Digital revolution in the Indian banking sector

Abstract

The need for computerization was felt in the Indian banking sector in late 1980s, in order to improve the customer service, book-keeping and MIS reporting. In 1988, Reserve Bank of India set up a Committee on computerization in banks headed by Dr. C. Rangarajan. Banks began using Information Technology initially with the introduction of standalone PCs and migrated to Local Area Network (LAN) connectivity. With further advancement, banks adopted the Core Banking platform. Thus branch banking changed to bank banking. Core Banking Solution (CBS) enabled banks to increase the comfort feature to the customers as a promising step towards enhancing customer convenience through anywhere and anytime banking. The Indian banking industry has become a poster child having taken rapid strides over the past decade or so. Once playing catch-up with leading global practices, the industry cut in half the number of unbanked individuals in India between 2011–2015, adding almost 300 million first time bank account holders.In this context the researcher intended to study the pulse and prospectus of digital banking.