...Volume : 3 | Issue : 1 | Jan 2014 ISSN - 2250-1991 Research Paper Commerce Mobile Banking in Rural India: Roadmap to Financial Inclusion * Ms.Rati Dhillon * Assistant Professor, Department of Commerce, Bharati College, University of Delhi t ABSTRACT The concept of digital inclusion in the banking industry has become a parlance in the worldwide. The term digital inclusion provides the people the skills of basic technology to participate in the knowledge economy that lead to an enhanced performance of macro-economic. The study deals with the mobile banking in India. This study in detail discusses about the mobile banking, the emergence of mobile banking and present scenario in India, mobile banking in rural areas of India, how mobile banking helps in achieving financial inclusion. Further it will also discuss how mobile banking helps in overcoming the financial challenges with the analysis of scope of mobile banking in the near future. Keywords : Digital Inclusion, Banking, Mobile Banking, Rural, Financial Inclusion Introduction to Mobile Banking According to Tiwari and Buse (2007) mobile banking is also referred as m-banking, SMS banking and so on. Mobile banking is the term used for performing account transactions, balance checks, credit applications, payments and more through a mobile device like tablet computer like iPad or mobile phone. Mobile banking is a provision offered by financial and banking institutions that help users avail their services with the...
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...Introduction of Indian banking industry History of Indian Banking The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. Key points in history of Indian banking industry * Establishment of Reserve bank of India in April 1935 and its nationalization in January 1, 1949. * Nationalisation of 14th largest commercial bank in India on July !9, 1969. At present there are 26 nationalised bank in India wth this the government controls around 91% of banking service in India * Liberalisation In the early 1990s, the then Narasimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks. includes Oriental bank of commerce, Axis bank, ICICI bank and HDFC bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks,...
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...E-BANKING E-BANKING Group 14 Section3 Group 14 Section3 Table of Contents ABSTRACT 4 INTRODUCTION 4 BRIEF HISTORY OF E-BANKING IN INDIA 5 HOW DOES IT WORK? 5 LITERATURE REVIEW 6 Need for E-banking: 7 Advantages and Benefits of E-Banking: 7 Drawbacks: 8 E-banking in Rural India 9 Online Trading 10 Traditional Trading Vs Online Trading 10 Online Bill Payment 11 Frauds 12 Phishing 12 Trojan Horse 13 Preventive measures 13 OTP 13 Hardware Tokens 13 Smart Card and USB Tokens 13 RECOMMENDATION 14 Access Control 14 Firewalls 14 Isolation of Dial up Services 14 Security Log (audit Trail) 14 Back up & Recovery 14 Approval for I-banking 14 FUTURE SCENARIO 15 Cyber Crime 15 Real Time Gross Settlement System (RGTS) 15 Wireless Application Protocol (WAP) 16 Mobile Banking: 17 Direct Benefit Transfer 21 ABSTRACT With rapid advances in technology, changing according to modern times has become a prerequisite to survive in this highly competitive world. As people are becoming increasingly aware of the consequences of their financial decisions, their needs and expectations have rose to high levels. Banking institutions are facing competition not only from each other but also from non-bank financial intermediaries as well as from alternative sources of financing. Almost everything is available to the customer at his/her doorstep and is just a click away. All this cannot be done with the facility of online...
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...E-Commerce industry Study Objective * To learn about the existing trends in e-commerce industry today * To analyse in depth the benefits and limitations of online transactions of products * To examine the online shopping sites prevalent in Coimbatore such as the mall.coimbatore which is an online shopping store and personal buying assistant in Coimbatore * To observe the future of the industry and recommend improvement ideas Need for selecting the ecommerce Industry India, one of the fastest growing economies presents a world of opportunities to entrepreneurs, investors, and researchers with an interest in the global economy. India’s e-Commerce industry is on the growth curve and experiencing a spurt in growth. With this increased interest comes a surge in demand for facts, trends and indicators. Highly concentrated urban areas with very high literacy rates, a vast rural population with fast increasing literacy rate, a rapidly growing internet user base, technology advancement and adoption and such other factors make India a dream destination for ecommerce players. E-commerce combines web technology with business economics. As of the last 10 years, online visibility for such online enterprises now heavily rely on the relationship between the own online sales platform and Search Engines for improved traffic consisting of presumable customers with the intent of acquiring products or services related to the customers’ needs. In 2008 an Internet behavioural analysis...
