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Abstract
Indian banking has changed immensely in the past few years. The changes are multiple and at a fast pace in the term of transformation of technology advancement. It has become completely dependent on technology. Liberalization, privitazation and globalization policy brings various new players such as private sector banks and foreign banks in the banking sector. It increased the level of competition in Indian banking sector. The immediate impact of such competition has given rise to the adoption of new technology. Today most of the banking happens while you are in the office or attending an important meeting. ATMs are at your doorstep. Banking services are accessible 24x7. There are more plastic cards in your wallet than currency notes. A huge part of this development is due to introduction of IT Banks today operate in a highly globalized, liberalized, privatized and a competitive environment. In order to survive in this environment banks have to use IT to serve and offer better services to their customers. Electronic banking has emerged out of such an innovative development. The study aims at the progress made by Indian banking sector in adoption of technology. The progress in e-banking in Indian banking industry is measured through various parameters such as Computerization of branches, Core Banking, Installation of Automated Teller Machines, Transactions through Retail Electronic Payment Methods etc. Statistical and mathematical tools such as simple growth rate, percentages and averages etc are used. The article also highlights the challenges faced by Indian banks in adoption of technology and recommendations are made to tackle these challenges.
Keywords : e-banking, core banking, electronic payment, information technology
Introduction
E-banking is the term that signifies and encompasses the entire sphere of technology initiatives that have taken place in the banking industry. E-banking is a generic term making use of electronic channels through telephone, mobile phones, internet etc. for delivery of banking services and products. The concept and scope of e-banking is still in the transitional stage. E-banking has broken the barriers of branch banking.
Evolution of E-Banking
E-banking has its origin in UK and USA in 1920s. It became prominently popular during 1960s through electronic funds transfers and credit cards. The concept of web-based banking came into existence in Europe and USA in the...