CU-BCOM-SEM-V-Banking Theory and Practice-Second Draft

 The tele-money and move of transmitted office are given by banks to build the quick exchange of money.  Trustworthy tasks for the particular purposes.  Safe guardianship of cash and other important things of clients.  Locker office has been offered by banks to keep the resources of public safe. The storage spaces are made into solid little boxes in cabinets with arrangement of twofold locking. The storage spaces are kept in the solid room of banks.  To acknowledge the assessment and non-charge receipt, banks follow up for the benefit of the Government. The different government payment, for example, annuity instalments and duty discounts discover place in banks. 12.7 SUMMARY  ICT represents data and correspondence innovation that gives admittance to data through telecom and a different arrangement of mechanical instruments and assets used to impart, and to make, spread, store and oversee data.  ICT surmises the innovation which comprises of electronic gadgets and related human intuitive materials that empower the client to utilize them for a wide scope of educating and learning measures notwithstanding close to home use.  All over the world, banks are as yet battling to track down a mechanical answer for address the difficulties of a rapidly changing climate and a client's interest for items and administrations. The new innovative changes that have brought to the financial area are immense in their effect on officials, representatives, and clients of banks.  Developments in Information and Communication Technology (ICT) have made apparent impacts in practically all areas of the World economy. The impact of innovation embrace especially in the financial area has changed the presence of Indian industry. For any sound economy a solid and hearty financial area remains as a solid column. For Inclusive financial development through banks in a country, ICT fills in as a solid facilitator.  The development in remote innovation builds the quantity of cell phone clients and offers speed to the fast improvement of internet business led with these gadgets. The new kind of internet business exchanges, directed through cell phones utilizing remote broadcast communications organization and other wired online business innovations, is called versatile trade, progressively known as portable online business or m- business. Portable business empowers another method of data trade and buys, and it presents a neglected area. 251 CU IDOL SELF LEARNING MATERIAL (SLM)

 The client is the focal point of a wide range of business whether it is assembling or exchanging the labour and products. The achievement of banking area is totally subject to how much clients are happy with the administrations given by banks. The expanded degree of familiarity with clients makes the odds of achievement of any association.  Lakhs of youth are entering the work market each year in this nation however can't discover reasonable business. Non-accessibility of sufficient work open doors in the coordinated and sloppy areas is one of the genuine difficulties the nation is confronting. In such a situation, the requirement for advancing independent work for the jobless rustic youth, especially those beneath the neediness line, and intermittent ability up degree to keep them side by side of most recent innovations, need not be exaggerated.  Financial education is the juncture of monetary, credit, and obligation the board information that is important to settle on monetarily dependable choices—decisions that are basic to our regular day to day existences. 12.8 KEYWORDS  Account Reconcilement: The way toward affirming that two separate records of exchanges in a record are equivalent.  Advanced Web Services: These administrations assist the administrators with making and enable exceptional inside sign on accreditations.  Cash Management Services (CMS) is a component to proficiently oversee income to diminish hazards, limit costs and augment benefits.  Disbursement: Amounts paid for labour and products that might be right now charge deductible.  Lock Boxes: It permits customers that get countless checks via the post office to set up their own crate in the mailing station. 12.9 LEARNING ACTIVITY 1. Some banks not offering zero balance a/c Find the reason. ___________________________________________________________________________ ______________________________________________________________________ _____ 2. Go to RBI website and find the consumer-oriented page and find the best features of it. ______________________________________________________________ _____________ ___________________________________________________________________ _______ 252 CU IDOL SELF LEARNING MATERIAL (SLM)

12.10 UNIT END QUESTIONS 253 A. Descriptive Questions Short Questions 1. What is the importance of customer awareness? 2. Describe the mobile based transactions. 3. What is RSETI? 4. What is the role of ICT in financial inclusion? 5. What is the financial literacy? Long Questions 1. Write the importance of financial literacy. 2. What are the benefits of customer awareness? 3. Explain role of ICT in financial inclusion. 4. Discuss mobile based transactions. 5. Explain RSETI. B. Multiple Choice Questions 1. What maximum amount of cheque can be used? a. Rs.100 crore b. No limit c. Rs.1 crore d. None of these 2. What is the Bank draft is issued by? a. Private Sector Banks b. Regional Rural Banks c. Public Sector Banks d. All of these 3. What is Self-helpgroup involves? a. Group of 5 to 20 people b. Regular saving habits c. Inter-lending within the group members CU IDOL SELF LEARNING MATERIAL (SLM)

d. All of these 4. Which payment of cheque can be stopped by? a. Beneficiary b. Nominee c. Drawer of cheque d. All of these 5. Where does account payee cheques can be paid? a. At cash counter of Bank b. At ATM c. By deposit in Bank account d. None of these Answers 1-b, 2-d, 3-d, 4-c, 5-c. 12.11 REFERENCES References  Auerbach, Robert, D. Finance Markets and Institutions. New York. Macmillan Publishing Co. Inc.  Bhole, M, K. Financial Markets and Institutions. New York. Macmillan Publishing Co. Inc.  Hajols, T, N. (2009). “Money and Banking”, Gopaljee Enterprises. Textbooks  Taxmann. (2010). “Practitioners’ Book On Trade Finance by Taxmann”. Taxmann Publication Pvt. Ltd.  Rajesh, R&Sivagnanansithi, T. (2009), “Banking Theory: Law and Practice”, Tata McGraw Hill Publishing Company Ltd.  Shekhar, K, C. (2009). “Banking Theory and Practice”, Vikas Publishing House Pvt. Ltd. Websites  http://www.rbi.org.in/ / 254 CU IDOL SELF LEARNING MATERIAL (SLM)

 http://www.cidap.gov.in//  http://moneyterms.co.uk/capital-adequacy/ 255 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 13 – ROLE OF TECHNOLOGY UPGRADATION STRUCTURE 13.0 Learning Objectives 13.1 Introduction 13.2 Role of Technology Up gradation 13.3 Technology Up gradation impact on Banks Trends in Technology Developments 13.4 Summary 13.5 Keywords 13.6 Learning Activity 13.7 Unit End Questions 13.8 References 13.0 LEARNING OBJECTIVES After studying this unit, you will be able to  Explain the role of technology up gradation.  Explore technology up gradation impact on banks trends in technology developments.  Describe the importance of technology in banking. 13.1 INTRODUCTION Banking industry is a spine of Indian monetary framework and it is tormented by many testing powers. One such power is transformation of data innovation. In the present time, innovation support is vital for the effective working of the financial area. Without IT and correspondence, we can't ponder the accomplishment of banking industry, it has developed the job of banking area in Indian economy. For making an effective financial framework, which can react satisfactorily to the necessities of developing economy, innovation has a vital task to carry out. In recent years, banks in India have put vigorously in the innovation, for example, Tele banking, portable banking, net banking, ATMs, Mastercard’s, charge cards, electronic instalment frameworks and information warehousing and information mining arrangements, to get enhancements nature of client administrations and the quick preparing of banking activity. Weighty interests in IT have been made by the banks in the assumption for development in their presentation. Yet, significant in the presentation relies on, contrasts in the sending, use and adequacy of IT. 256 CU IDOL SELF LEARNING MATERIAL (SLM)

Data innovation in financial area alludes to the utilization of modern data and correspondence advances along with software engineering to empower banks to offer better administrations to its clients in a protected, dependable and reasonable way and support upper hand over different banks. The meaning of innovation is extraordinarily felt in the monetary area taking into account the upper hand for banks bringing about the proficient client support. In the improvement of Indian Economy, Banking area assumes a vital and significant part. With the utilization of innovation there had been an increment in entrance, usefulness and proficiency. It has expanded the expense viability as well as has helped in making little worth exchanges suitable. Electronic conveyance channels, ATMs, assortment of cards, online banking, and versatile banking are the names of not many results of the interaction of robotization and computerization in Indian financial area. Data innovation has changed the manner in which individuals bank, the manner in which they contribute and the manner in which they acquire benefits. At the end of the day, IT has changed the substance of banking and banking oversight. More than most different businesses, monetary foundations depend on social event, handling, dissecting, and giving data to address the issues of clients. Given the significance of data in banking, it isn't shocking that banks were among the most punctual adopters of robotized data handling innovation. The financial area incorporates a great deal of central members, including retail and business banks, versatile (media transmission) network administrators, and monetary organizations. Data Technology (IT) has changed how business is directed, how people live, work and think. There is firm rivalry among banks and has likewise cleared way for some new and energizing financial items and administrations being offered these days for clients with such countless banks to look over. The financial area has cleared way for the utilization of IT in various manners to be specific the (PC), individual computerized gadgets (PDAs), tablets, cell phones, programmed teller machines (ATM) and independent machines with in the banks. All the above innovations named help the client and representatives to get to financial balance data they need right now. Portable Banking has been being used since the 90's, Banking data innovations utilized by the banks incorporate, versatile financial applications, contactless instalments, SMS banking, USSD, ATM, charge and Visa, versatile cash, phone banking, remote Point of Sale (POS) to give some examples. Portable Banking is characterized best as perhaps the most recent innovation that clients use in a hurry. Versatile Banking is likewise a help that is offered to clients by retail and business firms, cash loan specialists and specialist organizations for executing by utilizing a handheld gadget, for example, cell phone, tablet, wireless and individual coordinators. It is using the cell phone to do the accompanying: access the ledger, balance request, charge instalments, stores and moves. The record is gotten to utilizing an Internet association (which can either be Wi-Fi, versatile information or fibre optic link) or by portable organization by sending a SMS or calling. An individual doesn't need to genuinely go into the branch to make exchanges now a days. The record data can be gotten to from essentially anyplace on the planet and exchanges 257 CU IDOL SELF LEARNING MATERIAL (SLM)

accomplished too. Portable banking from an enormous perspective is a vital part of E- business. Data Technology which will be alluded to as IT inside the remainder of the record alludes to the utilization of PCs (which incorporate equipment, programming, organizing and the web) and correspondence contraption to guarantee the realities acquired can be utilized by people and organizations. Numerous organizations presently have IT offices which are arrangement to deal with the PCs, organizations, and other specialized spaces of their organizations. There have been immense changes and increases to IT utilized around the world. Information Warehouse: Data from heterogeneous sources is put away to produce basic data for choice emotionally supportive networks. The principle attributes of the information put away in a Data Warehouse are 1. It is subject-oriented 2. It is integrated, and there are no inconsistencies 3. The data in a data warehouse is non-volatile 4. It is time variant Data Warehouse can be set up even across different PC stages as long as the exchange subtleties are made accessible to the information distribution centre in normalized designs. Data Mining is a procedure to uncover the essential data stowed away in Data Warehouse(s). It helps in uncovering the examples that are basic to business and give a benefit through understanding and information on 1. Sound predictions of customer behaviour 2. Highly targeted market focus 3. Maximized operational effectiveness 4. Optimal return on Investment Establishment of Data Warehouse: Vasudevan Committee Data mining techniques can be applied in Predicting future trends based on information available Credit Risk Analysis. Analysing demographic information about customers Banks can use a corporate website for 1. Dissemination of information 2. Financial advice 3. To highlight non-banking activities 4. A node for commerce 5. Selling financial products 258 CU IDOL SELF LEARNING MATERIAL (SLM)

