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“A STUDY ON RECENT TRENDS ANDCHANGES IN INDIAN BANKING SECTOR”AbstractIndia’s managing an account segments has made quickwalks in improving and make even itself to the new focused business condition.

Indian Banking Industry is amidst the Information Technology Revolution and itsprogressions has advanced the opposition among the Banks around the world.Indian financial condition is seeing way breaking change measures. The moneyrelated area, of which the managing an account industry is the biggest player,has likewise been experiencing a transformative CHECK MY ESSAYchange. Today, we are having agenuinely very much created managing an account framework with various classesof banks – open segment banks, remote banks, private area banks – both old andnew age, local provincial banks and co-agent keeps money with the Reserve Bankof India as the wellspring Head of the framework. Amid the most recent a longtime since 1969, enormous changes have occurred in the keeping money industry.The banks have shed their conventional capacities and have been advancing,enhancing and turning out with new kinds of the administrations to oblige thedeveloping needs of their clients.

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Banking sector is the key player of an economy.Since origin this sector has gone through many changes. People today are highlybankable. So there have been many changes and innovations in this sector. Manyreforms have been made. Banking is now confined not only in retail banking.Shape of banking has been modified and to meet the demand of people E-banking,Islmaic banking etc have been invented. Banking products has been modernizedand people are now enjoying so many banking products.

This paper focuses on allthe changes and trends experienced by banking sector.INTRODUCTION:            Indiais one of the best 10 economies all around, with tremendous potential for themanaging an account segment to develop. The most recent decade saw a colossalupsurge in exchanges through ATMs, and Internet and portable keeping money. In2014, the nation’s Rs 81 trillion (US$ 1.34 trillion) managing an accountindustry is set for a more noteworthy change. Two new banks have effectivelygotten licenses from the legislature. Besides, the Reserve Bank of India’s(RBI) new standards will give motivating forces to banks to spot potentialawful credits and make restorative strides that will check the acts of rebelborrowers. TheIndian government’s part in extending the saving money industry has beencritical.

Through the Financial Inclusion Plan (FY 10– 13), keeping moneyavailability in the nation expanded more than three-crease to 211,234 towns in2013 from 67,694 toward the start of the arrangement.Banksare also looking at new ways to attract customers. In September, 2013, ICICIbank leveraged the popularity of the social platform, and launched its Facebookbanking service, Pockets. The service enables customers to transfer funds andpay bills from within the website. LITERATUREREVIEWMoney related area change has been started in suchhuge numbers of nations with a specific end goal to accomplish the monetaryadvancement.

Imperative issue is currently whether there exists any associationbetween the improvement and change; and whether money related changes increating nations empower development. In spite of the fact that few scholasticwriting and observational investigations demonstrate that monetary changecreates money related framework by enhancing saving money industry’saggressiveness, activation of funds, and assignment of productivity whereby accomplishingmonetary development (Besanko and Thakor, 1992; Claessens and Laeven, 2004),there are restricted examinations those show budgetary changes are troublesomeand expands the weakness of the monetary framework (Rajan, 1992; Allen andGale, 2000).Literatures analyze several aspects of bankingsector reforms and show its consequences in different countries. Khan and Aftab(1994) reviewed the effect of denationalization and privatization aspects offinancial reforms in Pakistan. They conclude that denationalization of banksimproved performance of these banks in terms of growth of assets, recovery ofloans and ratio of bad loans.Impact of banking sector reforms to the fiscal andmonetary stability of many transitional economies was assessed by Feldman andWagnar (2002) and they observed that the success of reforms significantlycontributes to the fiscal and monetary stability.Relationship between reform and bank efficiency wasalso examined by Fu and Heffernan (2008). They studied the performance ofChinese banking sector, and reviewed the reforms and their influences on theROE, ROA and NIM.

They found a significant relationship between profitabilityand reform.Brownbridge and Gockel (n.d.) examined necessity ofbanking sector reforms in Ghana in the 1980s and evaluated its impact. Theyconcluded that while the reforms have brought about improvements in the bankingsystem, banks are now more prudently managed and supervised.OBJECTIVES OF THE STUDY·        Themain objective of the study is to understand Banking sector.·        Toexplain the changing banking scenario·        Tounderstand the emerging technological trends in banking sector in india.

RESEARCH METHODOLOGY:The present research study is based on the analysisof the secondary data and the research proposes to throw light on the emergingtechnology trends in the banking sector. The secondary data that are mainlyused are books realted to E-Banking,Banking Services Quality, E-Commerce,M-Commece,Infromation Tecnology, Marketing, Banking, Finance etc.            Theresearch study pertaining to the above objectives was collected and reviewedthe literature on the topic concerned.

