Post on 11-Nov-2014
description
transcript
BANKING SYSTEM IN INDIA
Presented by
VINOD SOLANKI
STD = X
ROLL = 43
DUNNES INSTITUTE
IntroductionOld banking systemNew banking systemConclusionReferences
Contents
“A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital market. A bank connects customers with capital deficits to customers with capital surpluses.”
INTRODUCTION
OLD BANKING SYSTEMPHASE 1 Early phase from 1786 to 1969 of
Indian banks.
PHASE 2 Nationalization of Indian Banks
and up to 1991 prior to Indian banking sector Reforms.
PHASE 3 New phase of Indian Banking
system with the advent of Indian Financial & Banking Sector Reforms after 1991.
FUNCTIONING OF OLD BANKS ACCEPTING DEPOSITS ISSUAL OF DEMAND
DRAFTS GRANTING LOANS &
ADVANCES UNDERTAKING SAFE
CUSTODY OF VALUABLES,IMPORTANT DOCUMENTS & SECURITIES BY PROVIDING SAFE DEPOSIT VAULTS OR LOCKERS
DOCUMENTATION IS MAINTAINED THROUGH LEDGERS ONLY.
MINIMUM BALANCE FOR OPENING AN ACCOUNT WAS MORE DURING THIS PERIOD.
CREDITS WERE GRANTED AT VERY HIGH RATE OF INTEREST.
TOKEN SYSTEM FOR WITHDRAWAL OF CASH FROM THE ACCOUNT.
POSSIBILITY OF HUMAN ERRORS .TIME CONSTRAINT.CUSTOMER RELATIONSHIP WAS LIMITED.OVER DRAFT WAS NOT AVAILABLE.PROCESSING FEES WAS CHARGED FOR ALL
THE TRANSACTIONS .PASSING OF CHEQUES WAS DELAYED.LIMITED USE OF TECHNOLOGY.
DISADVANTAGES
WHY TECHNOLOGY IN BANKS ?
TO TRANSFORM FINANCIAL SERVICES INDUSTRY IN THE NET-WORKED WORLD:
-INCREASED OPERATION EFFICIENCY,PROFITABILITY & PRODUCTIVITY
- SUPERIOR CUSTOMER SERVICE
- PROVIDE SERVICES / PRODUCTS ACROSS A RANGE OF CHANNELS
- TO BE FUTURISTIC AND HAVE “TIME” VALUE IN ALL ITS DEALINGS WITH CUSTOMERS
-IMPROVED MANAGEMENT/ACCOUNTABILITY
-BETTER CROSS SELLING ABILITY
-MINIMAL TRANSACTION COST
-IMPROVED FINANCIAL ANALYSIS CAPABILITIES.
New Banking System
Pre-requisites for Technology
Planning for
Disasters
Business process Re-Engineering
Human Resource
empowerment
Focus aspects of New Banking SystemsCORE BANKING
SOLUTIONS(CBS)
“Pooling data at central server”
CUSTOMER RELATIONSHIP MANAGEMENT(CRM)
ELECTRONIC FUND TRANSFER(EFT)ELECTRONIC CLEARING
SYSTEM(ECS)ANY BRANCH BANKINGRISK MANAGEMENTATM’SCARD MANAGEMENTMOBILE BANKING
Focus aspects of New Banking Systems