Banking with Technology

India’s banking sector has made rapid strides in reforming and aligning itself to the new competitive business environment. Indian baking industry is in the midst of an IT revolution. Technological infrastructure has become an indispensable part of the reforms process in the banking system, with the gradual development of sophisticated instruments and innovations in market practices. In India, the reserve Bank of India (RBI) has taken active interest in developing appropriate technological infrastructure to facilitate market development in areas such as payment and settlement systems, delivery versus Payment (DvP) and Electronic Funds Transfer (EFT). For modernizing the payment and settlement systems in India, a three-pronged approach has been adopted with due emphasis on consolidation, development and integration. The consolidation of the existing payment systems involves strengthening of computerized cheque clearing and expanding the reach of Electronic Clearing Services (ECS) and Electronic Funds Transfer (EFT). The retail payment system was given an impetus with the introduction of a new facility, viz. Special Electronic Funds Transfer (SEFT) System. The critical elements of the development strategy involve opening of the new clearing houses, interconnection of clearing houses through the Indian Financial Network (INFINET), development f real Time Gross Settlement (RTGS) system, centralized Funds management System (CFMS), negotiated dealing System (NDS) and the Structured Financial Messaging System (SFMS). This book contains 19 articles by scholars specializing in the area of banking technology. it provides an insight into the current development and future of technology upgradation in the Indian banking industry. The book, it is hoped, would provide useful information and inputs to all those interested in updating themselves with latest developments in modern banking practices.