Booz, Allen & Hamilton, as of mid- 1999, the cost to deliver manual transactions at a branch was typically more than a dollar, ATM and call center transactions cost about 25 cents, and Internet transactions cost about a penny. These costs are expected to continue to decline. National banks have significant reasons to develop the technologies that will help them deliver banking products and services by the most cost-effective channels. Many bankers believe that shifting only a small portion of the estimated 19-billion payments mailed annually in the U.S. to electronic delivery channels could save banks and other businesses substantial sums of money. However, national banks should use care in making product decisions. Management should include in their decision making the development and ongoing costs associated with a new product or service, including the technology, marketing, maintenance, and customer support functions. This will help management exercise due diligence, make more informed decisions, and measure the success of their business venture.

11

Geographical Reach Internet banking allows expanded customer contact through increased geographical reach and lower cost delivery channels. In fact some banks are doing business exclusively via the Internet they do not have traditional banking offices and only reach their customers online. Other financial institutions are using the Internet as an alternative delivery channel to reach existing customers and attract new customers. Branding Relationship building is a strategic priority for many national banks. Internet banking technology and products can provide a means for national banks to develop and maintain an ongoing relationship with their customers by offering easy access to a broad array of products and services. Internet Banking 4 Comptrollers Handbook By capitalizing on brand identification and by providing a broad array of financial services, banks hope to build customer loyalty, cross-sell, and enhance repeat business. Customer Demographics Internet banking allows national banks to offer a wide array of options to their banking customers. Some customers will rely on traditional branches to conduct their banking business. For many, this is the most comfortable way for them to transact their banking business. Those customers place a premium on person-to-person contact. Other customers are early adopters of new technologies that arrive in the marketplace. These customers were the first to obtain PCs and the first to employ them in conducting their banking business. The demographics of banking customers will continue to change. The challenge to national banks is to understand their customer base and find the right mix of delivery channels to deliver products and services profitably to their various market segments.
12

INTRODUCTION:
Financial Institutions and Banks are continuously searching for new ways to use technology to deliver increasing number of products and services to their customers on one hand, on the other putting technology in use for problem solving and decision support. Expert system represent in the major areas that have found promising and strategic role in majority of the banks and financial institutions. Banks in the USA and Canada are developing or investing expert system for commercial applications although there are few known expert system currently in use but the future will see emergence of expert system in to the computing environment of the corporate world. Expert system is a computer program designed to model the knowledge and experience of human experts. This expertise is the key ingredient used for solving complicated problems or assessing or evaluating a plan or proposal. Thus expert systems are well suited to services organizations. They can emulate the intricate through process of experts and make the expertise available to less performing the type of tasks of highly aid experts. Experts system does not replace people but assists them to be more effective typically they are advice giving or decision support systems. The finance domain can clearly benefit from the application of experts system technology.

13

THE BENEFITS THUS DERIVED COULD BE LISTED AS FOLLOWS

Increase in speed of complex task accomplishment. System reduced a 3-hour system configuration task to 15 minutes. Increased quantity Reduced errors Decrease personnel required Canons Optex camera lens designed system has made scarce highly skilled lens designers, 12 times more productive. Reduced cost Reduced training time Improved decisions

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TECHNOLOGY SECTOR

DEVELOPMENTS

IN

BANKING

CORE BANKING SOLUTIONS

Core banking solution is designed on a customer centric, completely web based paradigm. currency solution The multi-lingual, core the multi banking CRM-enabled addresses

end-to-end

requirements of banks. Based on open systems, this extensively parameter sable solution comes with comprehensive outof-the-box features and packs several unique features like 24*7 operations, STP, workflow, multiple delivery channel support and the e-extensibility tool kit-all to deliver unparalleled value to banks. Core banking solution is fully multichannel alerts-enabled and facilities banks customers through their channel of choice. In a recent scalability audited by Ernst and young, core banking solution also emerged as one of the worlds most scalable core banking solution by achieving an unparallel performance of over 11,180 TPS (transaction per second) translating into 40 million transaction per hour.

FUNCTIONAL OVERVIEW
Core banking solution offers comprehensive retail, corporate and trade finance features-all in a highly secure and reliable environment.
15

 RETAIL BANKING:Core banking solution supports product management and account management for the full range of retail banking products such as savings, current/checking, overdraft, revolving overdraft, term deposits and all types of retail loans [personal loans, auto loans and mortgages].

CORPORATE BANKING:Core banking solution provides comprehensive product management and account management for corporate banking products such as commercial loans, syndications [participation], securitization, term loans, demand loans, overdrafts, non performing asset management, limit management, debt consolidation through replacements, collateral management, interest rate management and loan modeling.

TRADE FINANCE:Core banking solution offers powerful trade finance features covering business areas like bills (foreign and inland), documentary credits/letter credit, pre-shipment credits, bank guarantees, forward contracts and foreign remittances among others.

COMMON MODULES:Core banking solutions offers extensive common modules which include support for clearing (including electronic and RTGS), standing instructions, general ledger, signature display and management, document tracking, limits and collateral management, delinquency management and the whole range of day to day and year end reports. Core banking solution has the capability of interfacing with various payment gateways, anti money

16

laundering reporting management

solutions, systems, and

regulatory statements distribution

systems and consolidation packages.

