Information Technology (IT) Empowerment of Indian Banks

Abstract

Effective Information Support (IS) is very important for any bank. Nationalised banks have failed to automate their banking operations and are thus unable to support the banking needs of a new generation of customers, who want prompt and efficient service.

Realising the need for IT empowerment, the Reserve Bank of India (RBI) has issued several directives (3, 4, 5 and 7) to use Information Technology for improving house keeping, customer services, control over branches’ operations and timely generation of policy oriented information for the decision makers at various levels of banking.

Attempts were made to introduce distributed data processing and decision aiding approach, data management information systems, use of PC technology, modular aproach for designing the system, parallel flow of information and real time processing concept. Why has it taken so long for the IT empowerment of Indian banks?

Get full access to this article

View all access options for this article.

References

Allura

, (1998): “Banking on Technology”, Proceedings of EDICON, May, pp.215–237.

Prabhu

A. G.

, (1998): “ICICI Bank: Innovative Banking on the Internet”, Proceedings of EDICON, May, pp.211–214.

Rangarajan

(1984): Committee Report on Mechanisation in (RBI Report) Banking.

Ratnakar Committee, (1987): Report on MIS and Application Areas (RBI Report) for Mechanisation.

Subbarao, (1983): Report on MIS in Banks Committee and Productivity (RBI Report).

Sharma

S.K.

; (1995): MIS in Indian Banks, Indian Management, pp. 37–49.

Tandon

, (1975): Committee Report on Guidelines (RBI Report) for Follow-up of Bank Credit.

World Bank’s Report, (1998): World Development Indicator, pp.29–65.