The successful completion of any task would be incomplete without mentioning the people who have made it possible. So it`s with the gratitude that I acknowledge the help, which crowned my efforts with success. Life is a process of accumulating and discharging debts, not all of those can be measured. We cannot hope to discharge them with simple words of thanks but we can certainly acknowledge them. I owe my gratitude to miss. Priya Jainani for his constant guidance and support. I would also like to thank the various department officials and staff who not only provided me with required opportunity but also extended their valuable time and I have no words to express my gratefulness to them.

Megh M.B.A. Part-I

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. 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. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. Currently (2009), overall, banking in India is considered as fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets, as compared to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. Banking environment has become highly competitive today. To be able to survive and grow in the changing market environment banks are going for the latest technologies, which is being perceived as an ‘enabling resource’ that can help in developing learner and more flexible structure that can respond quickly to the dynamics of a fast changing market scenario. It is also viewed as an instrument of cost reduction and effective communication either people and institutions associated with the banking business. The banking scenario has changed drastically. The changes which

have taken place in the last ten years are more than the changes took place in last fifty years because of the institutionalization, liberalization, globalization and automation in the banking industry. Indian banking system has several outstanding achievements to its credit, the most striking of which is its reach. Indian banks are now spread out into the remote corners of our country. In recent years the Indian banking system has come up with many innovations in order to change the psychology of the customer.

Innovation in banking should be directed at improving the infrastructure that fosters efficient financial services and international trade. In this work, innovation theory is used to show how modern payment systems have transformed the technology of banking and facilitated changes in the strategy and structure of financial services organisations. Design, implementation and dissemination of payment systems are described and the analysis of their costs and benefits is combined with case studies of banks undergoing change. By studying firm capabilities, competencies, and resources, the approach is extended to services in general and linked to the ability of firms to compete and promote national economies. Payment systems vary and advanced and developing economies face obstacles in their legal and technical infrastructure, and maturity of banks. By adopting an international perspective, the book offers a unique comparative analysis that shows what kind of investments are likely to be effective.

III. II. Electronic System Conclusion Bibliography . • • Types of innovative Banking.CONTENTS • • • • Acknowledgement Executive Summary Preface Contents  About Banking  Banking In India  Current Structure of Indian Banking  Innovation In Indian Banking Sector 1 4 5 6 7 13 23 I. Types of Product & Servies.

Italy. and ATM. The oldest bank still in existence is Monte dei Paschi di Siena. . Standard activities : Banks act as payment agents by conducting checking or current accounts for customers. individuals and governments. Banks also enable customer payments via other payment methods such as telegraphic transfer. by accepting term deposits. Banks borrow money by accepting funds deposited on current accounts. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account.ABOUT BANKING A bank is a financial intermediary and appears in several related basic forms:  a central bank issues money on behalf of a government. and collecting cheques deposited to customers' current accounts. and by investing in marketable debt securities and other forms of money lending. either directly or through capital markets. Banking is generally a highly regulated industry. EFTPOS. paying cheques drawn by customers on the bank. A bank connects customers with capital deficits to customers with capital surpluses on the world's open financial markets. and government restrictions on financial activities by banks have varied over time and location. and a bank account is considered indispensable by most businesses. and by issuing debt securities such as banknotes and bonds. headquartered in Siena. Banks provide almost all payment services. Banks lend money by making advances to customers on current accounts. and has been operating continuously since 1472. by making installment loans. and regulates the money supply  a commercial bank accepts deposits and channels those deposits into lending activities.

