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Research Paper | Economics | India | Volume 10 Issue 8, August 2021

Indian Banking - A Long Journey of Incredible Transformation from Traditional Branch Banking to Digital Banking

Dr. S. Upendra Sastry

Abstract: Existence of a sound financial system with Banks constituting an integral part of it is a pre-requisite for any country to prosper, without India being an exception to this. As repositories of deposits and purveyors of credit, Banks play a strategic role in the sustainable socio- economic development of our country. Though ,the Banks in our country have initially started their journey by choosing the path of serving the banking needs of only the affordable and affluent sections and continued such system during the Pre- Independence Period, like other sectors of our economy, even Banking Sector is also expected to be responsive to the needs of the disadvantaged sections, to enable the Union Government to accomplish the goals of the socialistic pattern of society- the path chosen by the Government after the attainment of Independence. As the Social Banking and Mass Banking have become the crying needs for the Government, to make weaker sections and vulnerable groups enjoy access to the formal Banking facilities, Governments during the Post - Independence Period were required to go for the Nationalization of Banks.As Banks were asked to focus much on massive branch expansion and priority sector lending, Banking Sector in our country has suffered a lot on account of the unremunerative lending practices followed by it. Again, to make Banking Sector more vital and vibrant and enjoy competitive advantage, Government was required to focus on reformation of the Banking Sector through a Red Carpet Welcome gave for some concrete steps like Consolidation of Banking Industry through Mergers, adoption of ICT enabling the Banks in our country enhance customer experiences through customized banking products using ICT. Thus, Indian Banking Industry has a long journey beginning its activities with Class Banking has subsequently changed its path to Mass Banking, Social Banking and now settled in e- Banking providing variety of benefits to the customers viz easy and any time accessibility to the banking services, ease of doing banking, cost effectiveness in enjoying the Banking Services.

Keywords: Branch Banking, Statutory Liquidity Ratio, Cash Reserve Ratio, Information and Communication Technology, Technology-Enabled Banking Services, Electronic Transfer of Funds, Point of Sales Services

Edition: Volume 10 Issue 8, August 2021,

Pages: 14 - 19

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