AN EMPIRICAL STUDY ON E-BANKING IN INDIAN SCENARIO (By-Shivam)
While there are
challenges of Infrastructure, Security, Awareness, Literacy plaguing it, it is
undoubtedly the best alternative to traditional branch banking. Increasing cost
of Manpower, Brick and mortar structures and an awareness about benefits
associated with it including environmental protection will make it choice of
the new generation in the future. Thus there is a need to work together for all
the parties concerned like banks, customers, businesses and the government to
derive maximum benefit out of this. Both the hypotheses i.e. the existing modes
and core principles of E-Banking are not completely efficient; they need
modifications; and despite having certain demerits and challenges; E-Banking
has got future prospects in India; have proved to be true.
E-banking is a survival
and growth weapon for businesses and is fundamental aspect of the Indian
Banking industry. It has removed all barriers across international borders and
created a global banking scenario with ease and availability of services
online. The efficient use of technology has facilitated accurate and timely
management of the increased transaction volumes of banks which comes with
larger customer base.
Further, the Information
Technology Act, 2000 has provided the much needed legal recognition to the
creation, transmission and retention of electronic data. The upward surge in
the ATMs across the nation, multi folds increase in RTGS/NEFT transactions,
rise in the number of E-banking users, all are indicative of the fact that
Indian banking industry has largely been successful in catering to the needs of
the masses and there is no looking back.
In spite of such a
blessing Internet banking has proven to be, it is hounded by issues like
security theft, phishing attacks, money laundering, etc. which is why customers
are cautious of conducting banking transactions over the internet. However,
such issues can be addressed by ensuring people are aware of the e-banking
model and code of conduct especially in the rural remote areas. For that,
government can conduct seminars and workshops organised at mass level and
reaching the masses.
In addition to that, more
funds needs to be invested in ensuring safety and security of personal data
with installation of customer identification devices, periodic reviews on
compliance with laws, information screening techniques, etc. On the whole, we
can conclude that technology alone doesn’t help but intellectual and trained
human resources are supposed to handle such tools which will bring performance
improvement and give a competitive edge to banks.