. often visiting customers at their homes or businesses  Telephone banking is a service which allows its customers to perform transactions over the telephone without speaking to a human  Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. mostly for private banking or business banking.    A branch is a retail location Call center Mail: most banks accept check deposits via mail and use mail to communicate to their customers. by sending out statements  Mobile banking is a method of using one's mobile phone to conduct banking transactions  Online banking is a term used for performing transactions. but non-bank lenders provide a significant and in many cases adequate substitute for bank loans. and lend most funds to households and non-financial businesses. and money market funds. or via a videoconference enabled bank branch. e. over the Internet  Relationship Managers. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine). cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings too Channels : Banks offer many different channels to access their banking and other services:  ATM is a machine that dispenses cash and sometimes takes deposits without the need for a human bank teller. payments etc.g.Banks borrow most funds from households and non-financial businesses.clarification. Some ATMs provide additional services.

derivatives) Term loan . interest rates.Products : Retail         Business loan Cheque account Credit card Home loan Insurance advisor Mutual fund Personal loan Savings account Wholesale       Capital raising (Equity / Debt / Hybrids) Mezzanine finance Project finance Revolving credit Risk management (FX. commodities.

The three banks merged in 1921 to form the Imperial Bank of India. her move was swift and sudden. At the same time. which. 1969. The first banks were The General Bank of India. the Indian banking industry had become an important tool to facilitate the development of the Indian economy. . This was one of the three presidency banks. both are now defunct." The meeting received the paper with enthusiasm.BANKING IN INDIA Banking in India originated in the last decades of the 18th century. expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation. The Government of India issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19. 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. which originated in the Bank of Calcutta in June 1806. became the State Bank of India. upon India's independence. and a debate had ensued about the nationalization of the banking industry. which started in 1790. control and regulations of Reserve Bank of India. it had emerged as a large employer. For many years the Presidency banks acted as quasicentral banks. then Prime Minister of India. Thereafter. which almost immediately became the Bank of Bengal. Indira Gandhi. which started in 1786. By the 1960s. banks in India except theState Bank of India or SBI. Nationalisation Despite the provisions. continued to be owned and operated by private persons. and Bank of Hindustan. as did their successors. The oldest bank in existence in India is the State Bank of India.


. the approach is extended to services in general and linked to the ability of firms to compete and promote national economies.Innovation in banking Innovation in banking should be directed at improving the infrastructure that fosters efficient financial services and international trade. the book offers a unique comparative analysis that shows what kind of investments are likely to be effective. and resources. Design. and maturity of banks. By studying firm capabilities. competencies. By adopting an international perspective. In this work. implementation and dissemination of payment systems are described and the analysis of their costs and benefits is combined with case studies of banks undergoing change. Payment systems vary and advanced and developing economies face obstacles in their legal and technical infrastructure. innovation theory is used to show how modern payment systems have transformed the technology of banking and facilitated changes in the strategy and structure of financial services organisations.

“application of electronic technology towards transfer of funds through an electronic terminal. rising consumer expectations and shrinking margins of banks. which lead to reduction in cost. developed. and enhancement of productivity. without having to step to office of the branch. from one account to another.” It is often known as banking on net. transfer money between accounts. Meaning: E-banking means. Usage of technology by banks is due to challenge of competition. customers are benefited by unlimited accessibility through the network of Automated Teller Machines. personal computers or even through mobile phones. . efficiency and customer convenience. bill payments. It does not involve any physical exchange of money. and transaction histories. The growth of e-commerce and Internet has transformed the world into the GLOBAL VILLAGE.Types of Innovative Banking E-BANKING Introduction: With the trend of globalization all over the world. but it’s all done electronically. it is difficult for any nation whether big or small. payments. Fast development in electronic technology has concerned the computers to take over the bank counters and to convert brick banking into electronic banking. Customer can perform various banking transactions such as balance enquires. With the advent of e banking. computer or magnetic tape to conduct various transactions like cash receipts. transfer of funds etc.INNOVATIONS IN INDIAN BANKING SECTOR Category I: Types Of Innovative Banking Category II: Types Of Product & Services Category III: Electronic Systems I . using the Internet. to remain isolated from what is happening around.

Process of E-Banking/ procedure of E-Banking : E-Banking process can be explained with the help of following diagram and explanation as under: Log on to website Verificatio n Of password Final Approval Credit Card request Processing Of informatio n .Features of e banking:     Anywhere any time banking: customers can avail banking facility while sitting at their home/office. Cash less banking: E-Commerce also provides feature of cash less banking as cash is not require in raw form but electronic cash like debit or credit cards may serve the purpose. Globalization of service: E-Banking has a special feature of globalizing bank’s services all over.  Promptness: Another feature of E-Commerce is provides promptness in services. Intense competition: E-Commerce is a product of handling intense competition among various banks.

