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 with the growth in "the usage of new channels like mobile phones, propelled by 3G and smart phone technology characterising the next decade in Indian banking", says a report by Boston Consulting Group.
"The domestic banking industry is set for an exponential growth in the coming years with its assets size poised to touch $28,500 billion by the turn of the 2025 from the current asset size