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...Reserve Bank of India RESERVE BANK OF INDIA www.rbi.org.in ž¸¸£·¸ú¡¸ ¹£ö¸¨¸Ä ¤Îˆ RBI Central Office Building, Mumbai RESERVE BANK OF INDIA www.rbi.org.in ž¸¸£·¸ú¡¸ ¹£ö¸¨¸Ä ¤Îˆ 2 Contents Overview: Who We Are � Celebrating Our Platinum Jubilee � The Reserve Bank: Tradition and Change � Celebrating 75 years: Highlights Organisation and Structure: How We Operate � Management and Structure Main Activities: What We Do � Monetary Authority � Issuer of Currency � Banker and Debt Manager to Government � Banker to Banks � Regulator of the Banking System � Manager of Foreign Exchange � Regulator and Supervisor of the Payment and Settlement Systems � Developmental Role Research, Data and Knowledge Sharing: How We Communicate � Communicating with the Public � RBI Publications Addressing Current and Future Challenges Customer Service: How Can We Help You? 3 4 5 6 8 9 11 12 15 18 20 22 24 26 28 31 32 33 34 36 Overview: Who We Are The Reserve Bank of India (RBI) is the nation’s central bank Since 1935, when we began operations, we have stood at the centre of India’s financial system, with a fundamental commitment to maintaining the nation’s monetary and financial stability. 3 From ensuring stability of interest and exchange rates to providing liquidity and an adequate supply of currency and credit for the real sector; from ensuring bank penetration and safety of depositors’ funds to promoting and developing financial institutions and markets, the...
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...E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. | Ms Smita Singh, Research Scholar, Department of Business Administration, University of Lucknow, Lucknow(M) 098395-01035e-mail: smita_saggi@rediffmail.com | Ms. Smita Singh Ms. Singh is a visiting faculty at Institute of Management Sciences, University of Lucknow and Distance Learning Centre for Punjab Technical University. She has been associated with academics for the past 2½ years and is enrolled for PhD research at the Department of Business Administration, University of Lucknow. She has worked with Wigan and Leigh College, Lucknow as Programme Manager and Academic Head, Management. A NTSE (NCERT) and HRD Ministry scholarship holder, she has qualified SLET in Anthropology. With over 8 years of industry experience, her current affiliation as Human Resource Consultant is with the Lucknow based project centre of Johns Hopkins University of Public Health and Hygiene, which she earlier served for 4 years as Manager HR and Research Associate. DECLARATION I hereby declare that the paper/case is original and is authored by me. The paper/case has not been published elsewhere ABSTRACT E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. 70 % of India's population lives in rural areas in its 627000 villages. Technopak’s...
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...WORLD RESOURCES INSTITUTE What Works Case Study WHAT WORKS: AKASHGANGA'S IT TOOLS FOR THE INDIAN DAIRY INDUSTRY Using IT to increase efficiency in rural dairy cooperatives AJAY SHARMA AKHILESH YADAV August 2003 SUPPORT FOR THIS DIGITAL DIVIDEND “WHAT WORKS” CASE STUDY PROVIDED BY: THE MICROENTERPRISE DEVELOPMENT DIVISION OF THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID), THROUGH THE SEEP NETWORK'S PRACTITIONER LEARNING PROGRAM THE DIGITAL DIVIDEND “WHAT WORKS” CASE STUDY SERIES IS MADE POSSIBLE THROUGH SUPPORT FROM: THE INFORMATION FOR DEVELOPMENT PROGRAM (INFODEV) MICROSOFT IN PARTNERSHIP WITH: COLUMBIA BUSINESS SCHOOL UNIVERSITY OF MICHIGAN BUSINESS SCHOOL UNIVERSITY OF NORTH CAROLINA KENAN-FLAGLER BUSINESS SCHOOL EXECUTIVE SUMMARY India has quadrupled its milk output in forty years, becoming the world’s largest milk-producing nation, with a gross output of 84.6 million tons in 2001. It has achieved this on the strength of a producer-owned and professionally-managed cooperative system, despite the fact that a majority of dairy farmers are illiterate or semi-literate and run small, marginal operations; for many dairy farmers, selling milk is their sole source of income. More than ten million dairy farmers belong to 96,000 local dairy cooperatives, which sell their product to one of 170 milk producers’ cooperative unions which, in turn, are supported by fifteen state cooperative milk marketing federations. Despite this achievement, India’s...