FIVETECH TRENDS THAT WILL CHANGE BANKING EXPERIENCE IN INDIA     2016 was, undoubtedly, the year of disruptions on a global scale. The eventsof last year – most notably India’s demonetisation drive, the US elections andBrexit – have begun to or are soon expected to create far-reaching impacts onglobalisation. Of these, the banking and financial sectors are the ones thatare likely to witness the most changes.

Looking at the scenario in India, onone hand are traditional banks that are still encumbered by legacy systems andprocesses. On the other, a global, digital India has entered an age ofinnovation with the adoption of updated technology. Nevertheless, despite theirlegacy systems, Indian banks are leading the digital transformation byconstantly reinventing their business to stay ahead in this age of digitalhyper-connectivity.The new financialyear can be expected to fuel growth in the banking sector with the developmentof latest innovations like Unified Payments Interface (UPI), adoption of cloudtechnology, etc. Some of the key technology trends that will reshape Indianbanking are as follows:  1. Open bankingIn 2017, many bankshave already introduced and are operating their open, unified solutions andmany more are likely to follow. Consequently, this will facilitate the creationof a well-connected financial and non-financial ecosystem of multiple,interconnected services and service providers.The recentlylaunched Unified Payments Interface (UPI) by the National Payments Corporationof India (NPCI) will particularly serve as a gateway to future innovations inthe open banking domain.

UPI also promises to enable payment service platformsto enhance their products and offerings without being bound by accountrelationships. Customers today desire maximum flexibility, which unifiedinteroperable interface guarantees, allowing for innovation among serviceproviders to drive improved customer experiences.2. Cloud technologyCloud computingis the one technology that supports many other disruptive technologies such asBig Data, artificial intelligence (AI), blockchain, IoT. The more progressivebanks around the world have already made significant headway with the adoptionof cloud computing, and Indian banks are fast warming up to its many benefits.They have begun to realise the degree of agility it brings into business, afact that has already been evident through the success of fintech companies.

Asa result, business models for banks and fintech companies in the future areexpected to give much greater emphasis to cloud computing. Demonetisation haspropelled India’s move towards being a cashless society, or at least a less cash-dependentsociety; cloud technology will provide banks the much-needed bandwidth to dealwith the rising demand for and scale of digital transactions.3. BlockchainBlockchain willbe a substantial force enabling banks through the process of reinvention andsatisfy increasing customer demands. However, this will not be the year whenblockchain goes mainstream, but banks will take specific projects from pilot toproduction stage and power inter-organisational processes through blockchain.

Apartnership between Emirates NBD and ICICI Bank announced in October2016 will see the launch of a blockchain pilot network to processinternational remittances and trade finance and is expected to herald thetransition of blockchain into mainstream banking in the country.4. Artificial IntelligenceArtificialintelligence (AI) has the potential to transform both front office and backoffice operations with its self-improving programs. The brilliance of AI hasalready been evident in the enhanced customer experiences and seamless,differentiated services on digital channels. It has also helped in creatingadvanced security measures by integrating with banking infrastructure.

The useof intelligent digital assistants is now common in some of the more developedbanking markets like US, Japan and Hong Kong. The self-learning capabilities ofthese programs help them get better with every subsequent interaction.5.

Simplifying banking architectureThe foundationfor the integration and development of any of the above technologies will bethe simplification of banking architecture. Banks will gradually break downtheir architecture into components in place of the conventional monolithicstructure. Simply put, complex architecture will be split into smallerfragments for easy deployment and upgradation of certain functionalities.Besides enabling agile modernisation to keep up with technological trends,compartmentalisation will also allow to mitigate risks associated with specificprojects. In addition, banks will be able to enhance their capabilities furtherthrough the implementation of enterprise-class applications.The mobile-firststrategy has been adopted by many Indian banks to provide customised offeringsthrough mobile apps. There are other methods of customer interaction besidesapps such as smart virtual personal assistants on mobiles that can drivegreater, more interactive customer engagement.

