Internet Banking in India - What Hinders Technology Spread in Rural Areas

Abstract

India is predominantly an agricultural country and its about 70 % of the population resides in rural areas . With the spread of higher education hubs towards rural areas in the shape of spread of more and more technology and management institutes towards rural areas , dimension of acceptance of technology banking products is increasing in rural clientele and the fear of security in use of the same is also likely to have change because the new generation of rural clientele is gradually learning more and more. The information technology is becoming an important factor in the future development of financial services industry and specially banking industry in India. Banks are faced with a number of important questions, for example, how to take full advantage of new technology opportunities, how e-developments change the ways customers interact with the financial services provider etc. If we go through the data, we will find that India has an internet penetration of 3.6% only which requires attention of Indian Banks.We have some of our limitations which need to be reviewed and necessary strategy is to be sorted out to make the facility more popular and more reachable among the general masses.Some of limitations are given below.- Higher rural population.- Late adoption of technology by India.- Lack of long term planning by Banks.- Lack of awareness among potential users.- Optimum utilization of technology in hand.On the other hand, there are some drivers of change like cost effectiveness, competition etc. We should never forget that a very high percentage in rural areas is capable to handle new technology if presented to them in their mother tongue. We cannot ignore the fact that the one way of implementation goes through rural India.