SOCIETY FOR WORLDWIDE INTER-BANK FINANCIAL TELECOMMUNICATIONS (SWIFT):

SWIFT, as a co-operative society was formed in May 1973 with 239 participating banks from 15 countries with its headquarters at Brussels. It started functioning in May 1977. RBI and 27 other public sector banks as well as 8 foreign banks in India have obtained the membership of the SWIFT. SWIFT provides have rapid, secure, reliable and cost effective mode of transmitting the financial messages worldwide. At present more than 3000 banks are the members of the network. To cater to the growth in messages, SWIFT was upgrade in the 80s and this version is called SWIFTII. Banks in India are hooked to SWIFT-II system. SWIFT is a method of the sophisticated message transmission of international repute. This is highly cost effective, reliable and safe means of fund transfer. This network also facilitates the transfer of messages relating to fixed Deposit, interest Payment, debit-credit statements, foreign exchange etc. This service is available throughout the year, 24 hours a day. This system ensure against any loss of mutilation against transmission. It serves almost all financial institution and selected range of other users.
17

It is clear from the above benefit of SWIFT that it is very beneficial in Effective customer services. SWIFT has extended its range to users like agents. brokers, trust and other

E-CHEQUE SYSTEM

A Cheque is a signed paper document that orders the signers bank to pay an amount of money to a person specified in the cheque or a bearer from the signers account on or after a specified date. Cheque has the advantage that payers (drawer) and payees can be individuals, small businesses, brokerages, corporations, governments or almost any other type of organization. They pass directly from the payer to the payee, so that the timing and the purpose of the payment are clear to the payee. While cheques are usually very simple, business cheques can require multiple signatures and can be accompanied by list of invoices been paid. The payee can deposit a cheque in an account of his choice or cash it. Banks operate

18

extensive facilities to accept cheque for deposit, process them initially and clear and settle between banks. The electronic cheque, or e-cheque based on the idea that electronic documents can be substituted for paper and public key cryptographic signatures can be substituted for handwritten signatures. Therefore the echeques can replace paper cheques without the need to create a new payment instrument, along with the commercial practice changes that a new payment instrument would imply. Instead the e-cheque is designed to fit into current cheque practices and systems with minimum impact on payers, payees, banks and the financial systems. The payer writes an echeque by structuring an electronic document with the information legally required to be in a cheque and cryptographically signs it. The payee receives the e-cheque, verifies the payers signature, writes out a deposit, and signs the deposit. The payees bank verifies the payers and payees signature, credits the payees account forward the cheque for clearing and settlement. This credit will not be a clear credit; it will be a float or temporary credit, to be confirmed only after it has been cleared by the paying bank, in the settlement process. The payers bank verifies the payers signature and debits the payers account. The advantage of echeque is that cryptographic signatures on every e-cheque can be verified at all points, while in paper cheques handwritten signatures are rarely verified. The electronic cheque is designed to perform the payment and other financial functions of paper cheques, by using cryptographic signatures and secure messaging over the Internet. The electronic cheque system is designed with message integrity, authentication and non-repudiation properties sufficient to prevent fraud against their banks and their
19

customers. It is compatible with either interactive web transactions or with electronic mail. Since the electronic cheque does not depend on real-time interactions or on third party authorizations, electronic cheques are better able to survive outages of network links and computing nodes. The result is highly efficient electronic payments system, with a technology base that is extensible to a variety of financial instruments and other high integrity document processing applications needed by the financial industry.

ADVANTAGES OF ELECTRONIC CHEQUES: They are a fast, secure and convenient mode of electronic payment With e-Cheques you can Payment, transfer, deposit, certify, stop, inquiry, present, Represent. Operating expenditures like costs of printing cheque books etc. are reduced The Bank's liability in preserving passwords, PINs etc. is reduced.

DISADVANTAGES OF ELECTRONIC CHEQUES: The Problem Come When Your Merchant Does Not Accept E-cheque

The Other Problem Could Be When You Have More

Than One Signer Or Endorser.

20

PROCESS OF ELECTRONIC CHEQUE

ELECTRONIC CASH
INTRODUCTION:
Electronic cash is centralized German debit card system for handling money withdrawals from cash machines. Electronic cash is the debit card system of the German Central Credit Committee, the association which represents the top German financial interest groups. Usually paired with a checking account, cards with an Electronic Cash logo are only
21

handed out by proper credit institutions. An electronic card payment is generally made by the card owner entering their PIN (Personal Identification Number) at a so-called EFT-POS-terminal (Electronic-FundsTransfer-Terminal).

EXAMPLES OF ELECTRONIC CASH:

Electronic cash examples include:- prepaid cards, Payment cards, Special electronic checks from electronic bank accounts; Micro-payments, Anonymous cash, also coupons, Scrip, Smart cards as well as debit cards etc,

ADVANTAGES OF ELECTRONIC CASH:

SAVED TIME:
Reduce transaction process time Speed up transaction processes.

REDUCED COSTS:
Reduce transaction costs Reduce cash distribution costs.

FLEXIBILITY:
Digital cash can take many forms, including prepaid cards Digital cash can be converted into different currencies.

22

HOW IT USED:E-cash

is used over the Internet, email, or personal

computer to other workstations in the form of secured payments of "cash" that is virtually untraceable to the user. It is backed by real currency from real banks.

AUTOMATIC TELLER MACHINES (ATMs)

Automatic teller machines (ATM) are primarily used for performing some of the banking functions such as the withdrawal of cash or the deposit of cash/cheque, etc., by using an ATM card. The committee headed by Dr. C. Rangarajan recommended the setting up of ATM in India. They are to be strategically located at airports, railway stations, hospitals, important commercial centers, as well as bank branches. For use by the customers. Standalone ATMs made their appearance in India, in the early 1990s. For facilitating the operations through these ATMs, the customer was provided
23

with an ATM card with a unique personal identification number (PIN). Whenever a customer performs a transaction, the person has to key in the PIN which is validated by the ATM, before the machine permits any transaction. The PIN has to be kept secret by the customer, to prevent any misuse or fraudulent transactions in the event of loss of the card.

