Innovations in Banking Sector

1143 WordsMar 7, 20115 Pages
INNOVATIONS IN BANKING SECTOR INTRODUCTION The term innovation means”to make something new”. Banks no longer restricted themselves to traditional banking activities but explored newer avenues to increase business and capture new market. INDIAN BANKING SECTOR From 1806 qualitative & quantitative changes have been taken place. With 1935 regulation RBI was proclaimed as central bank of India. In 1990’s greater emphasis was placed on technology & innovation. New concepts like personal banking, retail banking, total branch automation etc were introduced. INNOVATIONS IN INDIAN BANKING SECTOR TYPES OF INNOVATIVE BANKING 1. E-BANKING Enables people to carry out most of their banking transactions using a safe website which is…show more content…
Most of the banks have begun to take an innovative approach towards banking with the objective of creating more value for customers, and consequently, the banks. Some of the significant changes in the Indian banking sector are discussed below: ------------------------------------------------- Technology for Value Creation The use of information technology in the Indian banking sector was a corollary of the liberalization process initiated in the country in the early 1990s...------------------------------------------------- Rural India Catching UpWith a majority of the Indian population living in rural areas, rural banking forms a vital component of the Indian banking system. Besides, rural banking operations in India are rather different from urban operations, due to the strong disparity that exists between urban and rural life, and the needs of these two sections of people... | | ------------------------------------------------- Banking Beyond Banking While traditionally, banking meant 'borrowing and lending', in the latter part of the 20th century, the word took on a different meaning altogether. Banks no longer restricted themselves to traditional banking activities, but explored newer avenues to increase business and capture new markets... |
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