6. Gateway to the internet account services 13.2 ROLE OF TECHNOLOGY UPGRADATION With the globalization patterns world over it is hard for any country huge or little, created or creating, to stay disengaged based on what's going on around. For a nation like India, which is quite possibly the most encouraging developing business sectors, such segregation is almost unimaginable. All the more especially in the space of Information innovation, where India has unquestionably an edge over its rivals, staying ceaselessly or consistency of the world patterns is unsound. Monetary area overall and banking industry specifically is the biggest high-roller and recipient from data innovation. This undertakings to relate the worldwide patterns in it with the Indian financial industry. The last part incorporates perhaps all unfamiliar banks and recently settled Private area banks, which have completely electronic every one of the activities. With these varieties in the degree of data innovation in Indian banks, it is valuable to assess the patterns in Information innovation globally as additionally to see the similar situation with Indian banks.  Globalization: Information Technology has brought the world nearer and took into account data to be shared effectively, rapidly and adequately. Taking into account exchanges to be performed paying little mind to where an individual or business are found. Data Technology has separated topographical limits making the worldwide town so little.  Communication: Information Technology has made correspondence simpler, faster, less expensive and more effective. Individuals are currently ready to speak with one another from anyplace all throughout the planet. For instance through video conferencing, email, messaging, texting, person to person communication, radio in a hurry, TV in a hurry, voice calls and VoIP.  Cost Effectiveness and Operational Excellence: Automation of cycles for people and organizations implies our day by day lives have been changed. Our everyday lives have been made such a ton simpler and financially successful. Cost adequacy brings about benefits acknowledged and better compensation for workers. Making everyday lives simpler and less demanding working conditions. Exchanges are accomplished in the less measure of time contrasted with the prior day’s mechanization. Less blunders are utilized IT.  Bridging the Cultural Gap: People from various ethnicities and societies can impart among themselves and this considers trade of perspectives and suppositions which could better their lives, increment mindfulness and lessening bias.  Longer Working Hours: Business hours are reached out from the typical Monday to Friday and 8-5 working days. The business is for all intents and purposes open 24 259 CU IDOL SELF LEARNING MATERIAL (SLM)

hours and 7 days seven days. This applies to all organizations all throughout the planet. The drawn out hours considers deals to be directed from anyplace and whenever of day. Individuals are currently permitted to buy whenever and anyplace.  Creation of New and Exciting Jobs in its Field: Creation of new and intriguing positions inside the Information Technology field. For instance, would have software engineers, framework executives, framework experts, specialized experts of equipment and programming, web advancement, PC designing and organization.  Business Intelligence: IT in financial gives cutthroat lead among different adversaries. Vital and fundamental data acquired will be utilized in settling on essential business choices. Data achieved from contenders, people, business climate, inside activities and colleagues.  Convenience-Sometimes there simply isn't sufficient time in the day to complete all that you need to-do, that is the reason accommodation is probably the greatest benefit of internet banking. With business hours going from roughly 9am to 6pm, more limited hours on Saturday, and frequently shut on Sundays, creating an outing to the bank can undoubtedly turn into a troublesome errand for clients with a standard 9 – 5 plan for getting work done. Rather than going here and there around town, attempting to come to the bank before they close, just login on the web and complete your banking at whatever point it's helpful for you.  No lines-One of the things a great many people loathe about banks is holding up in line. It isn't unprecedented to wind up holding up in line at a bank, standing by to be helped. By banking on the web, you don't need to stand by in line to complete your preparing, passing on you with more opportunity to complete different things.  Availability-With internet banking, you can monitor your cash a lot simpler in light of the fact that your record data is accessible whenever on the web. To get your equilibrium, essentially login to your record. Abstain from getting stuck trusting that the bank will open once more, visiting an ATM, or calling a tedious client care number to get a similar data. You can even set aside cash, since certain ATMs and client care considers charge a little expense to get your record balance.  Innovation-If you are looking for a helpful and imaginative approach to deal with your individual budgets, consider banking on the web. Notwithstanding the benefits recorded above numerous online records incorporate highlights like online bill pay which assists you with setting aside time and cash when taking care of bills. Numerous online banks likewise offer the comfort of checking your record data from your PDA. Check your equilibrium by SMS or get cautions when cash is removed or a check goes through. From various perspectives web based banking gives a preferred encounter over an actual bank office on account of these new highlights. 260 CU IDOL SELF LEARNING MATERIAL (SLM)

 Robotic process automation: The volume of unstructured information that the banks need to measure is developing dramatically with the ascent of the advanced economy. These are banking exchange information, yet in addition other conduct information that could permit banks to improve and develop the client experience. With a blend of different innovations that empower psychological and mechanical interaction computerization investors would now be able to comprehend client activity and make a judgment at a higher speed, scale, and quality. Also, brilliant menial helpers today are taking care of exchanges, giving significant data, and aiding clients. Mechanical Process Automation is further developing the client experience by permitting bots to deal with monotonous assignments without human intercession. It likewise lessens blunders and empowers bank staff individuals to deal with more multifaceted inquiries and give better client care.  Data analytics: Today, achievement is accomplished by driving astute client commitment dependent on an information driven comprehension of the business. Innovation and digitization have changed the BFSI area by empowering them with continuous significant bits of knowledge to settle on educated choices, making upper hands and hoisting purchaser experience. This additionally permits banks to share possible items, upsells, strategically pitches, and key arranging with clients. With AI- upheld models, the capacity to change the financial encounters of clients is really outstanding.  API platforms: Today, through API stages, banks are working with FinTech’s to fabricate banking stacks that permit them to be a stage on which clients and outsider specialist co-ops can interface with convey adaptable and customized encounters to the end-client. Programming interface Banking Platform is intended to work through APIs that sit between the banks' backend execution and front-end encounters given by either the actual bank or outsider accomplices. This permits the banks to embrace totally new plans of action and use cases, for example, empowering compensation advances and investigation with new advances like blockchain for minimal price. APIs additionally help banks to future-evidence their frameworks.  Cyber security: Banking industry manages touchy and individual data, which has made it an appealing objective for cybercriminals. With the arrangement of innovation in the BFSI area, digital danger is likewise developing. The banks are becoming nimble in the manner they approach network protection. They are progressively executing progressed insightful, ongoing checking and biometrics and conduct examination programming to recognize dangers and prevent them from upsetting the frameworks. They are additionally using hostile to hacking apparatuses which give network-level security which searches for strange practices and potential cyber-attacks. 261 CU IDOL SELF LEARNING MATERIAL (SLM)

 Cloud computing: Another mechanical progression that is changing the financial business is distributed computing. Cloud is a significant apparatus of the assistance conveyance model and empowers banks to enter new business openings and access new conveyance channels. By utilizing cloud-based administrations, banks can diminish information stockpiling costs by saving money on capital and working consumption, while guaranteeing client information is ensured. Distributed computing likewise advances safe online instalments, computerized cash moves, wallets instalments, and so on. 13.3 TECHNOLOGY UPGRADATION IMPACT ON BANKS TRENDS IN TECHNOLOGY DEVELOPMENTS Financial establishments, as contrasted and different businesses, depend more on social affair, preparing, examining and giving data to address their clients' issues. This is the motivation behind why banks were quick to begin robotized data handling innovation. As per Roger W. Ferguson, Vice Chairman, the Federal Reserve Board, there are three reasons why monetary organizations have been and still are vigorously putting resources into innovation. In the first place, monetary establishments expect a decrease in working expenses through such efficiencies, for example, smoothing out administrative centre handling and the end of blunder inclined manual contribution of information. Second, foundations discover approaches to serve their present clients and draw in new clients by offering new items and administrations and simultaneously upgrading the comfort and benefit of existing items and administrations. Third, with new innovation, foundations have had the option to carry out refined danger – and informationmanagement framework and procedures. Another justification development is change, numerous banks and monetary foundations needed to battle with change, which isn't just quick yet in addition more intricate. Indeed, even the set up monetary establishments and organizations don't know who precisely their rivals are? Behind this lies the Internet. The Internet performs numerous capacities economically and deftly. Gary Reiner, boss data official of GE, one of the pioneers of the Internet, depicts how the organization set off to assemble its own electronic-closeout website. \"It was more affordable than we suspected\", he says. This change has gotten an emotional fall the expense of taking care of and communicating data and furthermore in the manner banks and different organizations arrive at their clients and the items and administrations that they offer. Associations hence must be run appropriately and workers must be all around prepared to stay aware of the speed of this new data innovation time. The presentation of the Internet has brought individuals nearer to one another however then again in the monetary administrations area it has brought disintermediation. Customer Relationship Management 262 CU IDOL SELF LEARNING MATERIAL (SLM)