Advantages of ATMs
TO THE CUSTOMERS:
24x7 access availability Less time for transactions (less queue) Privacy in transactions Any branch/anywhere banking enabled Acceptability of card across multiple bank ATMs, even foreign tourists can Access maestro/VISA ATMs Other services enabled in ATMs in addition to cash dispensing includes Clearing cheques deposits, balance enquiry, cheque book requisition, details Of recent transaction.

24

TO THE BANK:
Cost setting up ATMs is lower than setting up a branch Migration of the routine transactions to the ATMs frees the bank staff for More productive work ATMs serve as the crucial touch point for cross-selling of the banks Products Enables the bank to display products on the screen and serves as a media For Publicity for the bank Less hassle in handling cash

ATM CARD
An ATM card (also known as a bank card, client card, key card, or cash card) is a payment card provided by a financial institution to its customers which enables the customer to use an automated teller machine (ATM) for transactions such as: deposits, cash withdrawals, obtaining account information, and other types of banking transactions, often through interbank networks. It can also be used on improvised ATMs, such as merchants' card terminals that deliver ATM features without any cash drawer (commonly referred to as mini ATMs). These terminals can also be
25

used as Cashless scrip ATMs by cashing the fund transfer receipt at the merchant's Cashier.

ADVANTAGES

You can withdraw cash at any time, day or night. The banks dont need to be open. ATMs offer the convenience of multiple locations. You can withdraw cash at any bank that is part of the system to which your ATM card is linked. Your ATM card is protected by a PIN, keeping your money safe. You dont need to fill out withdrawal and deposit slips as is required at the bank. ATMs are faster than going to the bankno long lines. You can withdraw cash at ATMs in foreign countries.

DISADVANTAGES

ATM may be off-line (system down). You may forget your PIN number. Risk of robbery when you leave the ATM. The ATM can break down or run out of cash. Fees charged to use ATMs of other banks can become expensive.

26

ELECTRONIC BANKING
The growth of internet and e-commerce is dramatically changing everyday life with the world-wide-web and e-commerce transforming the world into a digital global village. Customers and users have become netizen, and these are people who expect everything to happen at the click of the mouse. In this new digital marketplace banks and financial institutions are not lagging behind and have started providing service electronically over the Internet. These types of service provided by the banks on Internet, called e-banking, lower the transaction cost, add value to the banking relationship and empower customers. The study investigated the response of the bank customers regarding the working of e-banking as compared to manual banking system. Electronic Banking is an integrated Internet Banking that empowers the financial organization to extend the existing bouquet of services and process in to the Internet age. E-Banking presents a single face to the customer by consolidating multiple services on to a common platform, thus doing away with the need to maintain diverse online applications. E-Banking is the result of systematic analysis of the business and technology needs of financial institution and has evolved in to a truly global institutions in providing a secure online platform, capable of integrating with multiple back end process systems.

27

E-Banking utilizes a Single Platform Multiple-Components framework and comes packaged with a ready suite of web components for servicing banking needs across.

RETAIL BANKING CORPORATE BANKING PRIVATE BANKING MUTUAL FUNDS EQUITIES TRADING

HOW ELECTRONIC BANKING WORKS

Net banking makes it easy to transfer ones money from one branch in a particular city to any other branch in other city. One can open a FD account via the net. One needs to provide data regarding the amount and term of the deposit and also the branch in which the account is to be opened. One can order for an issue of demand draft or a bankers cheque. However, the draft can be delivered only to the customers address and not to any other third party.

28

One can inquire on the balance of ones savings, current and FD account and also on the tax deducted at source of ones FD account for the current and previous financial year. One can give instructions over the net for stopping payment on cheques. You can request for a cheque book via the internet, which will take three days to come. One can view all the transactions completed on an account for a specified period and get a copy via e-mail. E-Banking has component based modular architecture and is built on open standards. The solution leverages industry standard protocols and methodologies to seamlessly interface with multiple back office systems and enable banks to offer single point access to various products and services.

ELECTRONIC-BANKING FUNCTIONALLY
E-Banking the Internet Banking solution empowers financial institutions to address complex challenges through a ready suite of web applications in various banking areas.

CORPORATE: International and domestic fund transfers, account transfers Trade finance; Documentary credits/Letters of credit, bank Guarantee Cash management: single/bulk payments, collections, cash pooling
29

Forex requests

RETAIL:Electronic bill presentment and payments (EBPP): Bill reception, Bill payments (online and scheduled) Credit card payment Loan: Application and status monitoring Account services: Cheque book request, card re-issue request

TRADING: Online trading: Mutual funds, Equity, Bonds Portfolio Management

INFORMATION SERVICES: Customer statements Alerts News Reports

These powerful business services are designed to meet the requirements of any virtual bank. E-Banking provides a comprehensive set of functionality that enables financial institutions to deliver to their customers, products and services that traditionally were only available by visiting the branch in
30

person. E-Banking has been developed on point and click Internet standard, which relieves the bank from the process of client training and frees the bank resources to do what they do best.

SMART CARDS

It is a standard plastic card, except that it contains a micro processor and a storage unit. It can hold a lot of information about the card holder, including digital certificates. It can be used in all banking transactions. It can also be used as an Electronic Purse in to which monetary value has been loaded. Bank of America [5] has recently launched a new security and encryption process for corporate clients who use WANDA electronic service to transfer funds, initiate payments and manage global accounts. The smart card given to WANDA users offers encryption and authentication capabilities. Full range of cash management and foreign exchange services are available over the Net to corporate users through the use of smart cards. Smart Card sometimes called stored-value, have a specific amount of credit embedded electronically in the card. A credit card with a built in microprocessor and memory use for identification or financial transaction.
31

When inserted into a reader, it transfers data to and from a central computer. It is more secure than a magnetic stripe card and can be programmed to self-destruct if the wrong password is entered too many times. As a financial transaction card, it can be loaded with digital money and used like a travelers cheque, except that variable amounts of money can be spent until the balance is zero. These cards make the transaction fast, easy and convenient.