New-age service providers areleading by example; Ola Cabs now allows customers to make bookings throughSiri. So, it wouldn’t come as a surprise if Siri soon helps you move moneyaround or open a new fixed deposit account with your bank.The Indiangovernment, with the demonetisation initiative asserted its plans to transformIndia from a cash-based to a digital economy. The Goods and Services Taxsystem, which is set to be effective from July 1, has been built on a largelydigital foundation and is expected to provide a considerable push to theeconomy’s digitisation efforts and greatly influence future trends inbanking. RECENT TRENDS IN BANKING The Indian banking Industry has started providingservices electronically over the internet. These services rendered overelectronic media includesØ  Automatic Teller Machine(ATM)Ø  Electronic Data interchange(EDI)Ø  Shared Payment Network System (SPNS)Ø  You Need Only One(YONO)Ø  Real Time Gross Settlement(RTGS)Ø  Electronic Fund Transfer(EFT)Ø  Electronic Clearing Services(ECS)Ø  Tele BankingØ  Phone BankingØ  Credit CardsØ  Point of Sale-POSØ  D-Mat Accounts1. AUTOMATED TELLER MACHINEAn automated teller machine (ATM) is anelectronic banking outlet, which allows customers to complete basictransactions without the aid of a branch representativeor teller.

Anyone with a credit card or debit card canaccess most ATMs. The first ATM appeared in London in 1967, and in less than 50years, ATMs spread around the globe, securing apresence in every major country and even tiny little island nations such asKiribati and the Federated States of Micronesia.2. ELECTRONIC DATA INTERCHANGE (EDI)EDI (Electronic Data Interchange) is the transfer of data from onecomputer system to another by standardized message formatting, without the needfor human intervention. EDI permits multiple companies — possibly in differentcountries — to exchange documents electronically. Data can be exchangedthrough serial links and peer –to-peer networks, though mostexchanges currently rely on the Internet for connectivity.

3. SHARED PAYMENT NETWORK SYSTEM (SPNS)PSNS installed by the IBA in the city of Mumbai,enables electronic banking services like cash transactions, extended hours ofbanking, utility payments, cheques, point of sale facilities  by the  SPNS can go to any ATM linked.4. YOU NEED ONLY ONE (YONO)State Bank of India,the country’s largest public sector bank, on 24th November 2017, launcheda unified integrated app called YONO that would offer all kinds of financialand lifestyle products. It is anintegrated digital banking platform  toenable users to access a variety of financial and other services such as taxibookings, online shopping, or medical bill payments.Currently YONO is offeredas a smartphone app for both Android and iOS.

5. REAL TIMEGROSS SETTLEMENTReal Time Gross Settlement (RTGS)is an electronic form of funds transfer where thetransmission takes place on a real time basis.In India, transfer of funds withRTGS is done for high value transactions, the minimum amount being Rs 2 lakh.The beneficiary account receives the funds transferred, on a real time basis. 6.NATIONAL ELECTRONIC FUND TRANSFER (NEFT)National Electronic Funds Transfer (NEFT)is a nation-wide payment system facilitating one-to-one funds transfer. Underthis Scheme, individuals can electronically transfer funds fromany bank branch to any individual having an account with any other bank branchin the country participating in the Scheme.

7. ELECTRONIC CLEARINGSERVICES (ECS)ECS is an electronic mode of fundstransfer from one bank account to another. It can be used by institutions formaking payments such as distribution of dividend interest, salary, pension,among others.8.

PHONE BANKINGTelephone banking is a service provided by a bank or otherfinancial institution, that enables customers to perform a range of financialtransactions over thetelephone, without the need to visit a bank branchor automated teller machine. 9. CREDIT CARDSA credit card allows you to borrow money from your bank to make yourpurchases, whether you’re buying a burger or a round-trip ticket to France. Aslong as you pay back the money you borrowed within the “grace period” of 25-30days, you don’t have to pay extra. If you don’t pay it back in that timeperiod, you’ll have to pay interest a percentage of the money you owe the bankon top of what you borrowed10. POINT OF SALE- POSA POS or point of sale purchase is the”point” where a transaction is finalized or the moment where a customertenders payment in exchange for goods and services.

Any form of payment can beused, such as cash, debit cards, credit cards, mobile payments and evenBitcoin. CONCLUSION:Indian Banks are dependable brands in Indian markets, in the days tocome, banks are relied upon to assume an extremely valuable part in the part inthe financial improvement and developing business sector will give plentiful businesschances to outfit. Human Resource Management is expecting to be of morenoteworthy significance. As managing an account in India will turn out to beincreasingly learning bolstered, human capital will rise as the finestresources of the keeping money framework. At last managing an account isindividuals and not simply figures.Reference:1.

www.google.com2. www.wikipedia.

com3. Banking and Current Affairs4. International Journal of Current Research5.International Journal of Science and Technologyand Management     

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