Presented by

MBA 1st Semester ILAM Bangalore Campus

 Introduction
Old banking system New banking system Conclusion References

A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital market. A bank connects customers with capital deficits to customers with capital surpluses.

 PHASE 1 Early phase from 1786 to 1969 of Indian banks. PHASE 2 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. PHASE 3 New phase of Indian Banking system with the advent of Indian Financial & Banking Sector Reforms after 1991.

 ACCEPTING DEPOSITS

ISSUAL OF DEMAND

DRAFTS GRANTING LOANS & ADVANCES UNDERTAKING SAFE CUSTODY OF VALUABLES,IMPORTANT DOCUMENTS & SECURITIES BY PROVIDING SAFE DEPOSIT VAULTS OR LOCKERS

 DOCUMENTATION IS

MAINTAINED THROUGH LEDGERS ONLY. MINIMUM BALANCE FOR OPENING AN ACCOUNT WAS MORE DURING THIS PERIOD. CREDITS WERE GRANTED AT VERY HIGH RATE OF INTEREST. TOKEN SYSTEM FOR WITHDRAWAL OF CASH FROM THE ACCOUNT.

 POSSIBILITY OF HUMAN ERRORS .

TIME CONSTRAINT.
CUSTOMER RELATIONSHIP WAS LIMITED. OVER DRAFT WAS NOT AVAILABLE.

PROCESSING FEES WAS CHARGED FOR ALL

THE TRANSACTIONS . PASSING OF CHEQUES WAS DELAYED. LIMITED USE OF TECHNOLOGY.

WHY TECHNOLOGY IN BANKS ?

TO TRANSFORM FINANCIAL SERVICES INDUSTRY IN THE NET-

WORKED WORLD: -INCREASED OPERATION EFFICIENCY,PROFITABILITY & PRODUCTIVITY - SUPERIOR CUSTOMER SERVICE - PROVIDE SERVICES / PRODUCTS ACROSS A RANGE OF CHANNELS - TO BE FUTURISTIC AND HAVE TIME VALUE IN ALL ITS DEALINGS WITH CUSTOMERS -IMPROVED MANAGEMENT/ACCOUNTABILITY -BETTER CROSS SELLING ABILITY -MINIMAL TRANSACTION COST -IMPROVED FINANCIAL ANALYSIS CAPABILITIES.

Business process ReEngineering

Human Resource empowerment

Planning for Disasters

Pre-requisites for Technology

CORE BANKING

SOLUTIONS(CBS) Pooling data at central server

CUSTOMER

RELATIONSHIP MANAGEMENT(CRM)

ELECTRONIC FUND TRANSFER(EFT)

ELECTRONIC CLEARING SYSTEM(ECS)

ANY BRANCH BANKING RISK MANAGEMENT ATMS CARD MANAGEMENT

MOBILE BANKING

HACKING

PHISHING
PHARMING SKIMING TROJAN

The reforms to the old Banking system with the advent of technology has bought in a dramatic change in its functioning and has increased customer relationship.

Technology in Indian Banking[Commercial

Banking]. Traditional Banking System in India. Trend & progress of Banking in India, RBI 2006 Google search. www.antiphishing.com