Presented By:Vaibhav Jaiswal Ajit Swain (PGDM-IB)09-11 Isha Jain(PGDM-FS)

Presentation On::

banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. In other words, an institution where one can place and borrow money and take care of financial affairs.

According to T.G. Hart, A banker is one who in the ordinary course of his business receives money which he pays by honoring cheques of persons from whom or on whose account he receives it.

Lending money to public(loans) Transferring money from one place to another (Remittances) Acting as trustees Keeping valuables in safe custody Government business

IT usage by banks in India has come of age. The financial sector of the country has become more IT savvy and the Banking sector in particular is one of the largest users of IT and IT enabled services. The Reserve Bank too has enhanced the usage of IT as a tool for better performance and overall systemic efficiency. Some of the major developments are:Core Banking Systems (CBS) Internet Banking Mobile Banking Mobile Automated Teller Machines (ATMs) Multifunctional ATMs shared ATM services Large scale usage of Real Time Gross Settlement (RTGS)

 e-Banking

or electronic banking is the process by which the person may perform banking transactions without visiting a brick & mortar Institution. There are different type of e-Banking like PC (personal computer)banking , Internet banking, phone banking, home banking. But PC banking & Internet banking are more frequently used designations.

 Is

a form of online banking that enables customers to execute bank transactions from a PC via a modem. In PC banking the bank offers the customer a financial software program that allows the customer to perform financial transactions from his or her home computer. PC banking systems that allow customers to obtain account balances and credit card statements, pay bills, and transfer funds between accounts.

Internet banking, sometimes called online banking, is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. Internet banks are also known as virtual, cyber, net, interactive, or web banks.

A successful Internet banking solution offers : Exceptional rates on Savings, CDs, and IRAs Checking with no monthly fee, free bill payment and rebates on ATM surcharges Credit cards with low rates Easy online applications for all accounts, including personal loans and mortgages 24 hour account access Quality customer service with personal attention

The banking industry in India is facing unprecedented competition from non-traditional banking institutions, which now offer banking and financial services over the Internet.

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 IIM-L 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 & cash management services. Foreign & Private banks are much advanced in terms of the number of sites & their level of development.

Information technology analyst firm, the Meta Group, recently reported that "financial institutions who don't offer home banking by the year 2000 will become marginalized."

Bill payment service Fund transfer Credit card customers Railway pass Investing through Internet banking Recharging your prepaid phone Shopping at your fingertips Internet banking versus traditional method Security Precautions

Banks and financial institutions in India are in the process of Web-enabling their services in order to offer Internet banking services to its customers.

It's the new generation of banking in India. Most private and MNC banks have already setup an elaborate Internet banking infrastructure. And this exercise has provided them numerous benefits like: Greater reach to customers Quicker time to market Ability to introduce new products and services quickly and successfully Ability to understand its customers needs Customers are given access to information easily across any location Greater customer loyalty

 E-transaction

and authentication issues

in banking The e-Commerce Value Chain Trends in the Use of Electronic Transactions Cheque Truncation Lockbox Truncation Digital Signatures

In the developing countries like India, Banks should have a long foresighted vision on developments of banking operations. It has to observe what is happening in the developed countries and what is going to happen in India in near future with the following four trends 1.Financial Liberalisation 2.Disinternmediation 3.Globalisation 4.Technological innovation

The banking scenario in 2007 could be similar to the one presented above, which requires banks to be proactive and adopt a range of measures to shape their future:

Anticipate and prepare for regulatory change Focus on identifying core competence and migrate to a business model of choice. Build an optimal operating model by understanding which activities to retain collaborate and outsource. Go beyond compliance to use risk management as a critical decision support tool. Create and sustain customer, investor and regulator confidence by adopting international accounting standards and improving corporate governance. The no of internet users and the developing technology paved the super highway to internet banking. The comfort and the security play a vital role in switching from the traditional banking system to modern 24/7 net banking. Increasing usage of mobile phones is going to revolutionize the banking culture in near future. Carrying money in the form of plastic cards which is widely accepted every where to buy any thing is quite safe and give peace of mind to users is widely accepted.

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