CREDIT CARD

Credit is a privilege and a convenience. Credit lets you charge a meal on a credit card, pay for an appliance on an installment plan, and take out a loan to buy a house, or pay for schooling. Credit allows you to make a purchase without ready cash. A credit card enables you to buy things now and pay for them later. You get credit by promising to pay in the future for something you receive in the present. Credit usually costs something, and what is borrowed must be paid back. Credit can be defined as a small plastic card that allows its holder to buy goods and services on credit to pay at fixed intervals through the cards issuing agency. Carrying a lot of
32

cash on you can be cumbersome, risky and sometimes, you run short of it, just when you most need it. Credit card is the smart solution to these problems. It is a convenient and safe alternative for cash. Besides, it says things about you. Most people associate a credit card with a prestige, which it most certainly bestows on you, but more importantly, it says that you have taken the onus of being responsible-to be extended credit! So During 1914, oil companies in the USA issued the first credit card to their customers to purchase gas, oil, accessories, etc at the gas stations. Thereafter, local department stores, airlines and railway companies also started issuing their own credit cards.

Advantages Cards

and

Disadvantages

of

Credit

CONVENIENCE--Credit cards can save you time and trouble--no searching for an ATM or keeping cash on-hand.

RECORD KEEPING--Credit card statements can help you track your expenses. Some cards even provide year-end summaries that really help out at tax time.

LOW-COST LOANS--You can use revolving credit to save today (e.g., at a one-day sale), when available cash is a week away. INSTANT CASH--Cash advances are quick and convenient, putting cash in your hand when you need it.
33

 PERKS--From frequent flier miles to discounts on automobiles, there is a program out there for everyone. Many credit card companies offer incentive programs based on the amount of purchases you make. BUILD POSITIVE CREDIT--Controlled use of a credit card can help you establish credit for the first time or rebuild credit if you've had problems in the past--as long as you stay within your means and pay your bills on time.

PURCHASE PROTECTION--Most credit card companies will handle disputes for you. If a merchant won't take back a defective product, check with your credit card company.

BALANCE

SURFING--Many credit card companies offer low

introductory interest rates. These offers allow you to move balances to lower-rate cards

OVERUSE--Revolving credit makes it easy to spend beyond Your means. PAPERWORK--You'll need to save your receipts and check them against your statement each month. This is a good way to ensure that you haven't been overcharged.

34

 HIGH-COST FEES--Your purchase will suddenly become much more expensive if you carry a balance or miss a payment.

UNEXPECTED FEES--Typically, you'll pay between 2 and 4 percent

just to get the cash advance; also cash advances usually carry high interest rates.

NO

FREE

LUNCH--The high interest rates and annual fees

associated with credit cards often outweigh the benefits received. Savings offered by credit cards can often be obtained elsewhere.

DEEPENING YOUR DEBT--Consumers are using credit more than ever before. If you charge freely, you may quickly find yourself in over your head--as your balance increases, so do your monthly minimum payments.

HOMEWORK--It's up to you to make sure you receive proper credit for incorrect or fraudulent charges.

TEASER RATES--Low introductory rates may be an attractive option, but they last only for a limited time. When the teaser rate expires, the interest rate charged on your balance can jump dramatically.

35

HOW

DOES

AN

INTERNET

CREDIT

CARD

TRANSACTION OCCUR?

36

DEBIT CARD

Debit cards are also known as check cards. Debit cards look like credit cards or ATM (automated teller machine) cards, but operate like cash or personal cheques. Debit cards are different from credit cards. While a credit card is a way to pay later, an debit card is a way to pay now. When you use a debit card, your money is quickly deducted from your checking or savings account. Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline stations, and restaurants. You can use your card any where merchants display your cards brand name or logo. They offer an alternative to carrying a cheque book or cash.

37

HOW DEBIT TRANSACTIONS WORK?

TWO TYPES OF CARD

ON-LINE DEBIT CARDS: These cards usually are enhanced ATM

(automated teller machine) cards which work the same as they would in an ATM transaction. It is an immediate electronic transfer of money from your bank account to the merchants bank account.
38

To access your account at a store terminal, you must punch in your personal identification number (PIN), as you would at an ATM. The system checks your account to see if it has enough money available to cover the transaction.

OFF-LINE DEBIT CARDS: these cards usually look like a credit card and
resemble a credit card transaction. The merchants terminal reads your card, identifies it as a debit rather than a credit card and creates a debit against your bank account. However, instead of debiting your account immediately, it stores the debit for processing laterusually within 2-3 days. Most, but not all, transactions are verified to see if there are adequate funds. Instead, of using a PIN number, the customer must sign a receipt, as he or she would be with a credit card.

The On-Line and Off-Line distinction may not matter to you unless: Your financial institution charges transactions or monthly fees. You prefer the security of a PIN required transaction. You prefer that both options not be on one card.