In Banking Good Customer Service is the best brand representative for any bank. The whole business measure comprises of profoundly coordinated endeavours to find, make, stimulate and fulfil client 's needs. The advanced business has acknowledged it and is putting forth full scale attempts to become client driven 'across the globe. Henceforth, CRM isn't a once-for-all issue however a consistent interaction. It is the method of completing business covering every one of the parts of the cutting edge business. It is a basic methodology of managing clients by conveying the high level data innovation. CRM is the Information Technology face of the business cycle that means to set up suffering and commonly gainful associations with clients to drive client maintenance, worth and benefit. It is intended for a typical and equivalent great of the two partners organizations and their clients. It calls for catching appropriate information about the imminent and current clients in regard of their purchasing behaviour, shopping conduct and utilization propensities. It addresses the current way of thinking that the organizations ought to be client arranged. Online Banking Online banking is an electronic instalment framework that empowers clients of a monetary organization to go through with monetary exchanges on a site worked by the establishment, for example, a retail bank, virtual bank, credit association or building society. Web based banking is likewise alluded as Internet banking, e-banking, virtual banking and by different terms. To get to a monetary establishment's web based financial office, a client with Internet access would have to enrol with the organization for the assistance, and set up some secret word (under different names) for client confirmation. The secret word for internet banking is ordinarily not equivalent to for phone banking. Monetary organizations currently regularly assign clients numbers (likewise under different names), regardless of whether clients have demonstrated a goal to get to their internet banking office. Clients' numbers are ordinarily not equivalent to account numbers, on the grounds that various client records can be connected to the one client number. Mobile Banking RBI has allowed 89 banks to give versatile financial assistance in India as on October 17,2014. Cell phones as a conveyance channel for expanding banking administrations have off-late been achieving more noteworthy importance. The quick development in clients and more extensive inclusion of cell phone networks have made this channel a significant stage for stretching out financial administrations to clients. With the fast development in the quantity of cell phone supporters in India (around 261 million as toward the finish of March 2008 and developing at around 8 million every month), banks have been investigating the practicality of utilizing cell phones as an elective channel of conveyance of banking administrations. A few banks have begun offering data based administrations like equilibrium enquiry, stop instalment guidance of checks, exchanges enquiry, area of the closest ATM/branch and so forth 263 CU IDOL SELF LEARNING MATERIAL (SLM)

Advantages of Mobile Banking Mobile banking gives the accompanying benefits. 1. Always on 24 x 7 Accesses: Banks can offer types of assistance to the clients for 24 hours out of each day and 7 days of the week. It empowers the customers to be exchange prepared much as link access has worked with online PC access and diminished buyer dialup delays. 2. Advanced penetration of mobile networks: The 2G organizations as of now cover over 90% of the populace in the western world and this number is developing consistently. 3. Personalisation: Through Subscriber Identity Module (SIM) cards, versatile clients have a particular profile that empowers altered usefulness to straightforwardly mirror the manner in which they need to execute business over cell phones. Through the advantageous expansion of a multi-application, relationship card, versatile clients will likewise have an implicit stage for a large group of other application administrations, including security keys, virtual Visas and other altered instalment instruments. 4. WAP: Rapid advancement of worldwide conventions like Wireless Application Protocol (WAP) empowers the correspondence channel among PCs and cell phones. The WAP part basically gives the office of transforming information for show in remote handsets. 5. Faster data Processing Speed: Increase in transfer speed and information transmission speeds makes portable information administrations proficient and financially savvy in a constant climate. 6. Security: notwithstanding the previously mentioned keen card, a private key put away on the SIM card can ensure e-banking exchanges. Adequately, the cell phone can turn into a remote wallet to secure exclusive buy and monetary data. 7. Mobile payment: Mobile instalment implies executing an instalment exchange utilizing a remote gadget like cell phone or individual computerized aide. The cell phone turns into the electronic instalment’s gadget. Its versatility is its huge benefit. It empowers instalments to be executed paying little heed to place and time. Phone and web banking bear the cost of clients charge instalment and buying accommodations whenever. Disadvantages of Mobile Banking 1. Restricted plans: Though there were numerous designs to improve versatile financial contributions and administrations, as a general rule the drives were exceptionally confined. Most applications are educational, for example, bank adjusts or Mastercard or bank sums as opposed to intelligent administrations like purchasing or exchanging. 264 CU IDOL SELF LEARNING MATERIAL (SLM)

2. Technical problems: There are issues of specialized issues, security concerns and cost requirements. WAP end up being excessively sluggish and bulky to fulfil the client. Individuals ponder security. In any case, their interests are not sufficiently satisfied by purveyors of m-banking. 3. High charges: The main issue of m-banking is that expenses surpass apparent advantages. The charges for information sent are still too high to even think about creating versatile banking in a few nations. 4. Negative experience in European Countries: Experience about m-banking in European nations has not been positive. for example the British innovator in on-line banking chose to cut short its versatile contribution. It saw little eagerness for versatile banking among its clients. Indian Bills Payments System - GIRO Model for Payments In the Second Quarter Review of Monetary Policy 2012-13, Governor, Reserve Bank of India reported the setting up of a Committee to settle the modalities of executing an electronic GIRO instalment framework both electronic and check situated in India. Prior, the RBI, in its Payment Systems Vision in India 2012-15, had distinguished the requirement for fostering an electronic bill instalment framework dependent on a GIRO model for instalments towards protection premia, utility instalments, charges, school expenses, and so on Appropriately, a Committee under the chairmanship of Shri G. Padmanabhan, Executive Director, RBI was set up to contemplate the practicality of execution of an electronic GIRO instalment framework in the country. Automatic Teller Machine (ATM) Automatic Teller Machine is the most well-known gadget in India, which empowers the clients to pull out their cash 24 hours per day 7 days seven days. ATMs were acquainted with the Indian financial industry in the mid-1990s started by HSBC. Most unfamiliar banks and some private area players experienced a genuine impairment around then absence of a solid branch organization. ATM innovation was utilized as a way to part of the way beaten this impairment by connecting with the clients at a lower beginning and exchange expenses and offering bother free administrations. From that point forward, developments in ATM innovation have made some amazing progress and client responsiveness has additionally expanded complex. Advancement of ATM networks isn't just utilized for bringing down the exchange costs, yet additionally as a powerful advertising channel asset. It is a gadget that permits client who has an Automatic Teller Machine (ATM) card to perform routine financial exchanges without collaborating with a human teller. Notwithstanding cash withdrawal, Automatic Teller Machines (ATMs) can be utilized for instalment of service charges, reserves move between accounts, store of registers and money with accounts, balance enquiry and so on. 265 CU IDOL SELF LEARNING MATERIAL (SLM)

Advantages of ATM – There are a few benefits of ATM which are examined beneath. 1. Quick and brief help is conceivable with less human mistakes. 2. It is gainful for voyagers. 3. It gives 24 hrs administrations with no staff and diminishes the responsibility on bank staff. 4. Withdraw money whenever or in critical without the assistance of bank. 5. It guarantees protection to the clients. 6. The withdrawal of rupees is quicker than bank, no need of standing long queues. 7. Maintenance expense is less as no bank staff is associated with exchange. 8. It likewise gives receipt to subtleties of withdrawal of cash and equilibrium in account. Disadvantages of ATM – There are a few drawbacks of ATM are as underneath. 1. It can't offer types of assistance in provincial locale in our nation though banks are accessible in the towns. 2. Customers don't have legitimate information on its activity so feel wonder whether or not to utilize it. 3. If ATM card is lost, no withdrawal of rupees. There is probability of abusing and hack the ATM card. 4. If administer blunder in ATM machine, not got rupees yet record will be charged. 5. Personal dash of client’s worker connection is absent. 6. Due to spillage of PIN, extortion can happen without any problem. 7. Initial expense of equipment, programming, and establishment site is exceptionally high. 8. Limitation of withdrawal of cash SIM Application-tool stash: The SIM Application Toolkit is expressed as a standard SIM card with an intelligent menu modified into it, considering the client to cooperate. The collaboration is between the client and the organization, the trade is finished by the client being shown an intelligent menu and contributing of the data for the application to then show. The portable organization administrators can send refreshes for the clients to their SIM cards over the organization or to issue totally new SIM cards. The test being who will possessed all the necessary qualities, the client or the organization administrator? The greatest benefit of executing the SIM Based Applications for versatile organization specialist co-ops and monetary establishments, it ensures the organizations application is on the SIM and this hence gives upper hand to the bank. 266 CU IDOL SELF LEARNING MATERIAL (SLM)

Near to Sound Data Transfer (NSDT): It is a quick, secure and advantageous contactless instalment innovation utilized in versatile financial that uses any cell phone. NSDT utilizes an onetime sound secret key that is given each time a client wishes to make instalments to check an exchange instead of utilizing Secure SMS or USSD advancements. NSDT empowers secure exchanges on the Tag pay stage. NSDT exchanges are executed through a client's cell and a seller or administrators' acknowledgment gadget for instalment. A client stores cash through an enlisted specialist and the cash goes into a virtual wallet. NSDT focuses on all exchanges are speed of Communication and information pressure, security and cryptography, blunder identification and remedy and in conclusion solid improvement and execution. In this way, NSDT makes powerful and phenomenal exchanges, and can even be utilized in extremely uproarious conditions. RFID Technology: A bank card is inserted with a chip made for instalment. Instalment is made is just made by putting the card before a RFID peruse, and the instalment is handled consequently. Phone banking or Interactive voice response (IVR): A client needs to enlist for the phone banking administration through the bank. Phone Banking is an Information Technology (IT) that permits a client to connect with the framework once they ring a devoted nu mber given by the bank. A client interfaces by choosing different choices from a voice brief framework or can likewise address select alternatives. Wireless Application Protocol (WAP): It is an innovation used in versatile financial where the client gets to the bank site by means of the Internet utilizing a program on the cell phone. A client can get to their ledger data utilizing the versatile which goes about as a PC. The client can obtain entrance without downloading any product. Unstructured Supplementary Service Data (USSD): Is a SMS administration with a menu and planned meeting. It is a standard that is used in all handset models. The client needs to browse the rundown of choices in the menu to proceed instead of utilizing sentences to answer. A significant benefit of USSD: the client answers rapidly by picking the pertinent choices from the menu. USSD takes into account correspondence between the client, versatile organization and bank. To utilize the USSD administration the clients SIM card is preinstalled with the orders needed for the help. A client utilizes the committed numbers for the USSD administration given by the bank or the portable organization administrator. The client begins the solicitation by dialling the USSD administration number, the portable organization administrator returns a menu. The client enters a decision from the accessible alternatives. Contactless Payments utilizing Near Field Technology (NFC): It is a two-way radio waves correspondence, just as portable contactless and remote type of instalment utilizing a keen cell phone which run viable programming and are likewise contacted together inside nearness of one another. NFC is a short-range, high-recurrence innovation, which permits a trade of data between gadgets inside 10 cm. NFC was based upon the RFID innovation. Permitting 267 CU IDOL SELF LEARNING MATERIAL (SLM)

