Page 31 - Banking Finance December 2024

ARTICLE

Digital

Banking: The

Need of the

Ms. Sarvamangala K.J
Hour Prof. G. Sudarsana Reddy Asst. Professor of Commerce,
Professor. Department of Studies
& Research in Commerce, Tumkur
Tumakuru, Karnataka
University, Tumakuru, Karnataka. Seshadripuram College,

Development of an economy, especially economic growth primarily depends on industrial
development. The industries depend on financial institutions support for funds especially from
banks. Banks encourage individuals save and mobilise funds from bank deposits.

Abstract
Development of an economy, especially economic growth primarily depends on industries, financial institutions especially
banks, technological innovations and entrepreneurial ideas. Banks encourage individuals save money in the form of
deposits; lend money to the need. The way banks operate today is far away from the traditional way of operations a
century back. Customer expectations from banks were increased. The era of digital banking was started with the
inauguration of Automated Teller Machine (ATM). The numbers of customers increased drastically after launch of PMJDY.
India's Digital Public Infrastructure; access to internet data, affordable smart phones and COVID 19 lockdown played
a key role in the growth of digital banking. Digital banking has edge over traditional banking due to convenience; 24*7
access; facilitates online payments; helps schedule periodic payments; Saves time, effort and cost; accessible bank
services from remote areas; helps monitor amount in accounts; reduces counterfeit currency; restricts circulation of
unaccounted money and the like.
D evelopment of an economy, especially economic individuals. Therefore, banks are playing a pivotal role in
growth primarily depends on industrial
building nation for more than a century, and we cannot
development. The industries depend on financial
institutions support for funds especially from banks. imagine an economy without banks.
Banks encourage individuals save and mobilise funds from Origin of Bank
bank deposits. Banks play a pivotal role in motivating earners The need for bank rose when people earned money and
save and deposit; pay interest on deposits; lend money to wealthy people wanted to keep money safe. The general
the needy individuals, institutions, and business meaning of banking is an intermediation activity. Trace of
organisations; give guarantees on behalf of the applicant to banking activity may be long ago as an ancient
cover payment obligation to a third party; facilitate trade Mesopotamia at royal palaces, religious temples and citizens
and commerce; offers payment facilities to various local and houses where valuable merchandise kept and the ownership
international business houses; offers secure services to help title assigned by receipt of deposit. Temples were understood

28 | 2024 | DECEMBER | BANKING FINANCE