E-Banking Growth and Challenges in India

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Ms. M. Sowmya, Dr. G. Prabakaran, Dr. Tejas Vyas


Number of developments have taken place in the Indian banking industry since liberalization, privatization and globalization. With the advent of these changes, the banking industry in India has under gone tremendous changes. A Strong, healthy and sustainable banking industry is very important for the overall development of any economy.

Today banking is known as innovative banking.With the development of information technology, the whole world has now become a global village and it has brought tremendous changes in the banking industry. Since 1980s, Indian banking sector has undergone through technological advancement phase and most of the banks have countered their business as e-business. With these technological advancements, a brand new era of banking has developed, which is known as e-banking.

Today many people are moving towards e-banking as buy its use it becomes easy for customers to manage their account from any place and at any time and this charge very nominal cost. It is not wrong to say that e-banking is one of the most popular and latest technological wonders in the field of banking which has given the banking sector a new dimension for growth. E–banking has helped the banking industry to improving their customer relations. Further, new technology has changed the traditional way of doing banking business. Customers can view the accounts, get account statements, transfer funds, order drafts by using an electronic channel.

E-banking has enabled the Indian banking industry to not only come out with new products and services but also brought efficiencies in the backend processes.E-banking services are new and services for Indian customers. As a result Indian banks are investing heavily in the technologies such as branch automation and computerization, core banking, Tele-banking, mobile banking (M-banking), internet banking, automated teller machine (ATMs), data warehousing etc. The impact of automation in the banking sector is undoubtedly difficult to measure.The present paper mainly focused on the need for e-banking in India and alsoexamines thegrowth and challenges of E-banking in India.

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