To merchant Trader Limitations of E Banking:  Problems of security:  High cost:. and be prepared for growth. Core banking solutions : Core banking solutions are banking applications on a platform enabling a phased.Advantages of E-Banking: Importance of E-Banking can be explained from four aspects: Advantage s To banks To cust ome rs To Govt. Bank customers may access their funds and other simple transactions from any of the member branch offices. reduce costs.  Wrong assumption by people: CORE BANKING Core banking is a general term used to describe the services provided by a group of networked bank branches. strategic approach that is intended to allow banks to improve operations. .  Lack of awareness:  Lack of computerization:.

investment bankers offer information . especially internet and information technology has led to new ways of doing business in banking. middle office.commodities. While large service investment banks offer all of the lines of businesses. smaller ones sell side investment firms such as boutique investment banks and small broker-dealers focus on investment banking and sales/trading/research. and equity securities. foreign exchange. Investment banks offer services to both corporations issuing securities and investors buying securities. An investment bank may also assist companies involved in mergers and acquisitions. CORPORATE BANKING Financial services to large corporate & MNCs Services:  Overdraft facility  Domestic and international payments  Funding  Channel financing  Letters of guarantee  Working capital facility for domestic & international trade INVESTMENT BANKING An investment bank is a financial institution that assists individuals. both sell side and buy side. Main activities : An investment bank is split into the so-called front office. respectively. corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities.Core Banking Solutions is new jargon frequently used in banking circles. and back office. fixed income instruments. trading of derivatives. working simultaneously on different issues and increasing efficiency. The advancement in technology. and provide ancillary services such as market making. These technologies have cut down time. For corporations.

insurance. SSI. It represents any banking. small business) . investment) Multiple channels of distribution (call center. RURAL BANKING It provides & regulates credit services for the promotion & development of rural sector mainly agriculture. investment bankers play a very important role in issuing new security offerings. branch internet) Multiple customer groups (consumer. which is mainly focused towards personal sector. credit cards. cottage and village industries. Therefore.  Examples Of Regional Rural Banks are NABARD. and hence loss of business. Retail banking today is characterized by three areas:    Multiple products (deposits. SYNDICATE BANK. It includes any business that is conducted through branch network. which be not wholesale based. HARYANA STATE COPERATIVE APEX BANK LIMITED. UNITED BANK OF INDIA  KIOSK BANKING NRI BANKING This facility is designed for diverse banking requirements of the vast nri population spread across the globe. credit services and some form of financial advice.  NRE (Non Resident External Account)  NRO (Non Resident Ordinary Account)  FCNR (Foreign Currency Non Resident Account) RETAIL BANKING Meaning Retail banking is activity devised in past few years and now used extensively. It encompasses all institutions that provide a related range of banking services—money deposit. handicrafts and many more.on when and how to place their to an investment bank's reputation.

 Technological factors also added to the requirement convenience of using credit cards. frequent reduction in cash reserve ratio resulting in pumping in of liquidity.Need for retail banking  Economic prosperity and the consequent increase in the purchasing power of consumer. WHOLESALE BANKING Wholesale banking is the provision of services by banks to the like of large corporate clients. which are conducted between financial services companies and institutions such as banks. market making. institutional customers (such as pension funds and government entities/agencies). have all forced banks to be in search of alternative opportunity to deploy their funds. internet and phone banking anywhere and any time banking has also flood customers into banking. which is the provision of banking services to individuals. With the large corporate borrowers having diversified the sources to fund their financial requirements. international trade finance businesses. insurers. fund management. In essence. and services offered to other banks or other financial institutions. . mergers and acquisitions. fund managers. Wholesale banking contrasts with retail banking.) Modern wholesale banks are engaged in: finance wholesaling. declining bank rate leading to decline in spreads unattractive yields on government securities etc.   Decline in interest rates have also contributed to increase retail banking. underwriting. and stockbrokers. mid-sized companies. consultancy. real estate developers and investors. (Wholesale finance means financial services. wholesale banking services usually involve high value transactions.