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DISTINGUISH BETWEEN A CREDIT CARD AND A DEBIT CARD

DEBIT CARD

CREDIT CARD

Apply at the local branch of your bank. A credit check must be carried out for Complete application form bringing ID eligibility; if you have a bad credit and proof of address. history your application could be rejected Linked to your bank account, which is Agreed credit limit up to which you usually your main source of funds and can spend and pay back later (usually where your salary is paid into monthly) As your debit card is linked to your bank You spend up to your agreed credit account you spend from the funds in your limit and you will be charged interest account so you must be sure of the if you do not pay back in full at the balance in your account as it is possible end of each month. to become overdrawn and incur charges. Usually free with your bank account, Usually no application fee, but there however fees may be charged at certain are annual or monthly charges. In ATMs. No interest charges on purchases. addition, as the money is borrowed you will incur interest charges. Credit Cards will charge high percentage fees for withdrawing cash from ATMs. Instant access to bank account for If making big purchases you are everyday expenses. protected. Buy now and pay later

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ELECTRONICWALLET
With the growth of banking business on internet, new electronic payment methods are evolving. As the new payment methods are evolving quite rapidly, it is becoming highly difficult for the end user to manage his payment instruments. Internet wallet helps the user in managing his payment instruments. A number of electronic commerce

applications allow end-users to purchase goods and services using electronic wallets. The importance of internet wallets is growing as buyers shift their purchases to the internet. Wallets benefit each participant of an online transaction. The core function is to enable consumers (business or individual) to pay online more conveniently and accurately than is otherwise possible. This is done by storing the users payment instruments (typically e-cheques, credit or debit card, addresses, etc.) securely within the wallet for easy use. In addition, they can also provide transaction management for users .In response to the needs of the electronic commerce community, the Electronic Wallet (EW) has been developed to support nearly unlimited variety of payment mechanisms, protocols, and electronic commerce operations for secure online banking transactions. Once a user decides to make an online purchase, EW guides the user through the transactions by helping him to choose a payment method and hide the complexity of how the payment is executed .EW developed using the java programming language, and runs on any computer platform, realizing the java credo write once, run anywhere.
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EW is extensible, providing a framework into which new payment methods can be integrated easily. It provides an easy-to-use graphical user interface to add new payment methods. EW works with popular web browsers and holds payment card accounts and digital certificates. It is robust and easy to use, reducing support costs and increasing customer satisfaction. It makes web shopping more convenient for consumers and much more efficient for merchants and financial institutions.

FEATURES:
Works with all popular web browsers (which support JAWA 2.0). Allows consumers to make purchases on the web quickly, conveniently, and with greater security. Features an easy-to-use graphical user interface. Supports multiple users with protected individual accounts. Supports multiple payment types and brands. Provides for easy installation of new payment protocols. Supports electronic commerce modeling language, a standard defined for maintaining user information such as his billing and shipping addresses.

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ELECTRONICCOMMERCE
Electronic commerce, commonly known as e-commerce or e-commerce, consists of the buying and selling of products or services over electronic systems such as internet and other computer networks. The amount of trade conducted electronically has grown dramatically since the wide introduction of the internet. A wide variety of commerce is conducted in this way, including things such as electronic funds transfer, supply chain management; e-marketing, online transaction processing, electronic data interchange (EDI), automated inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at technologies such as e-mail as well. A small percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on website, but most e-commerce eventually involves physical items and their transportation in at least some way. E-commerce is generally considered to be the sales aspect of e-business.

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INTERNET MERCHANT ACCOUNT

The internet Merchant account is not at all like a bank account it is more like a credit line. When your customers order online from your Web Site, the Credit Card information provided will be used to process the transaction. When the approval is obtained you are notified, through e mail confirmation and it will be posted to your Web-based administrative interface. Then, upon settlement, Merchant Bank is informed and funds will be transferred to business bank account, usually within a day. Without an internet Merchant

account, you would have to wait for the cardholder to make their monthly payments to their credit card company, and then receive your sales proceeds of course this would be a night mare since you have to wait for the cardholder to pay, whether all in one go, or a little each month Merchant Banks understand that this is just not sensible and merchant/business like your self cant wait indefinitely until they receive the proceeds from sales. Therefore banks (for a fee) take on the responsibility of collection and transfer of funds to your account. This is the function of an Internet Merchant Account.

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INDIAN BANKS ON WEB

The Banking industry in India is facing unprecedented competition from non trading Banking Institutions, which now offer Banking and Financial Services over the Internet. The deregulation of the Banking Industry coupled with the emergence of new Technologies, are enabling new competitors to enter the financial services market quickly and efficiently. Indian Banks are going for the Retail Banking in a big way. However, much is still to be achieved. This study which was conducted by students of IIML shows some interesting facts: Throughout the country, the internet banking is in the nascent stage of development (only 50 banks are offering varied kind of Internet Banking Services). In general, these Internet sites offer only the most basic services. 55% are so called entry level sites, offering little more than company information and basic Marketing materials. Only 8% offer advanced transactions such as online funds transfer, transactions and cash management services. Foreign and Private Banks are much advanced in terms of the number of sites and their level of development.

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CHEQUE TRUNCATION
Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for faster clearing of cheques. As the name suggests, truncation is the process of stopping the flow of the physical cheque in its way of clearing. In its place an electronic image of the cheque is transmitted with key important data. Cheque truncation thus obviates the need to move physical instruments across branches. This effectively eliminates the associated cost of movement of physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing. It is a system which is practiced worldwide in the banking sector; Cheque Truncation System (CTS) was introduced and implemented in the National Capital Region (NCR) in February 08 on a pilot basis. The number 2010 in 'CTS-2010' is because the guidelines for Cheque Truncation System came up in the year 2010.

Benefits to Account Holders

Since there is no physical movement of cheques, there is no fear of loss of cheque in transit. Usage of CTS cheques also means quicker clearance, shorter clearing cycle and speedier credit of the amount to your account. Depending on whether the cheque is local or outstation, the cheque can get cleared on the same day or within 24 hours.