remote correspondence and information trade between gadgets. A gadget is either dynamic or detached modes. Encryption is utilized to get touchy information, antivirus and telephone lock should be utilized to get the telephone in the event that it's lost or taken. As expressed in the NFC site NFC innovation is for the most part well known in Europe, America and Asia. NFC point is to keep the lines short, quicker occasions for exchanges to be handled, less cards to heft around as one simply needs to make sure to convey their cell phone for instalment. Mobile Money: Also alluded to as portable wallet, portable instalment and portable cash move. Versatile cash administration is utilized around the world, principally utilized in Africa for those with or without financial balances. The help is given by the portable organization administrators who are in association with the business banks. The versatile cash records can likewise be connected with a client's financial balance. The versatile cash administration is another method of banking cash, without the issue of opening a ledger. The cash in the virtual \"wallet\" can be utilized to pay for anything for instance purchasing of portable credit, instalment of bills, labour and products delivered. A PIN number is utilized to confirm the exchanges made. The assistance is at an expense for both the sender and recipient. Portable Money clients have a virtual wallet where there reserves are kept, they store, make instalments and pull out from reserves. Security in Banking Security of a client's monetary data is vital, without which web based banking couldn't work. Monetary foundations have set up different security cycles to diminish the danger of unapproved online admittance to a client's records, yet there is no consistency to the different methodologies embraced. The utilization of a safe site has gotten generally embraced. However single secret key verification is as yet being used, it without anyone else isn't viewed as secure enough for web based banking in certain nations. Fundamentally, there are two distinct security techniques being used for internet banking. The PIN/TAN framework where the PIN addresses a secret phrase, utilized for the login and TANs addressing one-time passwords to verify exchanges. Present Security Systems for Online Banking  User id and transaction password: Firstly, New York presents web based financial utilizing client id and text secret phrase in the mid-1980s. To get to internet banking offices, a client needs to enlist him-self with a novel id and secret phrase for client confirmation. The new User id should be 6 to 19 characters and the secret word should be 8 to 17 characters and should contain no less than 2 alpha and 2 numeric characters. Client can set security information to email address, Security Queries, Authentication Pass Phrase and Computer Registration. Presently, client can access and take full advantages of web banking administrations. 268 CU IDOL SELF LEARNING MATERIAL (SLM)

 OTP: One-Time Password (OTP) Service Using Mobile Phone Applied to Personal Internet Banking was carried out first time in Japan, 2007. This is a confirmation administration that utilizes an OTP notwithstanding the ordinary ID and secret word for individual distinguishing proof. Client can utilize this OTP for better security during on the web exchange by downloading uncommon secret word age programming to their cell phone. Client can perform validation by entering an OTP showed by the cell phone application notwithstanding their typical ID and secret word. The one-time passwords are explicit to every client, and another secret word is produced each moment. Regardless of whether the secret word is acquired by an outsider deceitfully, it can't be utilized external its lifetime.  QRP code: QRP that is Quick Response Protocol, is a safe verification framework that utilizes a two-factor validation by joining a secret key and a camera prepared cell phone, where cell phone is going about as a confirmation token. It is extremely secure and furthermore exceptionally simple to use for scrambled information. It is extremely secure convention for use on untrusted PCs.  Biometric: Biometric is explicitly utilized for secure ATM exchange. In such an exchange, the utilization of a biometric component like iris/retinal output, hand calculation or finger impression sweep can enormously work on generally security. Clients should simply enlist their biometric data at a bank 's branch. Then, at that point they will actually want to pull out cash from ATM simply by giving their biometric secret phrase and giving their date of birth and Pin number. At present there are 80,000 biometric empowered ATMs in Japan utilized by in excess of 15 million clients.  OTP and QR code: To wipe out danger of phishing and to affirm client personality the framework with the blend of OTP and QR code was created. QR-code can be filtered by client cell phone which conquer the shortcoming of customary secret key based framework. This further develops security by utilizing one-time secret key (OTP) which covers up inside QR code.  Grid authority card: Grid authority Card is a card that aides in forestalling the extortion at the underlying stage itself with the end goal that the misrepresentation couldn't participate. In this framework, the client presents his/her Visa qualifications alongside the individual Grid Characters on the matrix card related with the Visa. Matrix card contains the letter sets related with the numeric numbers imprinted on it. These matrix codes are created haphazardly by the UI application through which the client is associating with the Payment Gateway by means of secure web association. Without the Grid Card, nobody can do the online instalments if there should be an occurrence of Visa robbery or lost. 269 CU IDOL SELF LEARNING MATERIAL (SLM)

 E-Token: E-Secure Token gives an extra security include when signing on to Internet Banking. The safe Token gives a ―One-Time-PIN‖ (OTP), which ought to be utilized to get to the Internet Banking destinations, along with username and secret key. Each OTP is just legitimate for one meeting; in this way, the E-Secure Token ought to be utilized to create an OTP with each login. To get login OTP client need to turn on his E-Secure Token utilizing the on/Off Button. Then, at that point he needs to enter his 4 digit secret pin. Client 's E-Secure Token LCD screen message will then, at that point show his login OTP.  Security question: Based on research for multifaceted validation (MFA) and misrepresentation hazard relief, the confirmation interaction was fortified for Internet Banking clients by decreasing the quantity of freedoms to effectively address security challenge questions. Already, clients chose three security challenge inquiries to be introduced during MFA, and had up to five possibilities to accurately respond to those inquiries. In particular, a client was introduced the principal security challenge question and had two freedoms to answer appropriately. In the event that the client didn't give the right reaction, the subsequent security challenge question was introduced and the client again had two freedoms to give the right answer. On the off chance that the client was as yet incapable to offer a right reaction, the third security challenge question was introduced and the client had a single chance to react effectively. Around then, if the client was inadequate to answer effectively, the client was locked out of Internet Banking until client assistance opened or reset the MFA setting for the client. 13.4 SUMMARY  Information innovation has changed the manner in which individuals bank, the manner in which they contribute and the manner in which they acquire benefits. As such, IT has changed the substance of banking and banking oversight. More than most different businesses, monetary organizations depend on social affair, preparing, breaking down, and giving data to address the issues of clients. Given the significance of data in banking, it isn't shocking that banks were among the soonest adopters of robotized data handling innovation.  With the globalization patterns world over it is hard for any country huge or little, created or creating, to stay detached based on what's going on around. For a nation like India, which is perhaps the most encouraging developing business sectors, such disengagement is almost unimaginable. All the more especially in the space of Information innovation, where India has certainly an edge over its rivals, staying endlessly or consistency of the world patterns is unsound. Monetary area overall and banking industry specifically is the biggest high-roller and recipient from data 270 CU IDOL SELF LEARNING MATERIAL (SLM)

innovation. This undertakings to relate the worldwide patterns in it with the Indian financial industry.  Financial organizations, as contrasted and different ventures, depend more on social event, preparing, examining and giving data to address their clients' issues. This is the motivation behind why banks were quick to begin mechanized data handling innovation. As per Roger W. Ferguson, Vice Chairman, the Federal Reserve Board, there are three reasons why monetary organizations have been and still are intensely putting resources into innovation. To start with, monetary establishments expect a decrease in working expenses through such efficiencies, for example, smoothing out administrative centre handling and the end of blunder inclined manual contribution of information.  In Banking good customer Service is the best brand minister for any bank. The whole business measure comprises of profoundly incorporated endeavours to find, make, stimulate and fulfil client 's needs. The advanced business has acknowledged it and is putting forth full scale attempts to become client driven 'across the globe. Henceforth, CRM isn't a once-for-all issue however a ceaseless interaction. It is the method of doing business covering every one of the parts of the cutting edge business. It is an essential methodology of managing clients by conveying the high level data innovation. CRM is the Information Technology face of the business cycle that means to set up suffering and commonly gainful associations with clients to drive client maintenance, worth and benefit.  Online banking is an electronic instalment framework that empowers clients of a monetary establishment to go through with monetary exchanges on a site worked by the organization, for example, a retail bank, virtual bank, credit association or building society. Web based banking is additionally alluded as Internet banking, e- banking, virtual banking and by different terms. To get to a monetary foundation's web based financial office, a client with Internet access would have to enrol with the organization for the help, and set up some secret phrase (under different names) for client confirmation.  RBI has allowed 89 banks to give portable financial help in India as on October 17,2014. Cell phones as a conveyance channel for broadening banking administrations have off-late been achieving more noteworthy importance. The quick development in clients and more extensive inclusion of cell phone networks have made this channel a significant stage for stretching out financial administrations to clients. With the fast development in the quantity of cell phone supporters in India (around 261 million as toward the finish of March 2008 and developing at around 8 million per month), banks have been investigating the plausibility of utilizing cell phones as an elective channel of conveyance of banking administrations. 271 CU IDOL SELF LEARNING MATERIAL (SLM)

13.5 KEYWORDS  Cheque:A written order directing a bank to pay money.  Drawee: The party directed to pay the amount of a draft or check.  Drawer: The party who draws the draft upon another party for payment.  Endorsement: The act of signing a cheque for the purpose of transferring it to somebody else.  Payee: The person to whom a cheque, money order, etc., is made out. 13.6 LEARNING ACTIVITY 1. List down the important codes in cheque. ___________________________________________________________________________ ___________________________________________________________________ 2. How would you use the credit card or debit card for online payment? Make it practically. ___________________________________________________________________________ ______________________________________________________________________ 13.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Why mobile banking is important? 2. Discuss online banking 3. What is customer relationship management? 4. Why are cyber security? 5. What is role of technology upgradation? Long Questions 1. Explain the role of technology upgradation? 2. Discuss technology upgradation impact on banks trends in technology developments. 3. What are the advantages and dis-advantages of mobile banking? 4. What are the advantages and disadvantages of ATM? 272 CU IDOL SELF LEARNING MATERIAL (SLM)