many banks have introduced the 'No Frills' Savings Account.II. Mobilebanking free of cost. You can even avail of services like NetBanking. .city cheques  Fund transfer  Balance enquiry  Purchase of demand drafts pay order  Repayment of loan account DEMAT SERVICES  It offers secure and convenient way to keep track your securities and investment over a period of time without the hassle of handling physical documents  It provide facility of online trading “NO FRILLS” SAVING ACCOUNT In an effort to make banking simpler and more accessible for customers. TYPES OF PRODUCTS & SERVICES TOTAL BRANCH AUTOMATION  Speed up bank transactions and less error  More customer friendly and flexible  Towards paperless transactions ANY BRANCH BANKING It is a facility for customers to operate their account from any of the same banks network branch Facilities available:  Cash withdrawal & Cash deposits  Account statement  Facility to issue multi. which offers you all the basic banking facilities.

(Agent assisted calls will be charged*) Get Free Quarterly Account Statements. MICROFINANCE It refers to a movement that envisions a world in which low income households have permanent access to a range of high quality financial service to . Sweep-In and Super Saver on your account. Enjoy free Cash/ Cheque Deposits at Branch/ATM Free cash withdrawal transactions at any Bank ATMS through Debit Card* Free Cash withdrawal per month at the Branch.a. (plus applicable taxes) for each applicant.       International Debit Card available only on request at the branch @ Rs.50/.  First Chequebook consisting of 25 leaves free and subsequent cheque books to be charged at the rate of Rs 5/. Instruct for payment over the phone or through the Internet*.   Bank conveniently with Free Net Banking Enjoy Free IVR based Phone Banking. an instant solution to all your frequent utility bill payments. Access your account through a Free ATM Card.  Free Email Statement facility .Features & Benefits:  Access a wide network of branches and over a thousand ATMs across the country to meet all your banking needs.   Free InstaQuery facility Take advantage of BillPay.per transaction.   Enjoy Free InstaAlerts via e-mails or SMS Avail facilities like Safe Deposit Locker.per cheque leaf. Additional Branch Cash withdrawals in the month will be charged @ Rs. 100/p.

build assets. Banks in India that lend for agricultural purposes usually offer the KCC.for Kharif Crops. and a their income producing activities. of which crop loan and working capital components has to be renewed annually. working capital or investment credit for viable agriculture purpose. The card is valid for 3 years and subject to annual renewals. Int rate is 7% (SI) co-op bank nahan H. The Kisan Credit Care allows farmers to have cash credit facilities without going through the credit screening processes repeatedly.[1] KCC OFFERED BY IDBI Crop Loan with Kisan Credit Card Credit to Farmers/ Group of farmers for Crop Loan. Extent of Exposure : As per scale of finance specific to the crop and KCC norms. Kisan Credit Card Scheme: Himachal Pradesh Details of Kisan Credit Card Scheme ParticularsDescription Name of the Scheme Kisan Credit Card Scheme Sponsored by State Government Funding Pattern Rs.for Rabi Crops. cards. tenant cultivators and Share croppers / Individual farmer having agreement with institution. RBI (Reserve Bank of India). Who is the eligible for the Loan? All Farmers/ Owner cultivators.P. and NABARD (National Bank for Agricultural and Rural Development) in 1998-99 to help farmers access timely and adequate credit. KISAN CREDIT CARD Kisan Credit Cards were started by the Government of India. and extensions are offered for up to 4 years. stabilize consumption and protect against risks. Ministry/Department State Government PSU Description 1 Maximum . 50000/. Tenure The card would be valid for 5 years. 50000/. Withdrawals are made using slips. Repayment can be rescheduled if there is a bad crop season. Rs.

