Page 32 - Banking Finance December 2024

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safe place and believed that they were watched by God. internet access throughout the nation with online banking
Loans were given by temples of Babylon in the beginning of being the need of the hour due to Covid 19.
2000 BCE.
Digital Banking - Concept
The oldest banks across the word are: Banca Monte Dei Digital banking is the use of electronic gadgets computers,
Paschi di Siena was founded in 1472, Tuscan city of Siena, phones and electronic platforms to conduct various banking
followed by Berenberg bank in 1590, Sveriges Riksbank in
transactions without bank employees' interaction. Checking
1668, C. Hoare & Co. in 1692 and Bankhaus Meltzer in account balance; transferring funds; paying bills; applying
1671.
for loans; applying for - cheque books, ATM-cum-Debit
Cards, credit cards, opening accounts, change of card pins
Literature shows that banking in India originated in 1700s and many more.
and Bank of Bombay was the first bank set up in 1720. But,
Bank of Hindustan is known as of India's first modern banks
founded in Calcutta in 1770. Certain banks set up in the mid- Digital Banking - An Edge over Traditional
1800s were merged and called themselves as Imperial Bank Banking
of India. Later it is called as State Bank of India. In Indian Digital banking has edge over traditional banking in terms
banking industry nationalisation of 14 commercial banks is of : Convenience of banking transaction from the customer
an important change and in 1980 six banks. The first ATM comforts of area; 24*7 access to banking functions;
came in Mumbai in 1987 and today, the ATMs capable of
Facilitates online payments; empowers customer schedule
delivering many other services like checking account balance; of payments; Saves time, effort and cost of bank transaction;
transfer of money, bill payments, cash deposits, etc. Accessible bank services from remote areas; Helps monitor
Banking sector in India travelled a long way and with the amount in accounts; Reduce of fake currency with
use of computers and information technology banks moved electronic funds transfer; Restricts circulated of
from traditional systems to digital systems. unaccounted/black money; Helps block misplaced ATM/
Debit and credit cards through call or online banking;
Over the recent past, India seen a remarkable digital shift Paperless banking and the like.
in banking industry. This shift was results of the Indian
government's initiatives motivating use of digital banking Digital Banking Modes
platforms for banking. Simple, accessible and transparent
banking is result of digital banking. Digital banking can be done using computers, mobile phones,
electronic platforms, banking cards - ATM/Debit card, Credit
The Evolution of Digital Banking
One cannot imagine economic growth without technological
development. As said earlier economy depends on industries
growth, industries growth depends on banks. Technology is
the reason for seeing unimaginable move from traditional
to digital banking across the world during the last two
decades. Introduction of Automated Teller Machines (ATMs)
was the beginning of digital banking and flourished due to
access to internet and affordable smart phones. This
transformed customer's expectations and banks came up
with innovative processes and products.

With the use of technology banks offered 24x7 services by
the end of 20th Century. Today, customers carry their
banking facility with them, on their smartphones without
involving the banking staff. Government of India's vision
'cashless economy' has been accelerated by facilitating

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