Professional Documents
Culture Documents
Recent Technological Developments in Indian Banking: Vepa Kamesam Deputy Governor Reserve Bank of India
Recent Technological Developments in Indian Banking: Vepa Kamesam Deputy Governor Reserve Bank of India
Vepa Kamesam
Deputy Governor
Reserve Bank of India
1
The Technology Revolution
The impact of technology on the real &
financial world around the central banks
E-governance
Choice of Channels , Confidence and
Convenience to the end-user
Efficiency
Facilitating growth of products and services
2
Innovative Risk
Management
Complex Credit
Calculations
Global Operations
Pervasive Branch
Network
Mass Transaction
& Items Processing
3
Technology and Central Banks
The potential
Technology has Technology
Affected every Why Central offers
Core Banks are to improve
Central interested? internal
Banking processes
Function
4
Core Central Banking Functions
Currency
Management Financial &
Banking Monetary
Supervision Stability
5
Technology and Central Banks
So why are central banks interested?
The widespread adoption of technology by
the banking industry
The impact of technology on every single
core central banking function
Supervision and Regulation
Currency Management
Monetary & Financial Stability
The potential technology offers to central
banks for rendering more effective its
internal processes and functions
6
Technology and Banking
11
Currency Management and
Technology – Opportunities Galore
13
Monetary Policy – The Challenge (1)
The proliferation of IT has…
Real
Time
Electronic Gross
Dealing Settlement
Platforms
Delivery
Versus
Payments
17
PDO-NDS & SSS
PKI based Security CFMS
SFMS RTGS
RBI
INITIATIVES Clearing Corporat
INFINET
IN PAYMENT of India
&
SETTLEMENT
SYSTEMS Compliance with
IDRBT
BIS Core Principles
18
RBI Initiatives in Payment and
Settlement Systems (1)
The IDRBT
Network Externalities
The Indian Financial Network (INFINET)
Messaging Solutions
TheStructured Financial Messaging
System (SFMS)
Security
Public Key Infrastructure
19
JAMMU
CHANDIGARH
INFINET - Present
GUWAHATI
DELHI LUCKNOW
JAIPUR
KANPUR PATNA
AHMEDABAD
BHOPAL CALCUTTA
NAGPUR
BHUBANESHWAR
MUMBAI
PUNE
HYDERABAD VSAT Network
CHANDIGARH
INFINET - Proposed
GUWAHATI
DELHI LUCKNOW
JAIPUR
KANPUR PATNA
AHMEDABAD
BHOPAL CALCUTTA
NAGPUR
BHUBANESHWAR
MUMBAI
8 mpbs
PUNE
leased lineHYDERABAD VSAT Network
………..…………….….. ………..…………….….……..
… … …….…… … … …….…… … …
DAD-1 Bank 1
DAD-2 Bank 2
CFMS
Bank 3
Server
25
Real Time
Gross
CFMS
Settlement
Settlement
Intra Day Accounts
Liquidity
SSS Strip & Store
IFTP RBI Payments and
Processes Actg. Entry
Interface
INFINET NSS
29
Technology Vision of the RBI
Desk Top Decision Making Capability
33
RBI as a user of technology (3)
34
RBI as a user of technology (4)
www.rbi.org.in
A Store House of information for
customers and for the general public
36
RBI as a user of technology (6)
Customer Service
Multiple Delivery Channels
Coin & Note Dispensing Machines
For the general public
Interactive Voice Response System
For banks and financial institutions
Web server
For government customers
On the anvil…
A secured web server
SFMS/email based communication with
37
customers
Customer Service…(1)
Dissemination of information
The RBI website
Multiple Delivery Channels
Coin & Note Dispensing Machines
For the general public
Interactive Voice Response System
For banks and financial institutions
Web server
For government customers
On the anvil….
A secured web server
SFMS/email based communication with
customers
38
Customer Service...(2)
Improvements in payment and
settlement systems
MICR Clearing
Enabling faster clearing of
cheques
Cheque Truncation & E-Cheques
On the drawing board
ECS/EFT
Enabling T+2 settlement of our
equities market
National EFT
10000
8000
6000
4000
2001-02
2000
0
2002-03
ECS-CR ECS-DR EFT Tot al
40
RBI as a user of technology (7)
Customer Service
Improvements in payment and
settlement systems
MICR Clearing
Enabling faster clearing of cheques
Cheque Truncation & E-Cheques
On the drawing board
ECS/EFT
Enabling T+2 settlement of our equities market
National EFT
Enabling T+0 settlement of all customer funds
transfer transactions 41
Pre-requisites for Technology
Planning for
Disasters
42
The pre-requisites for Technology
43
Thank You
44