5. Discuss the present security systems for online banking. 273 B. Multiple Choice Questions 1. What does recurring deposits mean? a. A fixed sum is deposited every month b. Period of deposit is a fixed tenure c. Interest is paid at FDR rate d. All of these 2. When does while making nomination, signature of nominee is required on? a. Account Opening Form b. Nomination form c. Affidavit d. None of these 3. What does interest on savings bank deposits is paid? a. Every month b. Quarterly c. Half yearly d. Yearly 4. What Mutilated notes? a. Should be burnt away b. Should be thrown away c. Can be exchanged at Bank d. None of these 5. When does ATM can be used for? a. Cash withdrawal b. Account enquiry c. Statement of account d. All of these Answers 1-d. 2-d. 3-c. 4-c. 5- d. CU IDOL SELF LEARNING MATERIAL (SLM)

13.8 REFERENCES References  Blinder, A, S. (1998). Central Banking in Theory and Practice, Cambridge, MIT Press.  Seshadri, R, K. (1989). The art of Central Banking and Essays, Bombay Bankers Training College RBI.  Shekhar, K, C. (2009). “Banking Theory and Practice”, Vikas Publishing House Pvt. Ltd. Textbooks  Rajesh, R&Sivagnanansithi, T. (2009). “Banking Theory: Law and Practice”. Tata McGraw Hill Publishing Company Ltd.  Decock, M, H. (1997). Central Banking, Furth edition. New Delhi, UBSPO.  Nigam, B, M. (1997). Banking in India in Eighties, New Delhi UBSPO. Websites  https://www.sebi.gov.in/  http://www.preservearticles.com/2012033129405/15-main-functions-of-commercial- banks.html  http://chestofbooks.com/finance/banking/Banking-Credits-And-Finance/ 274 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 14 – USES OF TECHNOLOGY UPGRADATION STRUCTURE 14.0 Learning Objectives 14.1 Introduction 14.2 Role & Uses of Technology Up Gradation 14.3 Global Trends 14.4 Impact of IT on Banks 14.5 Summary 14.6 Keywords 14.7 Learning Activity 14.8 Unit End Questions 14.9 References 14.0 LEARNING OBJECTIVES After studying this unit, you will be able to  Explain the role &uses of technology up gradation.  Explain global trends.  Explain impact of IT on banks. 14.1 INTRODUCTION With the globalization patterns world over it is hard for any country enormous or little, created or creating, to stay separated based on what's going on around. For a nation like India, which is perhaps the most encouraging developing business sectors, such disengagement is almost inconceivable. All the more especially in the space of Information innovation, where India has certainly an edge over its rivals, staying ceaselessly or consistency of the world patterns is illogical. Monetary area overall and banking industry specifically is the biggest high-roller and recipient from data innovation. This undertakings to relate the worldwide patterns in it with the Indian financial industry. The last parcel incorporates conceivably all unfamiliar banks and recently settled Private area banks, which have completely automated every one of the activities. With these varieties in the degree of data innovation in Indian banks, it is valuable to assess the patterns in Information innovation globally as additionally to see the similar situation with Indian banks. The current article begins with the banks 275 CU IDOL SELF LEARNING MATERIAL (SLM)

discernment when they get into IT up degree. Every one of the patterns in IT area are then examined to see their pertinence to the situation with Indian banks. Data innovation alludes to the obtaining, preparing, stockpiling and dispersal of a wide range of data utilizing PC innovation and media transmission frameworks. Innovation incorporates all maters worried about the facilitation of software engineering and innovation and with the plan, improvement, establishment and execution of data framework and applications. Data innovation engineering is an incorporated system for gaining and developing IT to accomplish vital objectives. It has both sensible and specialized segments. PC equipment and programming, voice, information, organization, satellite, different media communications innovations, sight and sound are application advancement devices. These advances are utilized for the information, stockpiling, handling and correspondence of data. Data innovation incorporates auxiliary gear, programming, firmware and comparable methodology, administrations and so forth Current high throughput advances are giving tremendous measures of the groupings, articulations and utilitarian information for qualities and protein. Perhaps the most troublesome difficulties is transforming this colossal pool of data into valuable logical knowledge and novel remedial items. The polarity in the development possibilities of banks from created markets versus those from the developing business sectors has likewise been featured by the emergency. Driven by light monetary possibilities, the financial business in the developing business sectors stayed beneficial in any event, during the most exceedingly awful period of the emergency. This differences with the presentation of banks from created markets which enlisted gigantic misfortunes during a similar period. Indeed, even in coming years, banks from the developing business sectors are relied upon to drive the development of the worldwide financial industry. The business has likewise entered a time of upgraded guideline. More rigid capital ampleness and hazard the board principles are currently being forced upon banks, alongside a relating expanded strain on their customary plans of action and working edges. Looking forward, certain key needs have arisen for the financial business, noticeable among them are: rebuilding of client certainty; resolving issues like low effectiveness of existing channels; maturing innovation; high working expenses and the presence of complex cycles. Innovation, including the improvement of customer driven arrangements, is progressively being viewed as a vital aspect for meeting these needs. Thus, certain significant patterns are seen arising in the financial business. Far off financial arrangements are progressively being adjusted and utilized as instruments for giving more prominent accommodation to clients just as driving functional effectiveness. 14.2 ROLE & USES OF TECHNOLOGY UP GRADATION Role of Technology up Gradation 276 CU IDOL SELF LEARNING MATERIAL (SLM)

Technology has consistently assumed on significant part in the working of banking organizations and the administrations given by them. Data Technology empowers refined item improvement, better market framework, execution of solid procedures for control of dangers and assists the monetary middle people with arriving at topographically far off and broadened markets. Web has altogether affected conveyance channels of the banks. Web has arisen as a significant vehicle for conveyance of banking items and administrations. Banking climate has become exceptionally serious today. 1. Meeting internal requirement: The necessities of the banks are diverse exclusively relying on their temperament and volume of business; centre around a specific portion, spread of branches and a like. Numerous a period's banks do have the necessary data however it is dissipated. The working units rarely know the reason for social affair the data by their higher specialists. 2. Effective in data handling: As expressed prior the banks have the majority of the required information yet are disseminated. Further the expense of assortment of information and putting something similar to utilize is restrictively high. The precision and practicality of information age turns into the causalities all the while. Best of the goals on computerization are wished away on the grounds that there is nonvisible decrease in cost/endeavours/time needed for the necessary information gathering. 3. Extending customer services: Addressing to rising clients' assumptions is huge especially behind the scenes of expanded contest. In the event that bank A can't offer the necessary assistance at a cutthroat cost and in an exact way with speed. 3 www.ssijmar.in There is consistently a bank IT at its nearby holding back to enlist the client. Attention to clients about the accessibility of administrations and their valuing as likewise accessible alternatives have brought into sharp centre the issue of consumer loyalty. 4. Creative support for new product development: It has gotten vital for the banks to vitalize the cycle of item improvement. Promoting functionaries needs a ton of data from the external sources as well as from inside the banks. Banks are hoping to retail section as the future commercial centres for deals endeavours. Having undeniable data of existing client is the key for this reason. The rises of information necessity and a suitable design to help the equivalent are critical issues to be taken care of in such manner. 5. End-client development of the non-specialized staff: Banking being a help industry, it is the staffs at counters that convey the items. In Indian situation, virtual banking is probably going to have a couple of more years to build up. The reliance on counter staff is unavoidable. The staffs are huge in number and the larger part is non- 277 CU IDOL SELF LEARNING MATERIAL (SLM)

specialized. The consumer loyalty levels at the counter decide a definitive advantage of IT hostile. Giving due thought to this viewpoint in picking engineering in important. Uses of Technology Up-Gradation 1. Increase in efficiency: Efficient and fast assistance to client can be furnished with the assistance of present day advances. 2. Handling of information: Creation of cutting-edge observing and data framework and reinforcing inside control and housekeeping and detailing capacities are given. Arranging of data turns out to be simple. 3. Cost reduction: There is decrease in cost including floor space on account of the utilization of current innovation. 4. Accuracy: The getting free from checks, pass book sections, between branch and between bank compromise and such different capacities would now be able to be done rapidly, effectively and intelligibly with current innovation. 5. Customer service: With web office, the clients need not go to the bank office. All financial exchanges and refreshing of records should be possible while at home or on the way. Systems administration implies sharing of data, giving messages and being in up close and personal contact in any event, when separated. It is the gathering without moving. 6. Easy communication: Internet associates a large number of PCs which can work 24 hours per day consistently. There is not any more the oppression of working hours. The matter of saves money with clients, head office, different banks, branches is as a rule completely modernized in western nations and India has likewise to move toward that path to support in global rivalry. 14.3 GLOBAL TRENDS The undeniably fast development of innovation out of administrative centres and under the control of the vast majority of the total populace has significant impacts. Despite the fact that the pandemic is broadly credited with speeding up computerized take-up, the full movement is truly starting to move from direct to dramatic. The Financial Brand talked with Ramamurthy about the main tech-related advancements banks and credit associations face. The advisor distinguished a few key regions, assembled under four expansive topics. Some of Global Trends 1. Outsourcing: Outsourcing is perhaps the most discussed as likewise a questionable issue. The drivers for getting in to revaluating are numerous to remember holes for IT 278 CU IDOL SELF LEARNING MATERIAL (SLM)

