m To know about the different phases of

banking
m To evaluate the intervention of state in
banking sector over years.
m To know about E-Banking.
` ándigenous Reign
` Govt. ánterventions
` Nationalisation
m @edas &Manusmriti
m Kautilya·s,Arthashastra suggested
maximum and minimum interest rates.
m Kautilya & manu recommended 15%
interest per annum on capital.
m British rule almost wiped out these tribes
by bringing European Banks from Urban.
m They moved to villages.They survived
even today.
 Borrower is known.
 @ery little documentation.
 Sahukar usually a bad guy.
 Exorbitant rates of interest.
 Compounded shorter intervals.
 Records tampered.
 Mostly mortgaged lending on
lands,properties,jewels,etc
 Most cases poor borrowers surrendered
their properties.
m Govt interventions began in 1930·s .
m RBá which is the centeral bank was
created in 1935 by passing RBá Act 1934.
m RBá is the sole authority for
^ ássuing bank notes
^ Supervisory body for banking operations in
ándia.
^ Supervising exchange control and banking
regulations.
^ Administers the government monetary
policies.
 án the wake of swadeshi
movement a number of banks with
ándian management were
established in the country namely-
PNB Ltd,Bank of ándia Ltd, Canara
bank Ltd,Bank of Baroda,Central
bank of ándia.
 án 1955,govt nationalised imperial
bank of ándia with extensive
banking facilities on a large scale.
 át formed SBá to act as the principal
agent of RBá & to handle the
banking transactions.
m _n July 1969 14 major banks were
nationalised.
m _n 15 April 1980 six more commercial
banks were nationalised .
m Today 80% of the banking segment in
ándia is under govt.
The provision of banking service through
electronic channels and the customer
can access the data without any time
and geographical limitation.
m án 70·s, banks started to establish centralized data
processing centers.
m Essentially the roles of these data processing
centers are:
- collect the handwritten documents from
branches
- compile the documents
- manual data entry by the operators
- generate reports for the bank staff and the
central bank
- execute some banking transactions
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m Larger customer coverage

m Reducing the costs of operations

m Promoting their services and products

internationally

m áncreasing the customer satisfaction

and providing a personalized
relationship with customers
m To run its operations more effectively

m Lower cost than traditional financial

management mechanisms
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- 24 hours a day, seven days a week

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- Reducing transfer fees

 

- Faster circulation of assets

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- Fostering competition in financial market
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m A need for customer skill to deal with computers and
browsers.

E.g. Elderly, Housewives ĺ Inconvenient

m Site change it will make the customer have some

confusion or delay.
m Security Risk
m áncreasing number of fraudulent bank
websites
m Fake emails purporting to be sent from
banks
m Use of Trojan Horse programs to capture
user á s and passwords
m Email send from Fraudulent bank
m @erify the personal information
m Guide customer enter the fraud link
m isclosing their ATM card numbers
and their passwords