10000/-. Benefits Benefit Type Loan. 50000/. How to Avail Approach to the State Headquarters and Branch Manager at District Level Branches Validity of the Scheme Introduced On 31 / 03 / 2006 Valid Up to 31 / 03 / 2012 PLASTIC MONEY Plastic money is the generic term for all types of bank cards. smart cards.Credit Cards. 5 Collateral Security Charge on land in case loan is above Rs. Smart Card. add on cards and so on. debit cards. ATM Cards : Automated Teller machine (ATM) cards is capable of doing variety of functions. Eligibility criteria Individual / Society. Charge Cards. etc. They are the alternative to the cash or the standard 'money'. Plastic money also known as Plastic cards acts as a vital tool for every day transaction of people today. 50000/.ATM cum Debit Card. 2 Eligibility Individual / Society.for Kharif Crops.It can perform both cash and non-cash transactions in secured environment.Limits Rs. * * * ATM Cash Transactions includes deposits and withdrawals Non cash transactions incude Providing Mini Statement of last five transactions. credit cards.and two sureties if loan is below Rs. 4 Repayment period Kharif 31 January Rabi 31 July.Community.Debit Card. growing access to internet among the customers and convenient modes of delivery and payment. 10000/. 6 Margin Stipulation As per nature of the loan Beneficiaries Individual. Co-branded cards. 3 Purposes Agriculture.In some banks upto last ten transactions * Balance enquiry .for Rabi Crops. Rs. There has been a growth on electronic payment due to the shift in technology. The various Plastic cards include ATM cards. Plastic money is used to refer to the credit cards or the debit cards that we use to make purchases in our everyday life.

Otherwise late payment fee is levied in the next billing statement. Debit Cum ATM Card: This is most common nowadays.Master Card and VISA are global non-profit organizations who promote the growth of the card business throughout the world.The credit card holder has to make payment for the dues before the due date.Telephone bills etc) Debit Card The bank issues debit card only if the person has an account in the bank. Normally. All credit and debit cards are affiliated to two major issuers-VISA and Master Card.The same debit card can be used to draw cash from the ATM and also make payment to the shops for purchases.They check the balance and deduct the amount from the bank balance online.drafts etc. Charge Cards : .the total amount charged is instantly reduced from the bank balance of the account holder.a limit of the credit will be fixed by the bank for the amount of purchases to be made by the customer based on the net worth of the customer. Credit Cards: This card enables the client to obtain goods or services from the various shops having arrangement with the issuing agency even if there is no balance in his/her savings or current account.This is two in one card.This card is useful to make payment from Member Establishments (ME) who have arrangements with the card issuing bank or agency.* * * * Stop Payment instructions Transfer of funds between accounts Requisition of Cheque books. Bill payments ( electricity bills.They have built vast network of Member Establishments so that customers can use the cards worldwide for their debit and credit purchases.The bank assumes that the loan will be repaid by the customers at later date. When a debit card is issued to make the payment.

a certain percentage is contributed to the organization or institution by the card issuer.a late fee is levied in the next billing statements of the credit card holder.then the client is likely to be considered as a defaulter and he has to pay a steep late payment charges.Currently.. These cards are not acceptable at many outlets.But. Photo Card : When a Photo is imprinted on the card.A Charge card has all features of credit card. after using the charge card the entire payments of the bills has to be made by the due date. AMEX (American Express) and Diners Club card are well known branded charge cards. But wide variety of special privileges are enjoyed by the AMEX card holders and Diners Club Cardholders.signature or payment authorization is required for using this card. Affinity Card : The card issuer has a tie up with popular organizations and institutions which are often non-profit organizations like Stanchart Cricket Cards or City WWF card. The exact amount of purchase is deducted from smart card during payment. Smart Cards : A smart Card contains an electronic chip which is used to store Cash.When a card is used.In such helps to identify the user of the credit card and is considered to be safer. But in case of Credit cards. the client is not declared as a defaulter if he misses to pay by due date. Global Card : . No identification. In many shops etc.If it is failed to be done. This is most useful to pay for small purchases for example in Fairs. These care are typically meant for the high income group categories and companies. this product is available in very developed countries like US.Photo card can also be used as identity card.They have their own merchant establishments and tie ups and does not depend on the network of Master card or VISA.

credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). .when they pay for the fuel using petro card. The earliest mobile banking services were offered over SMS. mbanking. Children or other family members of the original card holder.the Indian mode of payment has shifted from currency to electronic mode. parents. MOBILE BANKING Mobile banking (also known as M-Banking. With the introduction of the first primitive smart phones withWAP support enabling the use of the mobile web in 1999. Today. Add On Cards : It is a privilege offered to the spouse. SMS Banking) is a term used for performing balance checks.It offers a scheme of gifting the points to the customers. All expenses incurred on add on card are billed to the primary card holder. account transactions.The new electronic payment and settlement act should follow the strict norms for banks and merchants to make secure payments and prevent money laundering as the transactions through plastic money will be increasing and increasing in the near future. secured and speedy mode of transaction.It is convenient.Normally. payments. Petro Card : Some Petroleum companies allow customers to pay for the fuel through electronic medium.Global cards can be used as credit cards instead of cash and traveler cheques while traveling abroad to foreign countries for business or personal reasons. an issuing bank permits two add on cards per credit card.This is due to the high money valued transactions and more risk involvement. the first European banks started to offer mobile banking on this platform to their customers [1]. Co-branded credit cards like IOC-Citi bank and HPCL-ICICI bank are the co-branded petro cards avaiable in the market.

and financial services with the help of mobile telecommunication devices. Trends in mobile banking : The advent of the Internet has enabled new ways to conduct banking business. to administer accounts and to access customised information. Mobile phone banking may also be used to help in business situations. downloaded to the mobile device. A mobile banking conceptual model In one academic model. The accounting and brokerage services are therefore offered invariably in combination with information services. Apple'sinitial success with iPhone and the rapid growth of phones based on Google's Android (operating system)have led to increasing use of special client programs.The scope of offered services may include facilities to conduct bank and stock market transactions.Mobile banking has until recently (2010) most often been performed via SMS or the Mobile Web. such as online banks. The non-transaction-based services of an informational nature are however essential for conducting transactions . on the other hand.[2] mobile banking is defined as: Mobile Banking refers to provision and availment of banking. . Information services.for instance. called apps." According to this model Mobile Banking can be said to consist of three interrelated concepts:    Mobile Accounting Mobile Brokerage Mobile Financial Information Services Most services in the categories designated Accounting and Brokerage are transaction-based. may be offered as an independent module. Such institutions still account for a tiny percentage of the industry. online brokers and wealth managers. resulting in the creation of new institutions. balance inquiries might be needed before committing a money remittance.

With mobile technology. Mobile Banking Services : Mobile banking can offer services such as the following: Account Information : Mini-statements and checking of account history Alerts on account activity or passing of set thresholds     Monitoring of term deposits Access to loan statements Access to card statements Mutual funds / equity statements Insurance policy management Pension plan management Status on cheque. change and deleting of payments) PIN provision. banks can offer services to their customers such as doing funds transfer while travelling. According to the GSM Association and Ovum. stop payment on cheque Ordering cheque books Balance checking in the account Recent transactions Due date of payment (functionality for stop. receiving online updates of stock price or even performing stock trading while being stuck in taffic.Over the last few years.5 billion (of which more than 2 billion are GSM). Smartphones and 3G connectivity provide some capabilities that older text message-only phones do not. Change of PIN and reminder over the Internet         . the mobile and wireless market has been one of the fastest growing markets in the world and it is still growing at a rapid pace. the number of mobile subscribers exceeded 2 billion in September 2005. and now exceeds 2.

the merchant receives cash and the system credits the client's bank account or mobile wallet. and Transfers         Domestic and international fund transfers Micro-payment handling Mobile recharging Commercial payment processing Bill payment processing Peer to Peer payments Withdrawal at banking agent Deposit at banking agent A specific sequence of SMS messages will enable the system to verify if the client has sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at the agent. Withdrawals. Investments :  Portfolio management services  Real-time stock quotes  Personalized alerts and notifications on security prices  mobile banking Support :  Status of requests for credit. Deposits. stolen) cards Payments. the merchant hands the client cash and debits the merchant's account. When depositing money. and insurance coverage  Check (cheque) book and card requests  Exchange of data messages and email. including complaint submission and tracking . Blocking of (lost. In the same way the client can also withdraw money at the merchant: through exchanging sms to provide authorization. including mortgage approval.