assumptions and the truth, demystification of computerization overall and IT in specifics, pattern towards zeroing in on centre abilities, expanded authenticity of rethinking and goal of escaping stresses and kind of up degree of equipment and programming renditions. Not that the training is new as prior it was declined to as 'delaying' or 'administration authority'. What is required is the reasonable of re- appropriating, next to a positive intend to be more serious subsequent to re- appropriating. It is important to have governing rules to screen seller execution. Cost perspectives merit thought, as additionally a choice with respect to the interaction to be rethought will be importance. Leave course and asset on the measure of disappointment in the wake of rethinking are the other issue to be looked onto. Despite these dangers, rethinking has come to say. 2. Integration: One of the IT pattern is moving from chain of importance to group approach. The intention is to see an option in contrast to retooling, to respond rapidly and to foster capacities instead of abusing them. Such mix is vital in order to address to common circumstances. i. Functions requiring information and not getting from others. ii. Sending information to the individuals who would prefer not to need them. iii. Global information exist yet don't head out to required business capacities. Indian banks appear to pursue this direction through the true update as depicted before. Rather than in an upward direction isolated pyramid type authoritative set-ups, banks are currently being to have separate gathering like money, global buyer banking, modern/business credit and so forth. 3. From solo to partnership: With its advancement, two things are occurring at the same time. The work power as a level of complete staff is going down and spending on IT as level of absolute spending is going up. The types of association can incorporate restricting by predominant assistance, convenience in help sharing organization, equivalent organization and circumstances, where endurance is compromised. Now and again, the organization becomes important to escape regions where there is no upper hand. Low improvement cost or more extensive geological inclusion is the perspectives that make such organization. Examples are not continuous, where joint endeavours have been found with the IT merchants. 4. Distinctive edge: It is constantly said that numerous utilizations however a couple of utilize IT. Truly, the accentuation is on utilizing IT for enormous volumes like payrolls, adjusting the books, the combination and so on That acknowledgment on having IT as matter of upper hand has come about of late. It is perceived that client care is definitely not something simple to give, yet IT is utilized as a mean. It gives esteem augmentations and eradicates hindrances for contenders to enter. Banks 279 CU IDOL SELF LEARNING MATERIAL (SLM)

comprehend that the expense of developing the new client is 5 to multiple times of holding the bygone one. Client typically switches banks because of helpless assistance. The enthusiasm for these realities has constrained the banks world over to view IT as an instrument to make particular edge over contenders. The private area banks that were set up in 1990's as a piece of money area changes made great of IT to have an edge over the others. The unfamiliar banks working in India have additionally had the option to showcase IT prevalence as an unmistakable edge. The public area banks are still to utilize IT in such manner, in spite of the fact that they are honoured with tremendous data base the whole way across the country. While steps are mooted toward this path by driving public area banks, more hostile stances are fundamental. 5. IT as profit centre: In the undeveloped stages, IT was viewed a way to dispose of high preparing cost and time and to change over the manual activity with high volume/low intricacy in two mechanical ones. With the developmental the interaction, it was viewed as the best method for creating, MIS. A similar methodology gave the situation with DSS to IT. From the beginning, IT has been perceived as the help work in Indian Banks. Nonetheless, the recent fad that is arising is thinking about IT as a benefit place. The money saving advantage investigation of having IT or in any case in one section. However, having IT set up to produce pay for the association is the fresh start. Landing positions from outside the bank for preparing information and so forth are the latest things. The re-appropriating done by others is the business, take into account by these associations the pattern of this sort isn't merited in Indian circumstance especially banks. The Banks have had the option to simply oversee what is to consider as their obligation as IT, inside the individual banks. 6. Prospering in down market: The pattern recommends that when there is a down turn in the commercial centre, Pro-dynamic partnerships take the advantage of accessible unutilized assets to update and return to innovation issues. This is viewed as the ideal opportunity to build up the R and D place for IT. Leading to downsizing: The IT drive is making the association lean and level. For IT functionaries scaling back implies moving figuring power from centralized server to the PC and workstations. Scaling back is a normal issue confronted with related issues. Nonattendance of top administration responsibility, absence of comprehension of the common IT foundation, doing excessively and excessively quick and undertaking the activity without a system for controlling the scaling down tasks are essentially the circumstances that make difficulties in cutting back. Regardless the pattern of scaling back is a lot of existent in the IT climate.Getting competitive intelligence: IT is presently seen as an asset for social affair and dispersal of chief data framework (EIS). The design is to limit that the assaulting and zeroing in on the importance, precision and practicality of the data especially about the contenders such data improves follow up and tracks early 280 CU IDOL SELF LEARNING MATERIAL (SLM)

admonition on contender move and furthermore client assumptions. All things considered separately; they need to rival other financial industry members as additionally with different parts in the monetary area. The opposition from for protection and government notes and saving, shared assets and so forth is continually approaching especially in view of specialist tax cuts. Assortment of required data and utilizing something very similar for business object is compelled by the accessibility of the data, its volume and variety. As such it might require some investment for this pattern to be apparent in Indian financial situation.Artificial intelligence (AI): Although banking and monetary administrations will in general be slower to receive new advances, a PricewaterhouseCooper study affirms most of monetary administrations leaders are putting resources into man-made consciousness (AI)— 52% of chiefs affirmed they are making \"generous\" interests in AI while 72% trust it will be a business advantage. One thing that will probably cause the rest to trust in computerized reasoning's potential for the business are the expense investment funds that are required to be $447 billion by 2023.Things being what they are, how do monetary establishments utilize man-made consciousness? The most noticeable way the financial business utilizes man-made brainpower (AI) is for client assistance from chatbots and robots. A considerable lot of the biggest monetary establishments, like Bank of America and JPMorgan Chase, use AI to smooth out client care. Another client confronting way AI is sent is to work with versatile financial that permits every minute of every day access for purchasers to direct financial tasks. Artificial intelligence is likewise instrumental in the manner monetary organizations improve security and forestall and identify extortion. The innovation assists monetary establishments with hazard the board and loaning choices and is central in making other innovation, for example, large information examination, mechanical interaction mechanization, and voice interfaces work. Block chain: Blockchain innovation, first utilized in the digital currency Bitcoin, is a circulated data set that can monitor exchanges in a certain and perpetual manner. The Harvard Business Review predicts that blockchain will upset banks the manner in which the web disturbed media. Blockchains are straightforward, profoundly secure, and are generally modest to work. As more monetary organizations acknowledge how blockchain can further develop security, set aside cash, and further develop consumer loyalty, more will embrace the innovation. Blockchain can uphold banking severally. Bitcoin showed how it tends to be utilized for instalments, however it can likewise be ground-breaking in the manner our capital business sectors work by tokenizing conventional bonds, stocks, and different resources and putting them on open blockchains. Blockchains would eliminate the watchmen and outsiders in the advances and credit framework while likewise making it safer to acquire cash and bringing down loan costs. Blockchain could likewise dispense with manual information compromise for bank records. The manner in which data and cash are traded today will be adjusted by brilliant agreements that work from blockchain innovation. 281 CU IDOL SELF LEARNING MATERIAL (SLM)

Big Data: One of the approaches to decide an innovation's impact on an industry is to take a gander at how an industry is putting resources into it. The financial area is at present one of the top financial backers by industry in enormous information and business investigation arrangements as indicated by the IDC Semi-yearly Big Data and Analytics Spending Guide. The measure of information created by the monetary business—Mastercard exchanges, ATM withdrawals, FICO assessments—is stunning. What's more, having the option to put that information to use to settle on business choices and interaction it adequately to gather significant experiences will be basic to remaining cutthroat later on. Monetary organizations can utilize huge information to become familiar with clients and have the option to settle on business choices progressively including finding out about a client's ways of managing money, deals the board, for example, dividing clients to advance advertising just as item strategically pitching, extortion the executives, hazard evaluation, and revealing, and client criticism investigation. Not exclusively does huge information investigation assist with recognizing market patterns, however it additionally assists monetary organizations with smoothing out inner cycles and diminish hazard. Robotic Process Automation (RPA): Since mechanical cycle robotization can save work, functional expenses, and limit blunders, numerous monetary establishments are beginning to use this innovation to make the most ideal client experience for clients and to stay cutthroat. In RPA, programming is modified to empower robots and remote helpers to finish dreary and work serious jobs effectively and rapidly without human mediation. RPA, through client care chatbots assists saves money with managing the low-need inquiries from clients, for example, record and instalment inquiries to let loose human client specialists to manage the high-need concerns. In insurance agencies, RPA is utilized to mechanize portions of the cases dealing with measures. Another way RPA impacts monetary establishments is to assist with guaranteeing consistence in the profoundly managed industry. Today, on account of RPA, clients can get a choice on their charge card application inside a couple of hours however in some cases very quickly after they present the data. It's additionally streamlining contract handling. Cloud Computing: Cloud figuring is innovation for putting away information and conveying registering administrations, including workers, data sets, organizing, programming, examination and more over the web. At the point when an individual or a business needs to utilize the cloud, they will pay a cloud supplier dependent on use with pay-more only as costs arise evaluating. Distributed computing makes all day, every day client support from anyplace conceivable. Also, distributed computing upgrades the deftness of monetary organizations and makes increasing administrations simpler and speedier. Since they just compensation for administrations they use, distributed computing can help monetary foundations control costs. Distributed computing likewise empowers secure online instalments, computerized wallets, and online exchanges. 282 CU IDOL SELF LEARNING MATERIAL (SLM)