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The biggest advantage is that CTS-compliant cheques are more secure than old cheques and, hence, less prone to frauds. Also, as the system matures, it is proposed to integrate multiple locations and reduce geographical restrictions in cheque clearing. Hence, there are chances of multi-city cheques getting cleared on the same day, going forward.

HWAK
(The Intelligent Auto-teller and Netware Management System)
Intelligent auto-teller systems are a special breed of auto-teller machines capable of thinking for themselves, that means they are fast, impose less demands on your banking systems and serve the customers more like a personal banker than less sophisticated auto teller systems. HWAK provides unsurpassed service even without benefit of a reliable communication network.

BENEFITS OF HWAK ARE: a) Customer satisfaction. b) High availability c) Online and offline auto-recovery d) Anytime full banking service e) Low cost, shorter queues and less number of tellers with ease of use f) Quick and early implementation g) Enhanced security and audit control h) Network management
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i) Predictable cost of ownership j) Comprehensive One Stop auto banking.

NOTE AND COIN COUNTING MACHINES

To reduce the need of manual counting, note counting machines are available which counts a bundle of notes placed on it. Loose notes are inserted into the machine. The machine counts the notes at high speed, digital while display. simultaneously Every time the indicating the number counted on a number reaches100, the machine stops, subject to it being fixed at 100 and allows for the bundle to be taken out. This machine does relieve the drudgery involved in counting. However, one limitation of this machine is that the notes have to be in fairly good condition for the machine to able to count properly. However, the machine requires that all notes be of the same denomination. Similarly, coin counting machines are available. These machines act like a sieve, separating the various denominations of coins into separate slots and also counting in the process. The counting of coin is basically based on the diameter of the coin.

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CLEARING HOUSE INTER-BANK PAYMENT SYSTEM (CHIPS) The CHIPS started operating in 1970, run by a New York clearing house, the worlds premier system for transfer of payments internationally. Settlement failures in the history of chips operation have never been reported and the operational time is claimed to be 99.9 per cent to 100 per cent. Most of the international fund transfers go through chips, as most of the international trade is transacted in US dollars. The financial transactions such as foreign and domestic trade services, international loans, syndicate loans, foreign exchange sales and purchases, Eurodollar placements, sale of short-term funds, etc., are done through chips. CLEARING HOUSE AUTOMATED PAYMENT SYSTEM (CHAPS) The CHAPS system set-up in the UK provides almost instantaneous service for settlement of payments and the payments are guaranteed on receipt and cannot be recalled. The network has been built around the most advanced computer and communication systems and offers a guaranteed payment system. Major clearing branches are equipped with CHAPS terminals, which allow payments to be sent to the system through several diverse locations.

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CLEARING HOUSE AUTOMATED TRANSFER SYSTEM (CHATS) CHATS provide the inter-bank funds transfer facilities in Hong Kong, Which has long been regarded as the hub of financial activities the world over. The success of this system depends largely on the superb and reliable communication networks. CHATS provide same day inter-bank settlement, instant online confirmation and enquiry facilities. All the inter-bank entries are first validated at the point of entry before transmission to the CHATS central system for settlement.

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IMPACT OF IT ON THE SERVICE QUALITY

The most visible impact of technology is reflected in the way the banks respond strategically for making its effective use for efficient service delivery. This impact on service quality can be summed up as below:

With automation, service no longer remains a marketing edge with the large banks only. Small and relatively new banks with limited network of branches become better placed to compete with the established banks, by integrating IT in their operations.

The technology has commoditizing some of the financial services. Therefore the banks cannot take a lifetime relationship with the customers as granted and they have to work continuously to foster this relationship and retain customer loyalty.

The technology on one hand serves as a powerful tool for customer servicing, on the other hand, it itself results in depersonalizing of the banking services. This has an adverse effect on relationship banking. A decade of computerization can probably never substitute a simple or a warm handshake.

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In order to reduce service delivery cost, banks need to automate routine customer inquiries through self-service channels. To do this they need to invest in call centers, kiosks, ATMs and Internet Banking today require IT infrastructure integrated with their business strategy to be customer centric.

IMPACT OF INFORMATION TECHNOLOGY ON BANKING SYSTEM

The banking system is slowly shifting from the Traditional Banking towards relationship banking. Traditionally the relationship between the bank and its customers has been on a one-to-one level via the branch network. This was put into operation with clearing and decision making responsibilities concentrated at the individual branch level. The head office had responsibility for the overall clearing network, the size of the branch network and the training of staff in the branch network. The bank monitored the organisations performance and set the decision making parameters, but the information available to both branch staff and their customers was limited to one geographical location. TRADITIONAL BANKING SECTOR

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The modern bank cannot rely on its branch network alone. Customers are now demanding new, more convenient, delivery systems, and services such as Internet banking have a dual role to the customer. They provide traditional banking services, but additionally offer much greater access to information on their account status and on the banks many other services. To do this banks have to create account information layers, which can be accessed both by the bank staff as well as by the customers themselves. The use of interactive electronic links via the Internet could go a long way in providing the customers with greater level of information about both their own financial situation and about the services offered by the bank. The New Relationship Oriented Bank

IMPACT OF IT ON PRIVACY AND CONFIDENTIALITY OF DATA

Data being stored in the computers is now being displayed when required on through internet banking mobile banking, ATMs etc. all this has given rise to the issues of privacy and confidentially of data are:

The data processing capabilities of the computer, particularly the rapid throughput, integration, and retrieval capabilities, give rise to doubts in the minds of individuals as to whether the privacy of the individuals is being eroded.
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So long as the individual data items are available only to those directly concerned, everything seems to be in proper place, but the incidence of data being cross referenced to create detailed individual dossiers gives rise to privacy problems.

