The Impact of Digitalisation on Indian Banking Sector

"Digital" is the new buzz word in all sector. With other sector, banking is also all around the globe shifting towards digitalization. Banks of all sizes and across all regions are making huge investments in digital initiatives in order to maintain a competitive edge and deliver the maximum to its customers. Adoption of digitalization is very important for the banking sector. By embracing digitalization, banks can provide enhanced customer services. This provides convenience to customers and helps in saving time. Digitalization has transformed manual processes, transactions and activities into digital services. Across all verticals, consumer needs have been met in entirely innovative ways, disrupting existing enterprise value chains. Digitalization reduces human error and thus builds customer loyalty. Today, people have round-the-clock access to banks due to online banking. Managing large amounts of cash has also become easier. Digitalization has also benefitted customers by facilitating cashless transactions. Customers need not store cash anymore and can make transactions at any place and time. Several commercial banks started moving towards digital customer services to remain competitive and relevant in the race. Banks have benefitted in several ways by adopting newer technologies. E-banking has resulted in reducing costs drastically and has helped generate revenue through various channels. Commercial Banks in India have moved towards technology by way of Bank Mechanization and Automation with the introduction to MICR based cheque processing, Electronic Funds transfer, Inter-connectivity among bank Branches and implementation of ATM Automated Teller Machine Channel have resulted in the convenience of Anytime banking. Strong initiatives have been taken by the Reserve Bank of India in strengthening the Payment and Settlement systems in banks. Indian government, banks, fintech companies have been innovating and changing the way India spends its money. At the same time digital revolution also raises new challenges to the stability and the integrity of the financial system and the protection of consumers. Dr. Mrs. Manisha Vikas Jagtap "The Impact of Digitalisation on Indian Banking Sector" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Special Issue | International Conference on Digital Economy and its Impact on Business and Industry , October 2018, URL: http://www.ijtsrd.com/papers/ijtsrd18688.pdf