Computerization of banks in India
Computerization has made easy for the banking industry. The transaction involved is high and due to technology it is easy to access. Even though they need continuous training for the software that is used by the banking industry as per the requirement of the market demand. Intensive technical training is needed in urban and rural areas. In case of rural areas still connectivity is the biggest problem. So in rural areas many times due to technical problems faced by server creates a problem for Bank Mangers.
In early 80’s era under the leadership of Dr Rangarajan Committee who then Governor of Reserve Bank of India to suggest measures for phased introduction of computers and mechanization of banking activities in India.
The need was felt for banking sector to provide improved customer service, reducing transaction costs and increasing productivity, was the main drivers for banking sector to adopt IT. And banks were facing immense competition from private and foreign banks. IT can help them move from the present scenario where they are working without sophisticated technology to provide a platform for banking industry’s .A time has for IT and the financial communal to work together and find the customized IT solution to make the Indian Banking sector globally competitive.
By adopting technology in the banking sector it will provide real time availability of transaction processing through multiple channels that can be made available. It would enhance a bank’s ability to cross s sell products, ensure better management and security and safety of funds and increase efficiency through integration of systems across various locations.
With growing competition and having competitors like foreign banks and private sector banks in the race. The banking sector would need to equip themselves in the competition by adopting new technology.
Present Position of Computerization of Banks in India
Under the able guidance of Dr.Rangarajan Committee of technology , banks started initiating measures to computerize their various operations. Nationalized Banks (PSU banks) started identifying important /large branches for full branch computerization .Some Banks which had fully computerized thought their branches with interconnecting their computerized branches using leased telephoned lines or through satellite system. It was initiated due to financial sector reforms initiated in the early 90s through Narasimham Committee advised.Further globalization and liberalization measures introduced during 1990s allowed setting up of new private sector banks and free entry of foreign banks into Indai.This brought in a different and new operating environment to banks.