Customers feel threatened about the inadequacy of privacy being maintained by the banks with regard to their transactions and link at computerized systems with suspicion. Aside from any constitutional aspect, many nations deem privacy to be a subject of human right and consider it to be the responsibility of those who concerned with computer data processing for ensuring that the computer use does not revolve to the stage where different data about people can be collected, integrated and retrieved quickly. Another important responsibility is to ensure the data is used only for the purpose intended.

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Although traditional banking has gone through many hardships still this period has lasted for quite a long time. The manual way of operations caused a lot of inconvenience. However, it was eventually rectified with the introduction of information technology (P.C.) in banks. Some problems faced by the banks in the primitive age were:

1.

MAINTENANCE OF RECORDS AND DOCUMENTS

As there was no method of storage, all the records had to be maintained in the form of files. Banks were penalized with huge amounts for not maintaining the records as prescribed by the RBI.

2.

TIME FACTOR

As there was no technology and all the transaction entries had to be manually posted into the books. People had to stand in long quos to get their work done (e.g.) update their passbooks or withdraw money.

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3.

ACCURACY

As there was a human element involved, and human tends to make mistakes. 100% accuracy could not be maintained. The procedure to calculate the interest was very tedious so there were many mistakes while calculating it.

4.

IRREGULARITY OF AN EMPLOYEE

The set of work to be conducted was allotted to each employee, and if that employee was on a leave or failed to appear the work to done by him was left pending and the customers were not entertained.

5.

BURDEN OF WORK

As all the books of accounts had to maintain manually, and each entry had to be posted and checked at the end of each day the work load increased of the employees. This lead to a displeasure among the employees on seeing the customer, they did not entertain the customers, nor provided them any service to reduce their job. However, all these problems gave rise to need for IT in banking sector. Slowly, the traditional banking also realized the power of technology and initiated the absorption of technology to retain their profitable customers, and to enhance their efficiency, productivity and competitiveness.

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DRAWBACK OF INFORMATION TECHNOLOGY AND ITS SOLUTION

While ICT provides so many advantages to the banking industry, it also poses security challenges to banks and their customers. Even though Internet banking provides ease and convenience, it is most vulnerable to hackers and cyber criminals. Online fraud is still big business around the world. Even though surveillance cameras, guards, alarms, security screens, dye packs, and law enforcement efforts have reduced the chances of criminal stealing cash from a bank branch, criminals can still penetrate the formidable edifice like the banking industry through other means. Using Internet banking and high tech credit card fraud, it is now possible to steal large amounts of money anonymously from financial institutions from the comfort of your own home, and it is happening all over the world. Further, identity theft, also known as phishing, is one of the fastest growing epidemics in electronic fraud in the world. Identity theft occurs when fraudsters gain access to personal details of unsuspecting victims through various electronic and non-electronic means. This information is then used to open accounts (usually credit card), or initialize loans and mobile phone accounts or anything else involving a line of credit. Account theft, which is commonly mistaken for identity theft, occurs when existing credit or debit cards or financial records are used to steal from existing accounts. Although account theft is a more common occurrence than identity theft, financial losses caused by identity theft are on average greater and usually require a longer period of time to resolve. Spam scams involve fraudsters sending spam e-mails informing customers of some seemingly legitimate reason to login to their accounts. A link is
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provided in the e-mail to take the user to a login screen at their bank site; however the link that is provided actually takes the user to a ghost site, where the fraudster can record the login details. This information is then used to pay bills and or transfer balances for the fraudsters financial reward. Card skimming refers to the use of portable swiping devices to obtain credit card and EFT card data. This data is rewritten to a dummy card, which is then usually taken on elaborate shopping sprees. As the fraudster can sign the back of the card himself or herself, the merchant will usually be unaware that they have fallen victim to the fraud. One can curb these hitech frauds by using equally hi-tech security mechanisms such as biometrics and smart cards. The key focus in minimizing credit card and electronic fraud is to enable the actual user of the account to be correctly identified. The notion of allowing a card to prove your identity is fast becoming antiquated and unreliable. With this in mind, using biometrics to develop a more accurate identification process could greatly reduce fraud and increase convenience by allowing consumers to move closer to a no wallet society. The main forms of biometrics available are fingerprint identification, palm print identification, facial recognition, iris recognition, voice recognition, and computer-recognized handwriting analysis.

Many industry analysts such as the American Bankers Association are proposing that the smart payment cards are finally poised to change the future of electronic payments. The smart card combines a secure portable payment platform with a selection of payment, financial, and nonfinancial applications. The reach of the smart card potentially goes beyond the debit and credit card model. Instead of a smart card, ISO uses the term
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integrated circuit card (ICC), which includes all devices where an integrated circuit is contained within the card. The benefits provided by smart cards to consumers include: convenience (easy access to services with multiple loading points), flexibility (high/low value payments with faster transaction times), and increased security. The benefits offered to merchants include: immediate guaranteed cash flow, lower processing costs, and operational convenience.

