Page 28 - Banking Finance October 2019

COVER STORY

VIRTUAL

BANKING IN

INDIA'S

BANKING

SCENARIO-PROS

AND CONS

B anking in India has undergone a significant recourse to the bank by the customer. This is the latest and

transformation in the nineties. While banks have
foremost form of present day banking where most of the
services are delivered "Virtually" which means, the services
been striving to strengthen customer relationship
and move towards 'relationship banking',
eventuality that customers require their physical presence
customers are increasingly moving away from the confines are delivered through Web and there is almost 1 to 2%
of traditional branch-banking and are seeking the at their Bank Branch. These include Automated Teller
convenience of remote electronic banking services. Machines (ATMs), Shared ATM networks, Electronic Funds
Transfer at Point of Sale (EFTPoS), Smart Cards, Stored-Value
So let us understand the concept -Virtual banking denotes Cards, phone-banking and more recently, internet and
the provision of banking and related services through intranet banking.
extensive use of information technology without direct
The different channels are utilised as an interface with a
Host CBS - (core banking solution) through a custom built
About the author middle-ware. It provides customers of the bank, real-time
access to their relationships in the bank such as account
Manjula Wadhwa inquiries, fund transfers, credit cards, payments and
Asstt. General Manager remittances, where one can make payments to individuals
NABARD, Haryana Regional Office or institutions, online. Now, let us understand the concept
Chandigarh with the help of following picture:-

28 | 2019 | OCTOBER | BANKING FINANCE