Voice Interfaces: Chatbot arrangements, empowered by refined man-made reasoning, are being conveyed by monetary foundations to decrease expenses and live up to clients' desires with respect to speedy reaction and viable issue goal. Customary types of two-way correspondence like email, telephone, and text can be supplanted with a chatbot. By 2020, chatbots are relied upon to deal with no under 85% of client assistance communications, as indicated by Gartner. Cyber Security and Resilience: In an industry managing delicate individual and monetary data, and that is an alluring objective of cybercriminals, security is fundamental for monetary foundations. It would be a smart thought for monetary establishments to accept there will be a security break and plan for how to limit the harm, in light of the fact that forestalling all cyberattacks is almost unthinkable because of the different ways shoppers cooperate with their cash and the various weaknesses that exist paying little mind to how long and energy is advanced to forestall cyberattacks. 14.4 IMPACT OF IT ON BANKS Banking industry is a spine of Indian monetary framework and it is beset by many testing powers. One such power is upheaval of data innovation. In the present time, innovation support is vital for the effective working of the financial area. Without IT and correspondence, we can't contemplate the achievement of banking industry, it has amplified the job of banking area in Indian economy. For making a productive financial framework, which can react satisfactorily to the requirements of developing economy, innovation has a vital job to carry out. In recent years, banks in India have put intensely in the innovation, for example, Tele banking, versatile banking, net banking, ATMs, Visas, charge cards, electronic instalment frameworks and information warehousing and information mining arrangements, to get enhancements nature of client administrations and the quick handling of banking activity. Hefty interests in IT have been made by the banks in the assumption for development in their exhibition. However, significant in the presentation relies on, contrasts in the organization, use and viability of IT. Data innovation in financial area alludes to the utilization of refined data and correspondence advances along with software engineering to empower banks to offer better administrations to its clients in a protected, dependable and moderate way and support upper hand over different banks. The meaning of innovation is significantly felt in the monetary area considering the upper hand for banks bringing about the effective client support. In the advancement of Indian Economy, Banking area assumes a vital and pivotal part. With the utilization of innovation there had been an expansion in entrance, usefulness and effectiveness. It has expanded the expense adequacy as well as has helped in making little worth exchanges feasible. Electronic conveyance channels, ATMs, assortment of cards, online banking, and versatile banking are the names of not many results of the interaction of 283 CU IDOL SELF LEARNING MATERIAL (SLM)

robotization and computerization in Indian financial area. Banking is an area answerable for taking care of money, credit, and other monetary exchanges. Banks are by and large seen as secure spots to store and additionally crowd credit and money, unimportant of whether they are in overabundance. Banks offer different records, authentications of store, and different types of sign as a proof of capacity, maybe. Such stores are utilized as loaning cash, or credits. Banks are a significant affordable push in pretty much every country all throughout the planet. It gives the liquidity needed by families and business associations to contribute. Bank advances and credit include organizations not having sufficient cash in any case to put something aside for a forthcoming occasion, including expense instalments and resource buys. Organizations are known to use credits to perform prompt employing practices to work for future interest and extension procedures. Multitudinous Governmental organizations have been set up to neglect the financial area in their individual nations. In the US, the Federal Deposit Insurance Corporation deals with all banks in the nation while India has set up the Reserve Bank of India to look after the country's financial area. Banks are additionally notable for their premium instalments to stores of cash, – the more you let them hold your cash, the more premium they are inclined to pay you. Right now, banks are not needed to keep any level of the store close by, but this might shift from one country to another, contingent upon the hold necessity rules set by the separate government foundations. Banks bring in cash by charging higher financing costs on credits than they accommodate stores. There are two significant groupings with banks—business and retail. Business banks offer types of assistance to organizations and private people, while retail banks give credit, store, and cash the executives administrations to people and families alone. Different characterizations incorporate local area banks that focus on the nearby market with customized administration arrangements, Internet banks giving a wide range of administrations by means of the overall Web, and credit associations being possessed by the clients that give low-premium, customized advances. Higher-level banking incorporates venture banking, used to discover financing for organizations through starting public contributions (IPOs) on their stocks as well as securities. They are additionally used to work with consolidations and acquisitions. Notable venture banks are behemoths, like Goldman Sachs, Bank of America, and J.P. Morgan Chase. Innovation in Banking The centre of banking is the holding of monetary resources though it might have extended a long ways past the times of holding coins for notes of guarantee. That is the place where a whole area was birthed. Banks are straightforward, for they hold resources for its customers, with a guarantee that it very well might be removed should the investor require the resources consequently. 284 CU IDOL SELF LEARNING MATERIAL (SLM)

Banks influence cash stored in their vaults as credits, bringing in cash from the premium hole between advance instalments and investor's premium. While it may not contain all the cash in its vaults, it does as such on paper—and these papers drive the economy forward, pushing it to develop. The whole area faces expanded challenges by contributing generally to forestall surprising credit defaults from sinking the whole association they trade one immense issue for different other irrelevant issues. Furthermore, for a particularly different and tremendous area, innovation is a dependable help, and a device for forceful extension also. Since the time the beginning of the time of data, innovation has been becoming quicker than the information on the best way to apply them. Furthermore, out of such specialized applications, the financial area takes a gigantic lump of them, applying pretty much every safe innovation that we have today. The period of the chatbots in the time of 2017 upset how we see client support. For banking, clients require a sensation of solace and security, while believing the bank enough to accept that they will be available to answer their apprehensions. With the assistance of chatbots, banks can now right away assistance anyone locally available and settle on significant monetary choices, handle all grievances and concerns by and by. They can likewise up-sell and strategically pitch their items, offer relevant devotion to motivating forces, and handle client criticism with extraordinary painstakingness. Also, these are dealt with at staggering velocities—the time it takes for your message to reach is practically equivalent to the time your administration is carried out and executed. Another execution, in blend with chatbots and different other robotized administrations, is man-made consciousness and progressed AI (AML). These neural-network empowered cerebrums are viewed as the eventual fate of administration in banking, depending less on human mistakes while acting more human than regular bots. Man-made intelligence has arrived at a basic tipping point and will be at the core of a joining number of innovative subjects like Data Science, IoT, OCR, etc. This, couple with blockchain, will drive underlying change in the manners in which that numerous monetary activities are taken care of today. Over the course of the following not many years, merchants dealing with such innovation will require profound area aptitude and comprehend the crimps to convey the advanced piece of the assistance—the necessities seldom consolidating specialized capacity and configuration thinking. The financial area has a great deal to anticipate soon as far as mechanical progression— blockchain innovation, for example, will change banking's very establishments by decentralizing its administrations from the current focal position technique to a pervasive organization of PCs, a venture excessively modest over the long haul to not surrender to. Utilizing blockchain empowers banks to upgrade their instalment and settlement handling, and their information sharing techniques in coordinated effort inside foundations. 285 CU IDOL SELF LEARNING MATERIAL (SLM)

Client Relationship Management (CRM) and network protection will change the fate of the area, with re-flooding interests in CRM arrangements expanding incomes of associations. They help to acquire great re-visitations of different establishments by offering advantageous and alluringly planned administrations and answers for clients. Security is an essential piece of the whole area, being depended upon vigorously to guarantee that no cash goes lost. Keeping up with quality network protection measures is getting substantially harder for banks, prompting clients managing fake exercises routinely. Obstructing such issues requires protection techniques set up, like numerous layers of safety, examination and experiences, and versatile safety efforts. The Innovative Impression Banking, starting today, can't make do without innovation. Regardless of how inadequately carried out, innovative changes have made us fully aware of a simpler, more helpful life. A period without innovation will be the cutting edge Stone Age, endure exclusively by a couple. Innovation plays, and will keep on playing, a tremendous job in practically all areas across different enterprises, not to mention banking. The expulsion of innovation is similar to incapacitating the administrations being offered by associations, for innovation an affects us in general. Like it or not, there is more in the store of banking. Innovation is set to assume a significant part in changing how monetary administrations will function across the area, making it simpler for clients and more productive for the suppliers of such administrations. The innovative impression is tremendous on different plans of action of banks and other such monetary organizations, and will keep on applying to all cycles and other back -end tasks. Innovation has done something worth remembering, and nothing can delete its effect now. Transformation of Indian Banking Indian banking has gone through an absolute change throughout the last decade. Moving consistently from a manual, scale-compelled climate to a mechanical driving position, it has been a supernatural occurrence. Such a change happens in a limited capacity to focus time with a minimal expense. Passage of innovation in Indian financial industry can be followed back during the 1990s, the financial area saw different advancement measure. One of the significant targets of Indian financial area changes was to support functional independence, adaptability and contest in the framework and to build the financial guidelines in India to the global prescribed procedures. Effortlessly of authorizing standards, new private and unfamiliar banks arose outfitted with most recent innovation. Liberation has opened up new freedoms to banks to build incomes by broadening into speculation banking, protection, Mastercard’s, contract financing, store administrations and so forth the job of banking is reclassified from a simple go-between to 286 CU IDOL SELF LEARNING MATERIAL (SLM)

specialist organization of different monetary administrations under one rooftop behaving like a monetary grocery store. Important Events in Evolution of Information Technology  Introduction of MICR based cheque processing  Arrival of card based payments  Introduction of electronic clearing services  Introduction of RTGS/NEFT  Introduction of Cheque Truncation System (CTS) or Image-based Clearing System (ICS)  Introduction of Core Banking Solutions (CBS)  Introduction of Automated Teller Machine (ATMs)  Introduction of Phone and Tele Banking  Introduction of Internet and Mobile Banking Recent IT Trends of Indian Banks The financial business is going through a time of fast change to meet contest, difficulties of innovation and the interest of end client. Unmistakably innovation is a critical differentiator in the exhibition of banks. Banks need to take a gander at advancement for item as well as for measure moreover. Today, innovation isn't just changing the climate yet additionally the relationship with clients. Innovation has not broken hindrances yet has additionally achieved unrivalled items and channels. This has brought client relationship into more noteworthy core interest. It is likewise seen as an instrument of cost decrease and viable correspondence with individuals and organizations related with the financial business. The RBI has allocated need to the up degree of innovative foundation in monetary framework. Innovation has opened new items and administrations, new market and productive conveyance channels for banking industry. IT likewise gives the structure to banking industry to address difficulties in the present cutthroat climate. IT empowers to reduce the expense of worldwide asset move. A Portion of the New IT Gadgets Portrayed as Underneath Electronic Payment and Settlement System – The most well-known media of receipts and instalment through banks are debatable instruments like checks. These instruments could be utilized instead of money. The between bank checks could be acknowledged through clearing house frameworks. At first there was a manual arrangement of clearing yet the developing volume of banking exchange arose into the need of computerizing the clearing interaction. 287 CU IDOL SELF LEARNING MATERIAL (SLM)