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...is affected by every other sector. A Simple Financial Innovation like a debit card can lift millions of people out of poverty and connect them to the global economy. It helps entrepreneurs raise money for the next idea. In the coming few pages I shall attempt to discuss few financial innovation and how they have affected the global economy. Microfinance Microfinance is a source of financial services for entrepreneurs and small businesses lacking access to banking and related services. Microfinance is a broad category of services, which includes microcredit. Microcredit is provision of credit services to poor clients. Microcredit has enjoyed spectacular success in poor nations like Grameen Bank in Bangladesh and SKS Microfinance in India. What is Microcredit? Much of the current interest in microcredit stems from the Microcredit Summit (2-4 February 1997), and the activities that went into organizing the event. The definition of microcredit that was adopted there was: Microcredit programmers extend small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families. Definitions differ, of course, from country to country. Some of the defining criteria used include- size – loans are micro, or very small in size target users – microenterpreneurs and low-income households utilization – the use of funds – for income generation, and enterprise development, but also for community use (health/education) etc...
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...Reserve Bank of India: Functions and Working RESERVE BANK OF INDIA www.rbi.org.in ž¸¸£·¸ú¡¸ ¹£ö¸¨¸Ä ¤¸ÿˆ 2 Foreword The Reserve Bank of India, the nation’s central bank, began operations on April 01, 1935. It was established with the objective of ensuring monetary stability and operating the currency and credit system of the country to its advantage. Its functions comprise monetary management, foreign exchange and reserves management, government debt management, financial regulation and supervision, apart from currency management and acting as banker to the banks and to the Government. In addition, from the beginning, the Reserve Bank has played an active developmental role, particularly for the agriculture and rural sectors. Over the years, these functions have evolved in tandem with national and global developments This book aims to demystify the central bank by providing a simple account of the Reserve Bank’s operations and the multidisciplinary nature of its functions. The Bank today focuses, among other things, on maintaining price and financial stability; ensuring credit flow to productive sectors of the economy; managing supply of good currency notes within the country; and supervising and taking a lead in development of financial markets and institutions. The book serves to highlight how the Reserve Bank’s decisions touch the daily lives of all Indians and help chart the country’s economic and financial course. We hope that readers would find the book...
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...E-Governance MIS- PROJECT 1/26/2013 Batch B Group 4 Vinay Chandran Jijith Balakrishnan Karanveer Kang Jagannath Mohan Anoop Q 1. E-Government history? The origin of e-Government dates back to 1993, in the United States, the government of which promoted the ‘National Information Infrastructure Initiative’, in order to promote a fabric of communication networks, computers, databases and consumer electronics that placed an enormous quantity of information at the disposal of users, as well has helping cause an information revolution that changed the way of life, work and interaction of people and constructed a ICT resource platform in which industry, government and universities integrated their information systems. At the end of the same year, Europe also confronted the new challenge and commissioned a report on the global Information Society in Europe to be presented in June 1994; the Bangemann Report ‘Europe and the global information society. Recommendations to the European Council. Ten applications were proposed in the report for the launch of the information society. The ninth of them was the creation of a trans-European public administration network, with the initial aim of providing more efficient and cheaper information exchange (replacing paper with electronic media) to then be employed to unite public administrations and European citizens. In the year 2000, the European Union launched the Action Plan eEurope 2002-An Information Society for All, which laid down...
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...E-GOVERNANCE INITIATIVES – INDIA “The Government would implement a comprehensive programme to accelerate egovernance at all levels of the Government to improve efficiency, transparency and accountability at the Government-Citizen Interface.” – Hon’ble Prime Minister’s Declaration on Independence Day - 15th August 2002. I ndia has been harnessing the benefits provided by the Information & Communication Technologies (ICT) to provide integrated governance, reach to the citizens faster, provide efficient services and citizen empowerment through access to information. The aim is to redefine governance in the ICT age to provide SMART GOVERNANCE. Several significant initiatives have been taken at the Centre and the State level in this direction. A t the Central level, the government has extensively promoted the use of IT in managing its internal processes and has drawn up a ‘Minimum Agenda of e- Governance’. Further Ministries / departments have provision of 2 to 3 percent of their annual budgets to be spent on IT related activities. The government has enacted IT Act 2000 which provides legal status to the information and transactions carried on the net. S everal State Governments have also taken various innovative steps to promote eGovernance and have drawn up a roadmap for IT implementation and delivery of services to the citizens on-line. The applications that have been implemented are targeted towards providing G2B, G2C and B2C services with emphasis on...
