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Technology and Indian Banking Sector


Submitted By induarul
Words 3234
Pages 13
ISSN No-2230-7850


Research Paper

Technological Developments in Indian Banking Sector
Dr. B.S. Sawant,
Director, K.B.P. Institute of Management Studies and Research, Satara, Research Guide

Abstract: Banking sector plays a significant role in development of Indian economy. So banks need to optionally leverage technology to increase penetration, improve their productivity and efficiency, deliver cost-effective products and services, provide faster, efficient and convenient customer service and thereby, contribute to the overall growth and development of the country. Technology enables increased penetration of the banking system, increases cost effectiveness and makes small value transactions viable. Besides making banking products and services affordable and accessible, its simultaneously ensures viability and profitability of providers. Technology allows transactions to take place faster and offers unparallel convenience through various delivery channels. Technology enhances choices, creates new markets, and improves productivity and efficiency. Effective use of technology has a multiplier effect on growth and development.
In the area of payment systems, there have been significant advancements of technology on the customer transactions. India is one of the country that has effectively tackled huge volumes of paper instruments in cost effective manner. The Magnetic Ink Character Recognition (MICR) cheque clearing System, cheque transaction system(CTS) is another innovative solution that has been developed to enhance the efficiency of paper-based clearing system. CTS has eliminated the need for physical movements of cheques. The National Electronic Clearing System (NECS), with its centralized processing capability coupled with the implementation of CBS has brought down the clearing and settlement cycle. Electronic Fund

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