Knowledge-based Systems in Banking Sector

Till the early 1990s, banking industry in India was a near-monopoly of the Government. In January 1993, the Reserve Bank of Indiaissued guidelines for licensing of new banks in the private sector. Since them, competition in the banking sector has increased with the entry of private banks, permission to foreign bank to open new branches and relaxation of various restrictions on public sector banks which are now allowed to access the capital market to raise funds. In view of enhanced competition, the baking sector has already taken strides toward computerization and automation of their operation. However, this alone will not solve their problems in processing large amount of data and decision-making in scrutinizing and vetting proposals and projects for advances. It is difficult to handle loan proposal which need to be appraised from legal technical, and economic angles. The need for electronic processing of loan proposals with the help of an expert system is obvious in the emerging scenario. This book explains recent developments in Indian banking. More specifically, it deals with how the experts in the field should take decisions in the process of evaluating a loan proposal, particularly small-scale industry term loans.