Digital Banking: The Need of the Hour

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.

- Prof. G. Sudarsana Reddy and Ms. Sarvamangala K.J

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.

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. Banks play a pivotal role in motivating earners save and deposit; pay interest on deposits; lend money to the needy individuals, institutions, and business organisations; give guarantees on behalf of the applicant to cover payment obligation to a third party; facilitate trade and commerce; offers payment facilities to various local and international business houses; offers secure services to help individuals. Therefore, banks are playing a pivotal role in building nation for more than a century, and we cannot imagine an economy without banks.

Origin of Bank