CHALLENGES BEFORE TRADITIONAL BANKS IN ABSORPTION OF TECHNOLOGY

The heavy initial investment involved in infusing technology is a major limitation for many banks. Also, one of the main constrains faced by traditional banks is the inadequate infrastructure in rural areas where they have branches in large numbers. One model followed by some of the banks is the 80-20 rule concentrate on 20% branches in cities and towns which will cover 80% of the business. In early days of banking the employees found it very difficult to cope up with the emerging technology. As the applications used during that time were very lengthy and complicated. Employees found the traditional tidies methods to be comfortable rather than computers. But later the technology improved and is still making remarkable progress in banking sectors. I.T. has now in recent times arrived with total banking solution softwares. And to make the employees feel at ease with the application a special training is provided also the concept of help desks have been availed. Help desks Banks are running Help Desk on 24/7 basis as single point of contact to assist resolution of problems faced by users of core banking branches. These are contacted
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when branch user encounters problem with respect to software or hardware which could not be resolved by the local IT officials.

COST PRESSURE
For achieving maximum effectiveness, the technology solutions should be in alignment with the business requirements of the banks. As each organization has its own unique operational style, it has to be properly analyzed and then opt for investing in technology. This is one of the toughest challenges for any traditional banks in India. Cost pressure comes into play when banks are not able to afford the cost of a certain service or initiative although they want to. This is primarily because the cost structure at the backend is not efficient enough to offer that kind of service to the marketplace.

IS TRADITIONAL BRANCH BANKING DEAD?

The extent to which new regulatory policies and technology has transformed the banking industry brings to one moot question: Is traditional branch banking dead? But despite the benefits offered by other technologies in terms of lower costs it looks like branch banking is very much here to stay. Branch banking itself is undergoing a transformation. Initially banks used their retail outlets to provide services to the individual customer. Now they are using the branches to inform and educate customers about other, more efficient channels to conduct common transactions like cash withdrawal or balance checks.
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DATE OF VISIT TIME OF VISIT PLACE OF VISIT

: : :

13 AUGUST, 2013 5.30pm TJSB SAHAKARI BANK LTD TILAK NAGAR CHEMBUR, MUMBAI 89

OBJECTIVE OF VISIT

: 1. TO KNOW ABOUT THE TYPES OF SERVICES PROVIDED

BANK WITH THE HELP OF TECHNOLOGY. 2. TO KNOW OVERALL IMPACT OF TECHNOLOGY ON BANKING SECTOR.

OBSERVATION

The TJSB branch manager had explained me about the banking services which they provide their customer such as RTGS, NEFT, cheque depository machine, cheque dispensing machines, internet banking, mobile banking, SMS banking, Email banking , E-statement , rupee ATM card, anywhere banking, ATM connectivity to BANCS network of 5000 branches. Implemented Core Banking Solution (CBS). The TJSB bank has its own data center and the same is offered to other banks on sharing basis. The bank has created call center for attending queries of the customers, issuance of ATM card and follow for payments.

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They have started these services in 1998. They use these technologies in loan syndication, and deposit account (saving a/c, current a/c). they are having competitors such as SARASWAT BANK , ABHYUDAYA BANK, SHAMRAO VITHAL BANK, and in private sector ICICI BANK , and HDFC BANK . they have disaster recovery site at Pune and Mumbai at present they have 85 branches with the GUJARAT, KARNATAKA, MAHARASHTRA.

AWARDS
BEST URBAN CO-OPERATIVE BANK FOR CONSECUTIVE 3 YEARS AWARDED BY MAHARASHTRA RAJYA SAHAKARI BANKS ASSOCIATION LTD

TECHNOLOGY BANK OF THE YEAR FOR 2009 AWARDED BY IBA

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DATE OF VISIT TIME OF VISIT PLACE OF VISIT

: : :

16 AUGUST, 2013 1.00pm AXIS BANK SANDU GARDEN, CHEMBUR MUMABI 71

OBJECTIVE OF VISIT

: 1. TO KNOW ABOUT THE TYPES OF SERVICES PROVIDED

BANK WITH THE HELP OF TECHNOLOGY. 2. TO KNOW OVERALL IMPACT OF TECHNOLOGY ON BANKING SECTOR.

OBSERVATION

The AXIS branch manager had explained me about the banking services which they provide their customer such as cash deposit machine, token machine, cheque machine, ATM, drop box. The bank had started deposit machine before 1 year and token machine before 8 month. These banks have some competitors such as HDFC BANK and ICICI BANK. The impact of this bank to develop core banking services.

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Conclusion

The IT (Information Technology) has changed the Indian structure of Indian Banking. Technology has been identified by banks as an important element in their strategy to improve productivity and render sufficient customer service. In banking computerization has taken place all over the world. The purpose is to bring technology to the counter and to enable Employees to have information at their fingertips. Banks have changed in their operations and moved towards universal banking along with the increased usage of technology and technologybased services offering alternate channels such as smart cards, ATMs, usage of the internet, mobile and social banking. Banks have started deploying core banking, human resource management (HRM) and enterprise risk (ERP) management and process re-engineering etc to improve on their performance and productivity. Majority of banks are insisting on cashless and paperless payment modes.

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ANNEXURE

1) What types of services do your bank provide with the help of technology? 2) When did your bank start these services? 3) In which areas your bank use the technology? 4) Has use of technology benefited your bank? How? 5) What security measures do undertake to ensure safe services to customers? 6) Who are your competitors in this respect? 7) What is the overall impact of technology on banking sector?

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BIBLIOGRAPHY
BOOKS
Vipuls banking and insurance series
INTRODUCTION TO COMPUTER SYSTEMS RAJAN GURNANI

Indian institute of banking and finance

PRINCIPLES PRACTICES OF BANKING

INTERVIEW
DEEPAK RAUT ASST. BRANCH MANAGER TJSB BANK AXIS BANK BRANCH MANAGER

INTERNET
http://www.scribd.com/doc/20879986/technology-banking http://www.useoftechnology.com/advantages-disadvantages-informationtechnology/ http://www.scribd.com/doc/64552830/Information-Technology-inBanking-Sector

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