Digital Banking – Journey of a Nation

Abstract

Banking sector play a very crucial role in the financial system of an economy. It facilitates the creation and maintenance of a robust payment system to meet the requirements of businesses, the government and general public. It also serves as a credit delivery mechanism, which can be accessed by those who are in need of funds. Overall, the banking sector represents the centre of the economic activities of a nation Thus, a strong and healthy banking system is essential for economic growth. The Indian banking sector, at present is witnessing an IT revolution and is heading towards digitalisation. The internet and IT has entirely changed the way of functioning of banks and the financial institutions. The Information technology was introduced in the Indian banking sector in the late eighties. However, current phase of IT revolution is more intense and impactful, which probably has the potential to change not only the banking landscape, but the overall structure and direction of the economy. The modernization of banking sector, after the introduction of IT and internet has benefitted both the customers as well as banks. The banking now is not just limited to transactions in the branches, but it has made its way into hand held devices like smartphones and tablets. The current phase of banking may be aptly called as ‘Digital Banking’.