Question

explain any three modern trends of e-banking in India.(3mark only)

Answer 1

Answer:

The development and the increasing progress experienced in the Information & Communication Technology coupled with the expansion of the global economy paved the way for the transformation of the Indian banking system’s role from traditional trade financing to mobilizing and channeling financial resources more effectively in almost all facets of life. Intense competitive environment, changing business environments, globalization and the advancement of ICT are the important factors that have forced Banking and Financial services to change. Customers are also demanding greater convenience and accessibility as reflected in longer branch opening hours and an increase in the choice of delivery mechanism. Therefore, with the passing of the traditional banking sector to electronic banking, new strategies have become necessary in order to attract new and retain existing customers. Banks are the main stimulus of the economic progress to play a vital role in spearheading the economic development of the nation.

Answer 2

• The major growth drivers are increase in retail credit demand, proliferation of ATMs and debit-cards, decreasing NPAs due to Securitization, improved macroeconomic conditions, diversification, interest rate spreads, and regulatory and policy changes (e.g. amendments to the Banking Regulation Act).
• Transactional Websites allow customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc.
• Certain trends like growing competition, product innovation and branding, focus on strengthening risk management systems, emphasis on technology have emerged in the recent past.

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