Automation is the technology by which a process is performed by minimum human assistance. Automation is also known as ‘Automatic Control’ which is done by the use of different control systems. The term ‘Automation’ has been derived by the word automatic, which was widely used before 1947 when Ford established an Automation Department.
Before 1980’s, Indian Banking System was completely using traditional ways of transaction and there was no involvement of technology in the customer service, book-keeping and MIS reporting the urgent need for computerization was felt in the Indian Banking Sector. In 1988, RBI set up a committee headed by Dr. C. Rangarajan for the computerization in Indian Banking System.
With the use of Standalone PCs and Local Area Network (LAN) connectivity information technology was introduced in Indian Banking System. Core Banking was a great revolution in Indian Banking System where a group of networked bank branches were connected to one another, where customers may access their bank account and perform basic transactions from any of the member of branch offices. Thus, branch banking changed to bank banking. Through Core Banking platforms such as Finacle design by Infosys, BaNCS by TCS, and FLEXCUBE by I-Flex gained a tremendous popularity.
Indian Banks were facing tough competitions from private and foreign banks which were rapidly expanding its branches in India. After the Liberalization of Economy in 1991-1992, Indian banks were completed computerized and there were introduction of technology.
E-Banking is also known as online banking or home banking. E-Banking is a product designed for the customers. E-Banking is a safe, fast, easy and efficient electronic bank account to carry out online banking services; 24 hours a day and 7 days a week. Online Banking was first introduced in the early 1980’s in New York, United States. The banks of U.S that offered these services were Citibank, Chase bank, Chemical Bank and Manufacturers Hanover. Following are the features of Online Banking Facilities:-
• Non-transactional tasks through online banking are:-
1. Viewing account balances
2. Viewing recent transactions
3. Doventating bank statement
4. Viewing images of paid cheques
5. Ordering cheque books
6. Download periodic account statements
7. Downloading applications for M-Banking, E-Banking, etc.
• Transactional features of online banking are:-
1. Funds transfers between the customer’s linked accounts
2. Paying third parties
3. Investment purchase a sale
4. Loan applications and transactions
5. Credit card applications
6. Bill payments
7. Financial institution administration
8. Manage of multiple users having varying level of authority
9. Transaction approval process
E-Banking was a great revolution in banking system as it saves time of customers by carrying out banking transactions at any place and at any time with the help of internet.
An Automated Teller Machine (ATM) is an electronic device that allows customers to carry basic transactions without the help of a branch office or teller. To carry out transactions, customers should have credit card or debit card. The first ATM was opened in London in 1967, within the 50 years, ATMs spread around the globe. According to the RBI report in 2016-17, there are 2,22,475 ATMs. Thus, ATM’s channels have resulted in the convenience of anytime banking.
Indian Government is aggressively promoting digital transactions. Examples of such digital transactions are United Payments Interface (UPI) and Bharat Interface for Money (BHIM) by National Payments Corporation of India (NPCI) is vital steps for innovation in the Payment Systems Domain.
Implementation of electronic payment such as NEET (National Electronic Fund Transfer), ECS (Electronic Clearing Service), RTGS (Real Time Gross Settlement), Cheque Transaction System, Mobile Banking System, Debit Card, Credit Cards, Prepaid Cards are gaining wide acceptance in Indian Banks.
Automation in Banking Sector has proved to be remarkable landmarks in banking sector across the Globe.