Utilization of MICR Technology – MICR conquers the impediment of clearing the checks inside financial hours and in this manner empowers the client to get the credit rapidly. These are machine – clear codes added at the lower part of each check leaf which helped in bank and branch-wise arranging of checks for smooth conveyance to the particular banks on whom they are drawn. This no question helped in accelerating the clearing cycle, however actual conveyance of checks proceeded significantly under this incomplete mechanization. CTS (Check Truncation System) – Truncation implies halting the progression of the actual checks gave by a cabinet to the drawee branch. The actual instrument is shortened eventually in transit to the drawee branch and an electronic picture of the check is shipped off the drawee branch alongside the applicable data like the MICR fields, date of show, introducing banks and so on This would wipe out the need to get the actual instruments across branches, besides in uncommon conditions, bringing about a compelling decrease in the time needed for instalment of checks, the related expense of travel and deferrals in preparing and so forth, subsequently accelerating the cycle of assortment or acknowledgment of checks. Electronic Clearing Services (ECS) – The ECS was the primary form of \"Electronic Payments\" in India. It is a method of electronic assets move starting with one ledger then onto the next financial balance utilizing the instrument of clearing house. It is exceptionally helpful if there should arise an occurrence of mass exchanges from one record to numerous records or the other way around. The recipient needs to keep a record with the one of the banks at ECS Center. Electronic Fund Transfer (EFT) – EFT was a cross country retail electronic assets move component between the organized parts of banks. NEFT gave for joining the Structured Financial Messaging Solution (SFMS) of the Indian Financial Network (INFINET). The NEFT utilizes SFMS for EFT message creation and transmission from the branch to the bank's passage and to the NEFT Center, subsequently impressively improving the security in the exchange of assets. Real Time Gross Settlement (RTGS) – RTGS framework is an assets move instrument where move of cash happens starting with one bank then onto the next on a 'ongoing' and on 'net premise'. This is the quickest cash move framework through the financial channel. Settlement 'progressively' signifies instalment exchange isn't exposed to any holding up period. The exchanges are settled when they are handled. \"Net settlement\" signifies the exchange is chosen coordinated premise without grouping with some other exchange. Center Banking Solutions (CBS) – Computerization of bank offices had begun with establishment of basic PCs to robotize the working of branches, particularly at high traffic branches. Center Banking Solutions is the systems administration of the parts of a bank, in order to empower the clients to work their records from any bank office, paying little mind to which branch he opened the record with. The systems administration of branches under CBS empowers concentrated information the executives and helps in the execution of web and portable banking. Moreover, CBS helps in bringing the total activities of banks under a 288 CU IDOL SELF LEARNING MATERIAL (SLM)

solitary mechanical stage. Advancement of Distribution Channels – The major and impending stations of dispersion in the financial business, other than branches are ATMs, web banking, versatile and phone banking and card-based conveyance frameworks. Automated Teller Machine (ATM) – ATMs are maybe most progressive part of virtual banking. The office to utilize ATM is furnished through plastic cards with attractive strip containing data about the client just as the bank. In this day and age ATM are the most helpful instrument to guarantee the idea of \"Any Time Banking\" and \"Anyplace Banking\". Phone banking – Customers would now be able to dial up the banks planned phone number and he by dialling his ID number will actually want to get availability to bank's assigned PC. By utilizing Automatic voice recorder (AVR) for basic questions and exchanges and monitored telephone terminals for confounded inquiries and exchanges, the client can really do whole non-cash relating relying upon phone: Anywhere, Anytime. Tele banking – It is another development, which gave the office of 24 hour banking to the client. Tele-banking depends on the voice preparing office accessible on bank PCs. The guest generally a client calls the bank whenever and can enquire balance in his record or other exchange history. Web banking – Internet banking empowers a client to do banking exchanges through the bank's site on the web. It is arrangement of getting to records and general data on bank items and administrations through a PC while sitting in its office or home. This is additionally called virtual banking. Versatile banking – Mobile financial office is an augmentation of web banking. Versatile banking is a help given by a bank or other monetary establishment that permits its clients to go through with monetary exchanges distantly utilizing a cell phone. Not at all like the connected web banking it utilizes programming, for the most part called an App, gave by the monetary establishment to the reason. Versatile banking is normally accessible on a 24 hour premise. Some monetary establishments have limitations on which records might be gotten to through portable banking, just as a cutoff on the sum that can be executed. Exchanges through portable banking might incorporate getting account adjusts and arrangements of most recent exchanges, electronic bill instalments, and asset moves between a client's or alternately another's records. 14.5 SUMMARY  With the globalization patterns world over it is hard for any country large or little, created or creating, to stay secluded based on what's going on around. For a nation like India, which is quite possibly the most encouraging developing business sectors, such seclusion is almost unthinkable. All the more especially in the space of Information innovation, where India has unquestionably an edge over its rivals, 289 CU IDOL SELF LEARNING MATERIAL (SLM)

staying endlessly or consistency of the world patterns is indefensible. Monetary area overall and banking industry specifically is the biggest high-roller and recipient from data innovation.  Information innovation alludes to the obtaining, preparing, stockpiling and spread of a wide range of data utilizing PC innovation and telecom frameworks. Innovation incorporates all maters worried about the assistance of software engineering and innovation and with the plan, advancement, establishment and execution of data framework and applications. Data innovation design is a coordinated system for gaining and advancing IT to accomplish vital objectives. It has both coherent and specialized parts. PC equipment and programming, voice, information, organization, satellite, different broadcast communications advancements, mixed media are application improvement apparatuses.  Technology has persistently assumed on significant part in the working of banking organizations and the administrations given by them. Data Technology empowers modern item improvement, better market foundation, execution of solid strategies for control of dangers and assists the monetary go-betweens with arriving at topographically far off and expanded business sectors. Web has altogether affected conveyance channels of the banks. Web has arisen as a significant vehicle for conveyance of banking items and administrations. Banking climate has become profoundly aggressive today.  The progressively quick development of innovation out of administrative centres and under the control of the vast majority of the total populace has significant impacts. Despite the fact that the pandemic is broadly credited with speeding up computerized take-up, the full movement is truly starting to move from straight to remarkable.  All the necessities of current life carried light to the way that data for the cutting edge association is an asset equal in significance to land, work and capital. It is extremely fundamental and an invaluable asset. It is no longer news that we are currently in data age that is portrayed by a consistently changing data innovation unrest and a data interstate on which each corporate substance and calling must more, in case it is to get by in the 21st century.  Banking industry is a spine of Indian monetary framework and it is beset by many testing powers. One such power is upset of data innovation. In the present period, innovation support is vital for the fruitful working of the financial area. Without IT and correspondence, we can't contemplate the accomplishment of banking industry, it has developed the job of banking area in Indian economy. 290 CU IDOL SELF LEARNING MATERIAL (SLM)

14.6 KEYWORDS  Anti-Money Laundering (AML): It is a bunch of methods, laws or guidelines intended to stop the act of producing pay through illicit activities.  Asset Liability Management (ALM): It is a strategy organizations utilize in planning the administration of resources and liabilities so a satisfactory return might be procured.  Electronic Funds Transfer (EFT): Electronic supports move is the electronic trade, move of cash starting with one record then onto the next, either inside a solitary monetary organization or across different foundations, through PC based frameworks.  National Electronic Funds Transfer (NEFT): National Electronic Funds Transfer is electronic assets move framework, which works with move of assets to other ledgers electronically.  Real Time Gross Settlement (RTGS): Real Time Gross Settlement frameworks are reserves move frameworks where move of cash or protections happens starting with one bank then onto the next on a \"ongoing\" and on \"net\" premise. 14.7 LEARNING ACTIVITY 1. What are the new emerging technologies adopted by the banking industries? ___________________________________________________________________________ ___________________________________________________________________________ 2. What are the new actions taken by RBI and gov to prevent online frauds? ___________________________________________________________________________ ______________________________________________________________________ _____ 14.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What is MICR technology? 2. What is CTS (Cheque Truncation System). 3. Explain the Electronic Clearing Services (ECS). 4. What is Electronic Fund Transfer (EFT)? 5. Write a note on Core Banking Solutions (CBS). 291 CU IDOL SELF LEARNING MATERIAL (SLM)

Long Questions 292 1. Discuss the recent IT trends of Indian banks. 2. Explain the impact of IT on banks. 3. Explain global trends of technology. 4. Explain the role &uses of technology up gradation. 5. What is the uses of technology up gradation? Explain IT devices. B. Multiple Choice Questions 1. What does upon detection of a counterfeit note at the counter, bank? a. Returns the note to the customer b. Exchange with a genuine Note c. Deposit in account d. Impound the note and issue receipt 2. When does fixed deposit can? a. Not be withdrawn before maturity b. Paid only after maturity c. Withdrawn before maturity d. All of these 3. What does interest on FDRs is compounded on? a. Monthly basis b. Quarterly basis c. Half yearly basis d. Yearly basis 4. What is contents of locker are? a. Only known to hirer b. Known to bank c. Both (a) & (b) d. Only know to fix 5. What does if locker rent is not paid, bank can? a. Seal the locker b. Stop operation of locker CU IDOL SELF LEARNING MATERIAL (SLM)

c. Break open the locker after giving suitable notice d. All of these Answers 1-d, 2-c, 3-b, 4-a, 5-d. 14.9 REFERENCES References  Rajesh, R&Sivagnanansithi, T. (2009). “Banking Theory: Law and Practice”. Tata McGraw Hill Publishing Company Ltd.  Meir, Kohn. (1994). Financial Institutions and Markets. New York. McGraw Hill Publishing Company.  Khan, M, Y. (2009). Indian Financial System. Tata McGraw Hill. Textbooks  Hajols, T, N. (2009). “Money and Banking”, Gopaljee Enterprises.  Muralitharan, D. (2009). “Modern Banking: Theory and Practice”. PHI Learning Pvt. Ltd.  Nigam, B, M. (1997). Banking in India in Eighties. New Delhi. UBSPO. Websites  http://www.bankingindiaupdate.com/car.htm/  http://www.scribd.com/doc/21923483/ROLE-OF-BANKS-IN-INDIAN-ECONOMY  http://chestofbooks.com/finance/banking/Banking-Credits-And-Finance/  http://www.thehindubusinessline.com/ 293 CU IDOL SELF LEARNING MATERIAL (SLM)