Technological Innovations in Indian Banking Sector

Aruna R. Shet

Abstract: The banking sector in India has seen a number of changes. And to meet the challenges of changing needs and perceptions of customers, new regulations over the years and great advances in technologies, most of the banks have begun to take an innovative approach towards banking with the objective of creating more value for customers in the banks. Today we have electronic payment system along with currency notes. India?s financial sector is moving towards a scenario, where it can have new instruments along with liquidity and safety. Arrival of card, introduction of Electronic Clearing Service (ECS) in late 1990?s, introduction of Electronic Funds Transfer, Real Time Gross Settlement (RTGS), introduction of NEFT (National Electronic Funds Transfer), mobile banking, online banking are the various innovations in banking. Banks are investing heavily in adoption of these innovations. This paper highlights the benefits of changing banking trends.

Keywords: Indian Banking, Innovative Banking, Technological innovations, Recent Trends, Challenges in Banking Industries.