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...Financial inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low income segments of society. Unrestrained access to public goods and services is the sine qua non of an open and efficient society. It is argued that as banking services are in the nature of public good, it is essential that availability of banking and payment services to the entire population without discrimination is the prime objective of public policy. The term "financial inclusion" has gained importance since the early 2000s, and is a result of findings about financial inclusion sand its direct correlation to poverty. Financial inclusion is now a common objective for many central banks among the developing nations. Joint Liability Groups (JLGs) of the poor such as landless, share croppers and tenant farmers is another innovative mechanism towards ensuring greater financial inclusion. This mechanism has already been operationalised in a few regions under a Pilot Project of NABARD. Commercial Banks have been actively promoting such groups for effectively purveying credit and other facilities to such clients. In the current budget the govt. has earmarked a sum of Rs 100 Crores for Banks to open branches in un banked and difficult areas. Biometric card based authentication devices, are being used by the bank’s Business Correspondents at the villages. So far, 344 districts have been identified by State Level Bankers Committee for 100 per cent financial inclusion...
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...Executive Summary In a country like India where 70 percent of its population lives in rural area and 60 percent depend on agriculture (according to the World Bank reports), micro-finance can play a vital role in providing financial services to the poor and low income individuals. Microfinance is the form of a broad range of financial services such as deposits, loans, payment services, money transfers, insurance, savings, micro-credit etc. to the poor and low income individuals. The importance of micro-finance in the developing economies like India cannot be undermined, where a large size of population is living under poverty and large number of people does not have an access to formal banking facilities. The taskforce on Supportive Policy and...
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...Farmers in rural communities of India relied on Department of Agriculture, government, universities, insurance companies etc. for various inputs such as weather, new and scientific farming practices and insurance coverage. There was an indirect link between farmers and manufacturer via input retailers who source from wholesalers. During harvest, farmers bring these produce to Mandis bearing their own transportation cost; where beans are auctioned to the traders and agents of the processing companies in an open outcry method. This system was flawed and always leaves the farmers in a disadvantageous position. ITC, one of India’s leading private company saw the opportunity to develop the concept of eChoupal. Its main objective is to re-engineer the procurement process of the sale of the farmer’s produce. ITC motivation to crating e Choupal is to revolutionize the agricultural sector and make it more technology driven. eChoupal (virtual market place) was introduced as an initiative to improve the supply chain by linking directly with farmers for procurement. It was also designed to play the role of a social gathering place, for the exchange of information as well as a place for e-commerce transactions. The eChoupals are operated by a sanchalak (operator), who also act as an ITC salesman. The process was simple as the farmer can take a sample to the kiosk, show the sanchalak who gives a quote. If the quote is deemed attractive by the farmer, he will accept and can receive payment within...
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...Information technology is one of the most important facilitators for the transformation of the Indian banking industry in terms of its transactions processing as well as for various other internal systems and processes. The various technological platforms used by banks for the conduct of their day to day operations, their manner of reporting and the way in which interbank transactions and clearing is affected has evolved substantially over the years. The technological evolution of the Indian banking industry has been largely directed by the various committees set up by the RBI and the government of India to review the implementation of technological change. No major breakthrough in technology implementation was achieved by the industry till the early 80s, though some working groups and committees made stray references to the need for mechanization of some banking processes. This was largely due to the stiff resistance by the very strong bank employees unions. The early 1980s were instrumental in the introduction of mechanisation and computerisation in Indian banks. This was the period when banks as well as the RBI went very slow on mechanisation, carefully avoiding the use of ‘computers’ to avoid resistance from employee unions. However, this was the critical period acting as the icebreaker, which led to the slow and steady move towards large scale technology adoption. The Indian banking sector is poised to become the world's third largest in asset size over the next 14 years...
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