Technical Revolution In The Banking Sector Over The Ages

Digitalization and technology have revolved around almost all sectors. It involves using technology to renovate a business model and provide more value-added services. Technological advancements have been seen worldwide over the past few decades. It has left an indelible mark on every platform and everything human beings can fathom. The outburst of technology has been noticed in all sectors, and banking has also adopted the technical revolution.

Banks worldwide have made a tremendous stride through digitalization, coping with the competition and providing the best of services. Online or digital banking refers to conducting banking methods more smoothly and efficiently through the internet. Digital banking aims to make the tile computerized services fulfill the requirements efficiently. Online banking makes it easy for customers to check their account details, make bank transfers, pay online bills and transfer money from one account to another faster. Customers embrace hassle-free online banking processes.

The digitalization of the banking sector in India started with the establishment of ATMs. Further developments in the banking sector included telly banking, electronic compensation, services, electronic funds, and transfer system. MICR, RTGS, point of sale, terminals, etc. E-banking has reduced costs drastically and helps generate revenue through several channels. Several steps and initiatives have been adopted by the RBI and national payment Corp of India to strengthen banks’ payment and settlement systems, just like the launch of the United payments interface, UPI and Bharat interface for money. Such initiatives and platforms have resulted in the customers’ ease as they no longer have to carry any cash to the stores alongside them. Hence, they can make transactions anywhere at any time through a bank app or UPI just with the help of their mobile phones and the internet.

Banks aim to provide accurate, fast, and quality banking services to customers, and the topmost concern is digitization. In promoting digital transactions, the Indian government is at a higher rate. Launching of UPI and BHIM by national payments Corporations of India are the two significant steps for innovation within the payment systems domain in India. An online bank account can also be opened through online banking portals. UPI is a mobile-based interface where people make instant fund transfers between accounts supported by several banks. A few of the most remarkable landmarks within the digital revolution in the banking sector include the implementation of electronic payment systems like NEFT, ECS, RTGS, check, truncation systems, the mobile banking industry, debit cards, credit cards, prepaid cards, etc.

National electronic funds transfer (NEFT) is the most commonly used electronic payment

method to transfer money from any bank branch to another bank in India. The operating time of NEFT takes place in half-hourly batches.

RTGS, Real Time Gross Settlement, is processed for high-value transactions supported in real-time. Two lakhs is the minimum amount to be remitted through RTGS, and there is no upper limit. IMPS, known as Immediate payment service, is an electronic funds transfer facility offered by the National payments Corporation of India, available 24×7.