Type of Electronic Systems ATM Introduction: ATM facility was started in early 1990’s by foreign banks like HSBC. more "tech-savvy" customer segment. For the purpose of withdrawing cash from ATM machine. An automated teller machine (ATM) is a computerized telecommunications device that provides the customers of a financial institution with access to financial transactions in a public space without the need for a human clerk or bank teller. mobile banking will be attractive mainly to the younger. ATM is made to work 24 Hrs a day. City bank. A third of mobile phone users say that they may consider performing some kind of financial transaction through their mobile phone. On most modern ATMs. The account number and credit limit of customers are magnetically embedded on a strip of the tape on the back of card. But most of the users are interested in performing basic transactions such as querying for account balance and making bill payment. ATM Location Content Services :  General information such as weather updates. ATM enables user to perform banking transactions by actually interacting with the human teller. III. the customer is identified by inserting a plastic ATM card with a . Its function is to receive and dispense cash and to handle routine financial transactions. This is one of the unattended or unmanned devices usually located on or off the bank’s premises. plastic currency and debit cards are used. news  Loyalty-related offers  Location-based services Based on a survey conducted by Forrester.

. such as an expiration date or CVC (CVV).magnetic stripe or a plastic smartcard with a chip. Security is provided by the customer entering a personal identification number (PIN). that contains a unique card number and some security information.

RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a 'real time' and on 'gross' basis. The acronym 'RTGS' stands for Real Time Gross Settlement. 'Gross settlement' means the transaction is settled on one to one basis without bunching with any other transaction.g. The transactions are settled as soon as they are processed.g. . the payment is taken as final and irrevocable. This is the fastest possible money transfer system through the banking channel. Transactions which are bulk and repetitive in nature are routed through Electronic Clearing Service (ECS) which is further of two categories viz ECS-Credit (one debit and multiple credits e. Settlement in 'real time' means payment transaction is not subjected to any waiting period. bill payments. Dividends) and ECS-Debit (one credit and multiple debits e. The Reserve Bank of India (India's Central Bank) maintains this payment network. Considering that money transfer takes place in the books of the Reserve Bank of India. ECS is currently provided in around 75 centres in India.). SIPs etc.Working of ATM Insertion of Card into ATM Transmission of Tape data to Processor Activatio n of account Actual Transaction Clicking of keys of keyboard Display of details on screen Real Time Gross Settlement India has two main electronic funds settlement systems for one to one transactions: the Real Time Gross Settlement system (RTGS) and the National Electronic Fund Transfer system (NEFT). Salary.

corporate and universal banks. e-banking. treasury. . wealth management and CRM requirements of retail.Islamic banking. Mohandas Pai was closly associated with it.V. [1] CA. and is one of the major player in the arena of core banking in Indian and Asian banking domains. T.FINACLE Finacle universal banking products are designed to address the core banking. It was developed by Infosys.

Information Systems. Reforms have changed the face of Indian banking and finance. Etc “With new opportunities unfolding Banking Sector. It has become globally competitive and diverse aiming. The banking sector has improved manifolds in terms of Technology. Product & Services.CONCLUSION The BANKING sector in India has become stronger in terms of capital and the number of customers." . India is emerging as a global power in banking services in the next two decade. Exposure to worldwide competition and deregulation in Indian financial sector has led to the emergence of better quality products and services. Deregulation. at higher productivity and efficiency.

com White Finance biz. Principles of banking by AIBA (All India banking associations) .com Value notes.central bank of Banking Law and Practice by Sharma publications.BIBLIOGRAPHY Gahoo Banking theory and practices by kalyani publishers.wikepeadia.

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